Property in Bulgaria set to see impressive annual price rises
Wednesday 13th of July 2011
Rises in income levels and an increase in domestic demand are set to result in prices of Property In Bulgaria rise by 5-6 per cent on an annual basis. That’s the view of a leading asset management fund manager who believes that smaller, stable price rises are more likely than the short-term explosion in property values which hit the country in the early part of the 2000s.
Rises in incomes in Bulgaria driving domestic demand for property
Curtis M. Coward, CEO of the Arceland asset management fund told the Sofia News Agency Novinite.com that he believes that property prices in Bulgaria will see a stable 5-6 per cent annual rise.
Coward, who is also a member of the Bulgarian Land and Property Owners Association, believes that as the growth in personal income in Bulgaria is faster than in many other European countries, domestic demand for property will continue to increase.
Mr Coward highlights the proposal of the Bulgarian government to increase the minimum wage by 12.5 per cent in September 2011; ‘an astronomical figure’ compared to most other countries.
Receding chances of EU accession to hit prices
On the downside, however, Mr Coward believes that Bulgaria has lost some of its attraction with foreign investors as hopes of a short term accession to the EU recede.
He said: “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.”
The CEO also believes that Bulgaria needs to build more good quality residential property. He added: “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.
"We think residential over time is a very solid investment and we think that will continue for at least a decade as well.”
