Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
Follow:
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
NEWS BY TOPIC
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
NEWS BY SECTOR
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Bulgarian Real Estate Prices to Stablize at 5-6% Annual Growth Rate - Asset Fund CEO
BULGARIAN REAL ESTATE PRICES TO STABLIZE AT 5-6% ANNUAL GROWTH RATE - ASSET FUND CEO
Date: 04/07/2011
Source: novinite.com
Bulgarian Real Estate Prices to Stablize at 5-6% Annual Growth Rate - Asset Fund CEO

The current driver for real estate values in Bulgaria, the income levels and domestic demand of the population, are set to result in a stable annual growth rate of 5-6% of real estate prices, Curtis M. Coward, CEO of the Arceland asset management fund told Novinite.com (Sofia News Agency) in an interview.

According to Coward, who is also a member of he Bulgarian Land and Property Owners Association (BULLPOA), that is a reliable, understandable, and credible number for a decade, as opposed to 20% or 30% or 40% for 18 months or so.

Although Bulgarians are the poorest people in the EU, he says, the growth in people's income levels is one of the fastest because it is from such a low base, so as a percentage it is growing much faster than in the EU generally.

Citing the proposal of the Bulgarian government to increase the minimum wage by 12.5% in September, he points out that this is "an astronomical figure", compared to the 1, 2 or 3% increases that can be observed in other countries.

In Coward's words, however, Bulgaria has lost some of its attraction as a destination for real estate investment due to the deflated hopes surrounding its EU accession.

"Three years ago there was a huge inflow of what I call "hot money" around the EU accession.

People got very excited and extrapolated that Bulgaria is going to become like the UK or something like this... Not so fast! Probably too much money came in too fast", Arceland's CEO remarks.

He believes that the impact of the catastrophic financial crisis on Bulgaria is gradually fading away, adding that, although the country had nothing to do with the meltdown, it was swept by it like a tsunami.

Regarding investment in the different types of real estate, he highlights farm land as the soundest investment.

"Bulgaria has an enormous potential that is unfulfilled at this point in terms of its agricultural development.", he states, adding that "on the other hand, if you want to talk about residential, or commercial, or office - those are very different stories. "

In his opinion, there has been a huge explosion of retail space n the last year, particularly in Sofia.

"There are 3 or 4 malls that have been delivered in the last year so I think we are at a balance now. I think there is more retail capacity than maybe the city can absorb quickly, so that would be a more difficult area.

The same goes for offices because so many of these complexes are office and retail together. There has been an enormous delivery of inventory particularly in the Class A level, office, and again you see a sharp drop in lease rates, rental rates, because there is so much supply competing for good tenants.

It is like a sign curve, it will go up and down, up and down. Over time, Bulgaria needs more of everything - it needs more offices, more residential. Particularly residential, especially in the big cities, and in Sofia in particular, because the housing stock is generally in such poor condition. "

According to Coward, one of the biggest public policy challenges for the Bulgarian government is going to be how to transition people out of panel block apartment buildings that over time are going to become unsafe.

"We think residential over time is a very solid investment and we think that will continue for at least a decade as well", he concludes.


Topic: Business



Featured District
SOFIA DISTRICT DISTRICT AND CITY INFORMATIONSofia District
Invest Bulgaria Charts
Gross Domestic Product of Bulgaria
Gross Domestic Product of Bulgaria

Final Consumption of Bulgaria
Final Consumption of Bulgaria

See all charts
Did You Know?
Bulgarian Tourism Sector
Bulgarian Tourism Sector
The number of tourists visiting Bulgaria has more than doubled during the last 5 years. ... More

Yambol is a town standing on the banks of the Tounda River. It dates back to Roman times when it was called Dianapolis. The town boasts Roman baths, a medieval fortress, the Saint George Church of 1737, the Saint Nicholas the Miracle Maker Church, the Roofed Market (Bezistena) of the 16th Century, Churshoum Pazar and the Eski Mosque.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2019 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

 
Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.


Bulgaria Translation Bulgarian Agriculture Bulgarian Textile BestFlowers.bg Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.


Our Featured Members