Hello and for many years. In today's episode I've jotted down some of my thoughts on the current state of the property market, some emerging trends, and a few tips for those involved. Here's a quick summary of what you can expect:
- real estate prices in Plovdiv have started to acquire fantastic proportions, prices of around 1800 euros per sqm are normal, and this trend will continue only in the more interesting neighborhoods such as the West, around the Medical University and the Center;
- there are a lot of buyers on the property market, deals are done, properties remain the preferred investment of Bulgarians;
- there is a lot of speculation and misinformation on the market, created by owners and some real estate agents in order to instill fear in potential buyers, especially those coming from smaller settlements;
- the price of the construction service for the last year has increased by between 50 and 100 euros per sqm, depending on the additional services offered, and this is further used for speculative price increases, although quite often the increase is of unjustified proportions, especially in the case of old construction, which increases its prices at the rate of new, despite the many additional costs it brings with it;
- most buyers are quite unfamiliar with the realities of the market and make quick and rash decisions that help some sellers to be able to realize their properties at an above-market price, but this does not mean that everyone will be able to realize their property at such a price;
- there is a large group of investors who sell at or around market prices, they are in my opinion the most secure and have the most sober judgment of things, prefer to rezone their properties quickly and have no problem with the future financing of their sites;
- there are a lot of investors who are highly overvalued in the market and sell well above average levels, they are the most risky because at some point if they can not make sales and will lag behind with financing and construction and may not even complete their objects;
- there are also investors who sell well below market, where it is guaranteed that after completion of the object there will be a lot of "hidden defects" that will result in future problems with the occupancy and use of the property;
- various theories about the sharp decline in prices are also quite groundless, if there is one, it will not be sudden, but gradual and will be associated with various macroeconomic upheavals such as rising interest rates on mortgage loans, political crises and others;
- Rising property prices, a general shortage of available properties for sale and low mortgage rates are a global trend that currently has no indication of changing dramatically.
My main advice to all the participants is - inform yourself, follow news, trends, talk to professionals, don't theorize and don't think that you know the most. This is the only guarantee that you will make the right decisions and not regret afterwards some stupid thing you did, like buying a cheap property, and thinking you made the deal of a lifetime, and then finding out that your occupancy and use costs are sky high.
