Reading through the posts that are spreading around the social networks gives me an extremely bad impression of some spreading misinformation about the property market and here I have decided to bust some of the myths.
1. Myth: No one buys real estate.
Reality: In the first half of 2023, there were as many as 7,415 transactions, which means people are still buying real estate. The new statistics prove that buyers aren't just gone. They are still interested and investing in real estate. Indeed, the market may be changing, but real estate remains an attractive investment.
2. Myth: Large-scale construction continues.
Reality: construction has its own cycles, and it's not always as many people think. In the second quarter of 2023, the number of homes placed in service was 449, down 19% from the same period in 2022. Also notable is that the number of building permits is also lower, as reported by local economic experts. This fact indicates that the construction market is stabilizing and not growing at the same rate as before.
3. Myth: Property prices never fall.
Reality: Real estate, like any other market, is subject to fluctuations. Historically, we have seen periodic price declines, most significantly during the Great Recession of 2008. There is no guarantee that real estate prices will always rise. An effective and realistic investment requires attention to many factors, including the state of the market, economic conditions and the quality of the property.
4. Myth: Brokers protect the interests of their clients.
Reality: In today's real estate market, there are many realtors who truly look out for the interests of their clients. However, you need to be informed and careful when choosing a broker. The steadily increasing number of brokers in the market can lead you to meet those who prefer quick and easy deals instead of looking out for the long-term interests of their clients.
5. Myth: Joining the euro area will increase property prices.
Reality: Bulgaria is in a currency board regime and maintains a fixed exchange rate against the euro. Even if the euro becomes the national currency, this in itself will not lead to an automatic increase in real estate prices. As joining the euro area is a complex process, property prices will continue to be shaped by a variety of factors, including the economic environment and demand.
6. Myth: Urban infrastructure does not affect property prices.
Reality: Urban infrastructure is essential to real estate values. Quality infrastructure affects the lives and comfort of residents, as well as the attractiveness of a city or area to investors and buyers. Poor city management can lead to a withdrawal of interest from a city and reduce the value of real estate in that city.
With this analysis and dispelling of myths, hopefully you are better informed and ready to make a better decision when it comes to real estate. The real estate market is dynamic and changing, but savvy investors and buyers always have an advantage because they understand the truth behind the myths.
