Real Estate in Bulgaria – A good time to buy ?

posted by Moishe Alexander

At the end of 2008 prices for Bulgarian property were up 11.7% from a year earlier and whilst this would be good growth in any other market, for Bulgaria it was a rapid slowdown. Prices rose 27% in 2007, 16% in 2006 and 37% in 2005 as Europeans and Russians rushed in to buy, prior to the accession of Bulgaria into the EU. The main areas attracting foreigners were on the Black Sea coast and in Bulgaria’s ski resorts, with the resorts of Bansko, Pamporovo and Borovets attracting a lot of overseas buyers. But as with most other countries, demand for property in Bulgaria is slowing. At the end of 2008, building permits were down 15% compared to a year earlier and in January of this year around 5% of Bulgaria’s real estate agencies shut down.

In 2007 Bulgaria was the fourth most popular destination for British overseas buyers and the number one destination for Russians, because of the countries strong economy it was also the destination of choice for a number of multinational companies who’s employees also helped push up prices. Things are different now and there is a definite cooling down of the economy and Bulgarian property prices are predicted to drop around 10% this year, mainly due to low demand.

But interest in real estate in Bulgaria is likely to continue and this year may well be a good time to buy as the market looks to remain relatively stable. Tourism in the country is also likely to help prevent the market from stagnating too much. A recent survey carried out by British up market store, Marks and Spencer’s’ Financial Services division recently listed Bulgaria as the cheapest place to take a winter ski holiday. With a three course meal costing around $9.00 per person as opposed to $40.00 in Italy and $56.00 in France and a bottle of beer costing only $1.20. The country is also seeing expansion of Budget Airline routes, so will be accessible to more people, another factor that continues to help property appreciation in Europe.

for more info:

http://www.expatdailynews.com/2009/04/real-estate-in-bulgaria-good-time-to.html

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