If the Bulgarian construction sector was to keep its Q1 development pace, the industry would see a -25% drop in the number of new construction projects to come to the market in 2009 compared to the year before, according to Arco Real Estate.

Sofia was headed for a -32% year-on-year drop, whereas Varna and Bourgas faced declines of 32% and 14% respectively, according to the agency.

The forecast was based on data from the National Statistical Institute (NSI), which showed that 3,897 new housing units had come to market in the first quarter of 2009, against 20924 for all of 2008, according to Bulgarian daily Dnevnik.

The number of new building permits reflected the trend, with the number of permits issued halving in the first quarter, compared to the same period of 2007, when the property sector was at its peak, Dnevnik said.

Arco Real Estate warned that this could create a vacuum with no finished new housing units appearing on the market in 2010.