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In consequence of Western sanctions, Russia's economy is under pressure, which inevitably leads to the devaluation of the ruble. A similar trend is observed in Belarus, Ukraine and some other CIS countries. As the main currency for payments for property in Bulgaria is the Euro, there is quite logical question: “How does the housing market react to it, after all for anybody not a secret that the major players here are just buyers from CIS countries? Whether against this background, expect the fall in property prices?
How exchange rates affect demand
Experts estimate about 80% of the total investment capital allocated for the purchase of a Bulgarian property, comes from Russia and CIS countries. Due to the decrease in exchange rates of national currencies such purchase abroad becomes for citizens of these countries more expensive. Whether it will decrease demand and, as consequence, reduction of the price of a square meter?
Forecasts for different housing segments
According to experts' forecasts, a significant decline in housing prices is not expected. This is especially true of inexpensive apartments in resort areas, where if the price drops will only increase. The projected reduction in price of housing in this segment can be from 2% to 4%. The fact that the price of budget real estate is already quite low, so their further decline, will lead to growth in domestic demand, as well as strengthening investors from other countries. However, apparently, the trends described above could adversely affect luxury real estate, the cost of which can vary in a wider range.
