Viktor Baramov, “Debt Collection Agency”: Interest in industrial real estate is growing

Interest in indsutrial real estate in Bulgaria continues to grow and the market is recovering from the shock of 2020. This observation was shares by Viktor Baramov, Director of “Corporate and Secured Claims Division” in “Debt Collection Agnecy”, part of B2Holding, during the discussion “The real estate market and the valuation business”. The meeting of real estate experts was organized by the Chamber of the Professional Valuers. 

Viktor Baramov says that DCA has a wealthy pool of various properties – both business and residential, holiday and industrial, which gives a more specific view on the market. The interes to the industrial properties, sold due to overdue debt, is a results of demand for larger pieces of land, including old factories, whose purpose is to be changed by the new owner. Another demand is for terrains with appropriate infrastructure for the construction fo solar facilities, shows the observation of Viktor Baramov.

“There’s a trend on the housing market, due to the fact that many people, which lived and worked abroad, have returned to Bulgaria because of the COVID-19 pandemic. They are looking for relatively cheaper real estates. On the one hand they invest their money, because they think that the inflation rate is devalues them, and on the other hand they whant to have a place, where to stay in Bulgaria”, noted Baramov. This trend is observing not only in Sofia, but also in many regional cities, including those, that were defined as “declining”, such as Vidin, Montana, Vratsa.

“On the one hand the inflation stimulates buyers to make investments, because they whant to save value of their money. On the other hand they are worried will they need funds for unexpected expences, caused by the current uncertainty geopolitical therms, added Baramov.

According to the DCA observation, most buyers are interested in big cities, with good infrastructure, as well as in proprties, which are almost ready for use. There is no interest in property in need of significant investments, due to the rising price of building materials and services. The buyers also is running away of holiday properties.

Viktor Baramov says that the expectations are rising inflation rate and economic obstacles to increase the share of non-performing loans in the medium term. So, the companies, specializing in debt management, will also offer more real estates for sale on the secondary market for troubled assets.

“When they don’t work, these assets don’t produced anything and our task is to bring them back to the life, in order to contribute added value”, noted Mr Baramov. He pointed out that the differences between appraisals, maked of the properties by external specialized valuers and those, maked subsequently by DCA on the basis of an internal benchmark, is only about 10%. Baramov advised valuers to pay attention to the specific ot the appraised properties and to look at them complex, because in many cases not just a property is for sale, but also a working business. 

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