The dynamic geopolitical reality undoubtedly has a serious impact on the global economy and individual industries such as trade, manufacturing, logistics and, last but not least, the real estate market.
The impact on the real estate segment is multifaceted. The most important aspect is that it creates additional uncertainty and this definitely does not help investors. “Along the chain, this uncertainty reflects on the contraction or closure of some industries, since with the entry into force of some tariffs, the business model becomes impossible. By closing a manufacturing plant, there will be free production areas or the demand for them will decrease. So, in many different ways, these duties indirectly affect the real estate market. But uncertainty in general hinders and does not favor real estate investments“, commented specifically for the largest real estate website in our country imot.bg Stanimira Pashova, CEO of Cushman & Wakefield Forton.
It has reached a point where not only individuals, but also large investors are taking a wait-and-see position. Some of them are considering alternative investment instruments, since this always exists as an option.
„We are observing a short-term effect, i.e. this uncertainty is slowing down investments, but not only in the real estate sector, but in a number of other sectors. On the other hand, if this with the tariffs turns out to be something permanent, it will awaken another kind of movement – when there are tariffs and protectionist policies, a movement of investment flows begins, which return production, create local production. That is, there is another kind of movement, which requires a little more time to observe – there is a little medium-term to long-term effect, if this with the tariffs turns out to be something permanent“, adds Pashova.
Initially, Trump's tariffs were expected to be a one-time action with a quick effect, which would be quickly absorbed by the market. Now, however, this is happening again and this is not a positive factor for the property market.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg