For sellers

NewEstate shelves plans for Bulgarian Embassy exhibition in Kiev

04 March 14

The Ukraine has proven to be one of the greatest growth markets for Bulgarian property in the past year. In order to maximise on this growth NewEstate had agreed with the Bulgarian Embassy in Kiev to jointly and exclusively exhibit at the embassy’s function facilities to promote Bulgarian property and lifestyle. Naturally the marketing of properties listed with us by private vendors would be the key aspect of this event. Unfortunately, we have last week had to indefinitely suspend all proceedings given the level of violence seen not only in the capital Kiev, but now across the major urban areas of the Ukraine. Sadly geopolitics has directly curbed our ability to market and your chances to sell.

 

With Russia having moved 16,000 of its troops out of its barracks and naval bases in Ukraine’s southern peninsula, Crimea, numerous international agreements and Ukraine’s sovereign rights have been breached. Yesterday financial markets reacted negatively by moving away from Russia’s gas and oil, opting instead for gold and currency reserves, which in turn caused the Rubel to tumble sharply to a record low against the Euro. This has caused widespread panic amongst Russian buyers who are considering Bulgarian property or who are already in the midst of the process: vendors who have agreed to sales in recent weeks but not yet completed, will find that their buyers are now having to find an extra 10% of Euros to make up from the shortfall in the value of their Russian currency.

 

Whilst the Ukrainian crisis might seem a distant problem for many of us in Europe, the reality is actually very different if you are currently looking to sell your Bulgarian assets. In an already tough market where prices and low and buyers scarce this news in unlikely to aid recovery of property prices. Putin’s military intervention will certainly result in the failure of many agreed sales as buyers fail to find the extra cash now needed to complete.

 

On the contrary, this week has also seen a rise in anxious Russian buyers keen to get their money out of Russia and into a European Union asset. Buyers who have been shopping for property with the intention to migrate seem to have experienced an acute reminder of the instability of their own government, which has reinforced reasons why they are looking settle in Bulgaria and prompted them to action. Sad as this might be, these are genuinely factors that will directly impact the success of vendors seeking to sell in the coming months.