Generation Z Prefers Investing in Financial Markets Instead of Real Estate

Young Bulgarians are increasingly turning to financial markets instead of investing in property, according to the results of a European survey conducted by a global fintech company.

The survey, carried out between January and July with 1,000 respondents, shows that although 39% of Bulgarians still prefer investing in real estate, more than 40% of people under the age of 34 choose to invest in shares and exchange-traded funds (ETFs).

Experts say the rapid development of the fintech industry has made access to financial markets easier for young people. Financial instruments also provide greater flexibility compared to property investments and require significantly smaller initial sums.

Zdravko Pirinliev, Chief Investment Analyst at a licensed brokerage firm:
“With an investment platform, you can check your portfolio every day and see whether you’re in profit or at a loss. For the new generation, property is a cumbersome investment — if you buy a property for half a million leva and need 50,000 after six months, you can’t sell 10% of it; you have to sell the whole thing. With stocks and funds, you can sell at any time.”

Daniel Donchev, CEO of an asset management company, added:
“Financial instruments allow much greater diversification. They spread the investment across many components — companies, regions, and sectors — which helps reduce risk instead of concentrating it in a single asset.”

That is why, for the past five years, Yana has also chosen to invest in financial instruments. She notes that, compared with property, transactions in securities are instantaneous. She prefers the US markets, where there is a choice among thousands of companies, and says that investing helps protect her savings from inflation.

Yana Georgieva, investor:
“Every month I set aside a considerable part of my salary — I invest it in shares, ETFs, and cryptocurrencies. It depends on how the market is moving and what the prices are. It’s not difficult or complicated.”

Experts note that young people today are far better informed about the differences between financial instruments and how to use them. However, they warn that investors must be cautious about whom they trust with their money. The first step, they advise, is to check the Financial Supervision Commission’s website.

Daniel Donchev:
“Just as there are honest and competent managers, there are also those with bad intentions — and ultimately, fraud is possible.”

Zdravko Pirinliev:
“There’s a huge amount of information about financial markets. It’s easy to learn what an ETF or a share is, what the risks and trends are, and what the philosophy of investing means. At the most fundamental level, it’s not a complicated process.”

Experts also remind investors that there is always a risk of losing the money invested.