At this point in time, there is no reason to believe that house prices will not hold steady at current levels. Bulgaria stands extremely well on the European stage and I am optimistic about the real estate market in our country. While the rest of the world is experiencing difficulties related to the policy of the central banks and the increase in interest rates, such challenges are not a factor for the Bulgarian real estate market. This is what Yordan Yordanov, co-owner and managing director of a real estate agency, said in the program “Business Start” on Bloomberg TV Bulgaria with host Roselina Petkova.
“We don’t expect an increase in interest rates. If there is one until the end of 2024, as far as I know, this increase would be extremely smooth and within 1%, which means interest rates of the order of 3.5%”, categorical was the guest.
“Expectations for interest rates were that we would have rates rise in the order of 3-4-5% last year, and not only have they not risen, they have even fallen, as the interest rate levels that are being offered are in the order of 2 ,2-2.5-2.8%. These are the standard interest rates. Bulgaria has never had such interest rates, and last year, instead of the apocalyptic picture that everyone was talking about, the exact opposite happened – mortgage rates loans fell and even reached 2.1%”.
“The real estate market is determined by one factor, and that is his majesty the buyer,” said Yordanov. “What does stable real estate prices mean? It means that people have stable incomes, that the credit system in a country is working, and realistically there is no reason for prices to fall.”
What does it mean for real estate prices to crash? This means that the purchasing power will decrease, we will fall into some kind of crisis, recession and people will not have so much finances, they will refrain from spending and as a result, real estate prices will fall, the interlocutor explained. “At the moment, however, Bulgaria stands extremely well on the European stage and I am extremely optimistic about the real estate market in our country.”
“Bulgaria is currently the best country in the European Union for investing in real estate in order to realize very good profits”.
What should attract foreign investors to Bulgaria is the perfect tax system we have, said Yordan Yordanov. He also said that in the area of investments, real estate has proven to be the best investment in 2022, while all other instruments have suffered a crash.
Regarding the prospect of increasing property taxes, the guest commented that if this is done “it should be taken into account”.
How can business stimulate the solution of the demographic problem in Bulgaria? How can the issue of the lack of public information about the real estate market be solved? Why is regulation of the “real estate broker” profession needed in Bulgaria?
See the entire conversation at the video of Bloomberg TV Bulgaria
2023-11-20 16:00:00
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