Construction industry setback to lead to real estate shortage

Construction business and the real estate market have suffered a severe setback due to the crisis. Improvement in the Bulgarian economy, however, has stimulated new trends. One is launching new investment projects – a non-existent practice in the past 2 years. These are mainly trade centers, supermarkets, etc. The second trend is the feeling of stabilizing economy, which stimulates consumption. This also positively affects the real estate market, which has shown some improvement in the past 9 months. Further economic growth would boost these trends. This will increase employment and people would then start to look for investments in real estates. Here is what bank expert Deyan Todorov said in an interview for Radio Bulgaria.

We asked him what were the big issues in construction industry?

“The big issue is how to make people trust again in big economy. They must believe that their incomes would be stable and now is the time for investments”, Deyan Todorov says. “Bank deposits have grown by 13% for the past year because people prefer to keep their money in the banks rather than to use them. However, we are optimists about the market. Consumption is to grow and it is better to make investments in real estates now than a year ago. People have good options for financing these days. Actually, construction companies and financial institutions are very active in search of clients.”

Foreign investments have decreased, including those in real estates. What are the sectors that attract weakest investment interest?

“Currently, there is no investment interest in Bulgarian resorts. Construction in the mountain resort of Bansko or the sea resort of Slanchev Bryag has stopped, excluding a small group of investors.”

What are the latest trends in investments in the real estate market?

“Investments are aimed at trade centers, malls, and supermarkets”, Deyan Todorov says. “This is so because other sectors were more developed. There are a number of office buildings for example but not enough trade centers”, the expert says.

Text and photo: www.bnr.bg

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