I thought it was time to do a short piece on the Bulgarian property market.Some people may well think that there should be a question mark after the word 'market' but there you are.
Anyway, as most people are aware there are major problems of excess supply and low demand in all countries at the moment.Bulgaria is no exception.What has actually made it worse here is alot of speculative investment, principally from the UK. At the first sign of a recession the market was flooded with hundreds of properties that had been bought in 2003-2007,and naturally these properties could not sell.
So for the short term investor it's a real blow.For the medium to long term it's not a problem they can sit tight and, probably sometime in 2010 we shall see the market stabilise and maybe upturn slightly.
For the moment there are certain areas in Bulgaria that have been hit especially hard.There were problems of over supply and poor quality in Sunny Beach and the ski resorts even before the recession.The market in Sofia is also hard hit, I also noticed the other day that in Veliko Turnovo (one of my favourite places in Bulgaria) there has been a sharp decrease in prices, especially in the outlying villages.
In summary then, if you need to get your money back quickly you have a big problem.If you can sit it out, then you will see renewed capital growth.If you are someone considering investing in Bulgaria then the bargains are out there, just avoid ski resorts and anywhere where there is high density development of apartments.
Happy Hunting
Uncle
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