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How COVID-19 will Affect the Property Market in Bulgaria

Posted by admin on April 16, 2020
| Blog
| 0

With the beginning of the new year, the world faced a pandemic that is increasingly spreading around the world.

In Bulgaria, the coronavirus or COVID-19 is still in control, but many people lose their jobs, have no salaries, etc. due to the quarantine situation.
Businesses go bankrupt because they do not have the option of working from home and this does not bring them any income, but only costs for rent, salaries, etc.
What is the real estate situation and how will the pandemic affect our market?

Unfortunately, we can only guess what will happen, since we do not know how long it will last and whether there will be more and more infected people in our country.

So far, property prices are still in the same position despite the current situation.
We do not think that there will be a change in the market this year if the situation not escalate.

Of course, it is too early for general conclusions, and there are exceptions if the pandemic develops and covers the whole country.
Banks are open to housing lending, which means that can have no impact on the property market, as they are a prerequisite for this, and the 2009 crisis is not likely to happen again.

Globally, and mainly on the US market, there is a large decline in property prices, which has not hit us yet.

We do not expect price rises, and we expect people who searched for a property before the pandemic to continue their apartment inspections shortly after it has passed.

This situation is detrimental to some businesses, but others have benefits to creatively giving their customers what they need.

In the real estate sector, virtual apartment inspections are already in the market, which does not cancel the actual visit, of course, but it eliminates some apartments from the list and adds others that people liked, so that it can be quickly and easily when we go back to a normal lifestyle.

We have also recently been offering such an option to our customers, which facilitate them and shows increasing interest.

The main problem in Bulgaria at the moment is the foreign investors, who invest a lot in our country, but the borders are closed now so they can’t come.
We have a lot of investors from Italy, but because of the tragic situation there, businesses are going down, so we expect fewer investors to buy properties after the pandemic.

On the other hand, we all know that investing in real estate is a stable future income, whether or not there is a crisis, it depends only on how profitable it will be, not whether it will be profitable.

The property market is a segment that cannot “get sick” or be “infected” and despite all the illnesses/crises it goes through, it has immunity and remains stable.
We are certainly at a time when many people are postponing the purchase of the property or are hesitant, but if the situation soon returns to normal, it will not affect the property market.

Like any crisis, this may affect real estate, but it will be for a short time, minimal and almost inconspicuous.
In summary, the coronavirus pandemic, which has affected the whole world, is reflected almost everywhere in the economy and the real estate market.

There are no prerequisites for a strong impact in Bulgaria so far, with only a drop in foreign investment expected because of the impossibility of coming to our country, and some may be not sure whether to take such a step next year, even if the pandemic is over.

However, the housing market in Bulgaria is not expected to change if the situation remains, as it currently does not escalate.
But will the emergency ends soon and we can return to our normal way of life?

We expect to understand and, during this time, strictly follow the recommendations for staying home.

We can only hope that the apex has already passed and we have better days ahead to lead our normal lifestyle again and the real estate market to be minimally affected.

Author: Property4You
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