Bulgaria news blog

The major market for investors in the Bulgarian economy remains the real estate market and not the stock exchange.
This was announced by Georgi Stoev from "Industry Watch" on "Darik Kafe". His forecast is that the segment of vacation properties is the one, which will be most affected by the financial crisis.
According to Stoev, the people who save money in Bulgaria depend mostly on their homes as investment number one and investment number two is bank deposits. This raises the question about what will happen to the real estate market and the stability of the bank system in Bulgaria, Stoev said.
"The vacation properties market has always been and will always be a risky one. In a moment of liquidity crisis the first projects, which will be blocked or suspended will be the market of "second homes, as they say", the analyzer said. In big cities real estate is still a reliable, liquid and good investment, Stoev added.
"Regarding the bank stability at this stage we don't see any problems for Bulgarian banks, thus people who save money in deposits should not be concerned that something might happen to their money", the economist said.

by Stefan Nikolov

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