Bulgarian market slows but prospects good
By: dominic whiting | Posted: 07th November 2006
New research from a leading British property investment firm suggests that property price increases in Bulgaria have slowed. The report by Assetz shows annual price rises dropped from a nationwide average of 36% in 2005 to 17.8% for the same period this year. This is partly attributed to an over-supply of properties in the most popular areas, such as Bansko and Sunny Beach, which have experienced an unprecedented building boom. Property consultants Colliers International report an amazing 152% jump in the number of new properties available in Bansko since June 2005, with 22,500 units in various stages of development in the coastal resorts.
Despite the slowing of price increases, and the end of dramatic over-night returns, investors continue to view Bulgarian property as a good long-term investment due to the country's forthcoming entry into the EU and its growing popularity as a tourist destination. Investor confidence in the market was illustrated by the entry of several large international players, with Deutsche Bank recently announcing investments of €65 million in two residential projects in Sofia, while the US-based real estate franchise Century 21 unveiled plans to open up to 70 offices in the country over the next two years.
Stuart Law, managing director of Assetz comments: "Bulgaria is facing a period of readjustment after huge initial foreign investment. While longer-term investors are still set to benefit over the next five to ten years, as low cost property continues to attract holiday home buyers, there are no longer instant returns."About the Author
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Tags: managing director, stages of development, long term investment, property investment, term investors, price increases, home buyers, holiday home, coastal resorts, investment firm, tourist destination, sunny beach, century 21, foreign investment, deutsche bank, property consultants, investor confidence, sofia, residential projects