Global Crisis Hits Real Estate MarketРубрика: Property news Източник: Dnevnik
The global financial crisis will affect real property prices - they might plummet in certain countries. This is what Central European Initiative's (CEI) Transition Report reads. It was presented at the 10th CEI Summit Economic Forum.
The twists and turns at the international financial markets over the past few weeks will certainly affect the Central and Eastern European countries, prognosticates the report. It also points out that real property prices in the countries in transition to market economy, such as Bulgaria, could hardly be matched by the purchasing power of the local population, and the situation in the developed EU countries is quite different. The conclusion the report draws is that on the whole, capital flows are shrinking and credit interest rates are swelling worldwide. This will inevitably have a negative effect on the countries in transition, where inflation rates will grow due to the increasing oil and foods prices. The index for the quality of the reforms in Bulgaria is 3,5, which means almost the same as in the majority of the other EU member states.