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Bulgarian Property Market and the Crisis - Quality is Key


Quality is key

To support our view, according to Shtelyan Kalchev, the owner of RE/MAX Connection, the least affected of all property in the Bulgarian market is that of quality and luxury. He says, “the Bulgarian real estate sector is in desperate need of regulation not only for brokerages but also for developers and builders. We need a legal ethical code regulated by and supported by the Bulgarian government".

“The European wide RICS body regulations should be brought in as soon as possible here. We have waited long enough. These new regulations will clear out people who are here for fat profit, only hard working professionals will be left and the situation will definitely improve.”

Property Index Magazine recently reported on events at the BalREc / BalPEx summit, held at the end of last year, which key figures attended. Attendees are said to have given the message that the industry doesn't need help but does want support for implementing reforms in order to improve the property business environment, create new opportunities and enable afffordable quality property.

Their list of suggestions is long and impressive, including such elements as stimulating mortgage lending, measures to support purchasers of primary homes, encourage infrastructure development, low-energy and 'passive' houses, control of water, sewage and energy boards to give developers quick acccess to networks, standards for property sales and new-builds to protect buyers, regulation of estate agents.

It is to be hoped that at least some of these will be put in place swiftly. If so, they will go some way to putting the market back on its rightful footing.

Bulgaria still has an abundance of natural unspoilt beauty, heaps of history and culture, wonderful beaches and winter sports resorts. The cost of living is incredibly low and there are many opportunities if you'd like to establish your own business without a 'nanny state', with only 10% flat corporation and personal tax, one of the lowest in Europe.

The moment in time which presents itself must be grabbed with both hands. What a golden opportunity for the powers that be to strip out the massive speculative elements and over-building. Not be too greedy and create a property market which is sustainable, in keeping with the beautiful Bulgarian nature and with long term steady growth, which will in turn give international buyers more trust and confidence again in buying Bulgarian property.