The coronavirus outbreak continues to affect people and economies deeply. In the latest online panel organized by Property Forum, three real estate professionals discussed the impacts of the coronavirus crisis on the Bulgarian property market.
The office market in Bulgaria was very active before the outbreak of the coronavirus crisis, especially due to the presence of big IT companies on the tenant side, so the sector is still stable. However, there are no new investment deals at the moment due to the uncertainty of the situation, the focus lies on the ongoing developments, stated Tanya Kosseva-Boshova MRICS, Managing Partner at Park Lane Developments. As we can see now the reopening processes of Western European companies and manufactures, many employers will start the return to offices.
Currently, about 90 percent of office workers in Bulgaria are working from home, therefore property managers have to deal with empty buildings and new challenges. With the process of people starting to move back to the office buildings, new sanitary standards and hygienic measures need to be implemented, said Liliya Krasteva, Country Head Bulgaria, Head of Property Management Bulgaria at Ceres Management Services.
Even though many businesses are deeply affected by the crisis and cannot pay their rents and credits, especially in tourism and leisure industry, the Bulgarian government neglected to introduce any serious support measures yet, she added.
Michaela Lashova MRICS, CEO of Cushman & Wakefield Forton also forecasted a new trend of social distancing along with revised sanitary standards in the office buildings. With employers starting to bring back their people into the office buildings, we can expect a combination of office work and remote work in the future.
Banks are focusing on the financing of ongoing projects and are not starting new ones. A few deals, even some of them in the final stage of the pipeline, have been renegotiated with price adjustments or postponed, she explained.
The crisis also provides new opportunities. We can see some new players – mostly local investors – entering to the Bulgarian the market, she added.
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