If you were still thinking about spending your nest egg or taking out an installment plan, then we advise you to think faster and here’s why
If you are suddenly not aware, or are aware, but did not attach any importance to it, on January 1, 2025, Bulgaria will introduce the euro into circulation. This is true in concrete plans. The date, in theory, could be postponed; in any case, it will happen next year. If this seems like a simple fact to many, then financial expert Georgiy Angelov from Bloomberg TV Bulgaria, as well as common sense, both disagree with this
Both argue that the euro will force people to exchange their undeclared money, causing a boom in sales of goods and real estate. And this is already being observed, as you may have noticed - the cost of real estate is growing almost every month
“In Bulgaria there is also a lot of cash in levs, which needs to be somehow legalized and this is done through shops, real estate, etc. In the process of exchanging levs for euros in the next 1-2 years, a lot of this money will go directly into the commercial network and into real estate. We are already seeing how much sales are growing in both the retail and residential sectors. In my opinion, all traders will even benefit, because we are talking about more than 10 billion leva under mattresses. Take it out and exchange it,” says the expert. Let’s also not forget that citizens’ deposits in banks amount to more than 87 billion leva, most of which will also be withdrawn from circulation and spent due to the not very favorable exchange rate for euros from banks and the still ambiguous procedure for restructuring the deposit
In addition, there is an increase in the purchasing power of Bulgarians, which continues this year. This means that next year's data will show even better results. This is due to continued income growth and falling inflation. He added that the country will continue to catch up with the average European level, albeit slowly
So, all this will also increase mortgage prices, which will be good for the macroeconomy, given the awakening of the European economy. That is, it will be less profitable for people to take out a mortgage and they will apply for the purchase of real estate on a turnkey basis or in installments from the developer, which will obviously lead to an increase in prices. Therefore, scrape the bottom of the barrel faster!