21. Mai 2010 
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How to transform economic threats into business opportunities?
Nowadays the financially aware person asks himself a reasonable question: “How can I transform economic threats into business opportunities?”. The answer will not consist of a definite semantic unit, but all options swivel around the word “investment”. Considering the recent uncertainty around property prices and their variation, do they vary at all and what are the risks involved for buyers who choose to invest in real estate?
The residential property market price index in Bulgaria for Q1 of 2010 compared to the same period of 2009 is 82.2%, i.e. an average reduction of 17.8%. This has brought about quite eye-catching price levels today, however combined with projects of higher quality dictated by dropping demand. Adding to this the revival of bank lending and relatively low interest rates, the word “investment” somehow emerges in an environment of attractive financial conditions caused by the crisis.
Price is still the determining factor for most local buyers when making their choice for property acquisition, but not the only one yet. Many people prefer suburban areas as a getaway from growing capital population: “each one of us is looking for a destination that provides for slight city isolation and relax”, share clients of Arco Real Estate, Bulgaria. Considering this most people look into southern parts of Sofia where our clients’ needs can all be met, like Manastirski Livadi, Vitosha, Krastova vada, Motopista, Boyana.
American Mercer’s 2009 “Quality of Living” research among 215 populated areas ranked Sofia 113th, leaving behind places like Monaco, Switzerland, and Macedonia. Further reforms and improvements like the flat 10% personal and corporate income tax rate, cheap yet well educated and productive work force, improved infrastructure and generally well integrated EU standards throughout the business are factors that don’t escape foreign investors’ eyes and may as well appear so that soon Bulgaria emerges as the new financial center of the Balkans.
The residential property market price index in Bulgaria for Q1 of 2010 compared to the same period of 2009 is 82.2%, i.e. an average reduction of 17.8%. This has brought about quite eye-catching price levels today, however combined with projects of higher quality dictated by dropping demand. Adding to this the revival of bank lending and relatively low interest rates, the word “investment” somehow emerges in an environment of attractive financial conditions caused by the crisis.
Price is still the determining factor for most local buyers when making their choice for property acquisition, but not the only one yet. Many people prefer suburban areas as a getaway from growing capital population: “each one of us is looking for a destination that provides for slight city isolation and relax”, share clients of Arco Real Estate, Bulgaria. Considering this most people look into southern parts of Sofia where our clients’ needs can all be met, like Manastirski Livadi, Vitosha, Krastova vada, Motopista, Boyana.
American Mercer’s 2009 “Quality of Living” research among 215 populated areas ranked Sofia 113th, leaving behind places like Monaco, Switzerland, and Macedonia. Further reforms and improvements like the flat 10% personal and corporate income tax rate, cheap yet well educated and productive work force, improved infrastructure and generally well integrated EU standards throughout the business are factors that don’t escape foreign investors’ eyes and may as well appear so that soon Bulgaria emerges as the new financial center of the Balkans.
