Bulgaria, Northern Cyprus, and Turkey Property Markets could be hit hard by EU vote

Eastern European states Bulgaria, Cyprus (north), and Turkey are popular with British and Irish property market investors. However, these countries could be hit hard by the troubles over the French and Dutch EU ratification/ referendum of “No” votes. Countries already in the EU bloc, like Southern Cyprus, are safer.

Votes by the Dutch and French people are clearly an indicator of EU excessive growth in its membership. There were warnings from experts that countries not yet part of the EU could be left out in the cold could experience severe effects on their economies and property markets.

Stuart Law of Assetz International said, ”Turkey was supposed to start negotiations in October 2005. It is clear now that it is in greater danger of not flying off the ground as several EU members are against Turkey joining.

“In addition, Bulgaria and Romania have not signed a treaty to join in 2007. Unless it is ratified by all 25 EU member states, these countries cannot advance – and only two have done so far. These two countries are suffering from corruption and other problems. The property in Bulgaria market is a little bit on the ‘wild-west’ at present. If these issues are not dealt with then membership could be off the cards. The property market would then go into a free fall, especially for Bulgaria, which showed strong gains early on in house prices.

“Investors should treat property investment in these EU applicant status countries as highly speculative and be aware of loose claims made by property agents on the guaranteed returns that could be made. Don’t put all eggs in one basket with any kind of investment, especially property where the resale market could dry up overnight and leave one high and dry. The three highest risk property investment areas are now Turkey, Northern Cyprus, and Bulgaria.

“Investors looking for excitement and capital gains without high risk should look at countries like Southern Cyprus, which are full of members and well on the way to membership in the EU in 2007 or 2008. This is driving prices up and although early gains have already been made, there is plenty more to go. It’s like having the benefit of hindsight and seeing the market in Spain or France a few years ago and buying then. Things are so much certain with Cyprus yet the peak in prices is some way off. Assetz Southern Cyprus investor seminars and visits organized by Assetz Cyprus have suddenly started selling out quicker than normal. Perhaps people have already spotted the warning signs in other countries and started a flight to quality.”

Posted on: Bulgaria

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Bulgaria, Northern Cyprus, and Turkey Property Markets could be hit hard by EU vote

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