The purchasing power of Bulgarians is like in 1982, Georgi Shopov, the Chairman of the National Association of Property Developers explained
The rate of return of the properties in Bulgaria can reach 18% per year, Georgi Shopov, the Chairman of the National Association of Property Developers commented. This happened at a discussion about the trends on the real estate market within the exhibition Architecture and Construction Week from 25 to 28 March 2020. The rate of return of the investment varies around 5% on an annual basis, the capital yield is approximately 7%. If the money is kept in a bank, the yield of 12% can now reach 18%. The purchasing power is like in 1982, Georgi Shopov explained. It is calculated by the average wage on the value of the property, which in Bulgaria is 0.8%, while in Europe it is on average 0.1%. This fact is a positive news and this is something that we should not take as an example from other countries, Shopov explained.
The reason for the low percentage of the purchasing power is that banks buy the properties at speculative prices and then re-sell at a higher price, which we should not let happen in our country. In Istanbul every year the municipality regulates the market and allocates to private capital certain pieces of land, which determines good prices per square meter for very nice and well-arranged within the city complexes, Shopov clarified. The investors there earn primarily from turnover.
Nearly 6% moderate growth in the real estate market is noted as a trend by Eng. Lyubomir Chavdarov from Contract City. It is very important that in the post-crisis period, when a growth of 3-5% is moderate, wages get increased and the administrative burden get reduced, Chavdarov commented.
Customers are increasingly prepared to make informed choices, Irina Kaneva, commercial and marketing director of BLD advises. They are ready to add to the price, but to get a higher added value. There is a market growth in the middle and high class properties. There is a renaissance of the pantry, large kitchens, most of the rooms, and increasing of home maintenance staff, Kaneva commented.
In many cases, investors create a location.
The National Association of Property Developers has addressed the issues of the surrounding area, infrastructure and the appearance of residential neighbourhood. There is no overdevelopment, there is chaos, commented from the association. They also commented how the administrative burden affects property prices. The participants also discussed the issues hindering the development of the building entrepreneurship and the negative effects for the society.
Prof. Niki Founta from Yanina University joined the event and presented the bioclimatic architecture in Greece.