After all, you only find out who is swimming naked when the tide goes out. Warren Buffett
Recent articles discuss the possibilities of price falling in the real estate sector in Bulgaria. Some websites even have dedicated section for properties with falling prices. According to the statistics in some areas the prices are falling with nearly 40%, which might not be the case for big cities so far, but who knows… After the boom in real estate market the cooling period is now a fact.
Although many analysts believed that the world crisis will not affect Bulgaria (for various reasons) at the moment not that many people are so confident. The effect of the crisis is very obvious in the number of deals who are signed recently. Unlike the past nowadays most notaries have one or two deals per day. The question is: will the number of sales reflect property’s prices?
As far as the properties in resorts like Sunny Beach, Bansko and others are concerned - the answer is obvious. Lack of rentals, low income on investment, bad weather, short season and other factors were pushing the prices down even before the crisis. Many investment projects currently are frozen either for lack of financing or for lack of demand. In even worse condition are projects that started but at the moment are in the middle of nowhere - very few off plan buyers and continuous lack of interest.
An ancient Chinese proverb and/or curse(?) is saying “May you live in interesting times”. Well, looks like those times are coming.
One Comment
I am sure that we live in interesting times here in Bulgaria.
Nice reading the article though…