Bulgarian property investment woe
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News on Bulgaria
14 May 2008
Bulgaria’s property market continues to face testing times, as it reaches saturation point and an oversupply of residential stock.
A growing number of Brits are finding it difficult to offload their Bulgarian properties , due to the fact that supply is far exceeding demand.
An added problem is the fact that many Bulgarian locals have been priced out of buying Bulgarian properties at the top end of the market, and so prospective vendors are reliant on selling to foreigners.
However, the number of overseas nationals – Brits in particular - buying property in Bulgaria has dropped significantly over the past year or so, as Bulgaria is by and large no longer perceived to be an emerging property market.
Paul Owen of the Association of International Property Professionals said: “It has had a free rein as the emerging market for a couple of years but nowhere (in Bulgaria) is there an emerging market.”
Furthermore, research conducted by property analysts shows that Bulgaria’s economy faces uncertain times.
In 2007, foreign direct investment (FDI) rose by 30% compare with 2006 yet, it only accounted for 92.1% of Bulgaria’s current account deficit, compared to 110.9% in 2006.
