Mauricio Mesa Gomez, regional director, Bulgaria and Romania, Hercesa Internacional: VAT on property in Bulgaria is too high

The expectations for 2009 are to be a very tough year, especially for Bulgaria. Speaking just about real estate Sofia is in a better situation than Bucharest because Bucharest has developed in a very aggressive way. I think that both economies, Romania and Bulgaria are strong enough and will go through a decrease of the economic growth but I hope they will not enter a recession.
A measure that could be applied is the reduction of the value-added tax for home purchases. In Spain it is 7 per cent for property as the standard level is 16 per cent. Twenty per cent for property is very high. Another possibility is an initiative that is implemented in Spain – a saving account for real estate purchases. The government gives you this tool apart from other types of saving. So first, you have way to save and the bank is happy because you create liquidity in it.
If the government can approve and implement such measures fast it will help the market very much. I cannot say they are the solution but for sure they would help to restart the market again.
The fluctuations of the market are something natural. I am sure that we are going to sell because people are interested in buying. The way to get confidence back is just to continue working in a professional way. I understand that people relying on media are going to wait because they are sure that the situation will be worse in two or three months and they are going to get properties almost for free. This will change. Banks are also willing to change the situation because a big part of their business it the mortgage segment and development loans. So it is in the interest of everyone. Real estate is also one of the drivers of the economy. I believe that confidence will come back. The question is when.

Read more:
The crisis in 2009: A chance for a restart
Way to quality
Municipal woes
Home for everyone
Arch. Georgi Nikolov: Investments to be made in accordance with the property quality
Valeri Atanassov, executive director of Soravia Bulgaria: We are positive that new industrial and office projects will be needed
Tsonko Tsonev, Mayor of Kavarna: Better synchronization between municipalities and the state is needed
Evgeni Vasilev, general manager, Arco Real: Faster administrative services even at higher cost
Mihail Chobanov, general manager, Bulgarian Properties: Residential policies should stimulate young people and keep them in Bulgaria
Tsvetelina Taseva, executive director, Address Real Estate: State interventions should be precise to the maximum level
Toni Tonchev, general manager of development company Torin: Let’s take advantage of the crisis and put the branch in order
Mauricio Mesa Gomez, regional director, Bulgaria and Romania, Hercesa Internacional: VAT on property in Bulgaria is too high
Stefan Sharlopov, owner of Sharlopov Hotels: We have to be creative in the time of crisis
Bogomil Manchev, executive director of Risk Engineering: Completing large-scale infrastructure projects will bring good results.
Kalin Peshov, executive director of Glavbolgarstroy: In one-year time the market will stabilize
Lachezar Bogdanov, economic analyst, Industry Watch: Reforms to facilitate investment have to continue
Georgi Angelov, senior economist at Open Society Institute:Reasonable macro policy is what prevents economies from serious crises
Rosen Plevneliev, general manager of Lindner Immobilien Management:Factories have to come to the front