Property demand crisis hits Bulgaria

For the country of Bulgaria, which is trying to steal investors and property developers away from Spain, there is a sort of problem and struggle brewing in that part of the world. In fairness, the country of Bulgaria has been attracting investors and developers for two years with its promise of low prices, good returns and a growing holiday rental market.

The country’s Real Estate and Investment Forum (RINFOR) found out that by the end of 2005, the country would have reached one billion in real estate transactions and property development in Bulgaria. Apart from this, speakers who participated in the forum said that foreign direct investment (FDI) would have a percentage of about 25 percent in the real estate sector if all the property flows to the FDI by the year 2005.

A total of 900 million euro was accumulated for the volume of real estate projects, including land purchases, construction works, and transactions. This happened in the first months of 2005 only.

But apart from these positive feedbacks in this country, there have also been some negative views on the impact of the real estate sector in Bulgaria in 2006. There were also some exaggerated constructions of some holiday resorts in the past two years because of the lower return on investment level, which large potential investors are not likely to bite at and which could turn them off.

There were some holiday destination owners, because of the noise and the dirt, who decided to change the course of their trips, happening during the summer season in 2005. Surprisingly absent in this part of the town are the German tourists, which make up most of the foreign visitors to Bulgaria.

There have also been offers for sales of hotels and other holiday properties but not much signing going on – a sign that there has been a crisis in the midst of it all.

Posted on: Bulgaria

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Property demand crisis hits Bulgaria

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