subject: Another Difficult Year For Bulgarian Real Estate [print this page] After that there would be a real estate Bulgaria boom in property investments. There is still no sign of the recovery that was predicted.
In the last three years there has been an almost total annihilation of property agents, property developers, mortgage advisers, and just about anything else associated with real estate Bulgaria. The property companies that did survive did so by reorganizing themselves and continued to operate on the Russian market. But even with that it has been suggested that the Bulgarian property industry shrank to about ten percent of what it was in the best of times.
Over the years of the property bonanza many investors tried to profit from the emerging property markets such as Bulgaria, Turkey, Egypt, and so on. In the case of Bulgaria it was the Sunny Beach that was the most desired investment spot.
Sunny Beach had everything to be successful; it was a well-known brand, good infrastructure, fantastic beaches, and an international airport. Then when the credit crisis hit the capital flow toward exotic property destinations dried up and left a lot of investors with properties they never intended to use or keep for an extended period of time.
So the dynamics that are now in play for the Sunny Beach property market suggests two things, the property prices have dropped up to fifty percent, and what demand there is for the property mostly comes from Russia. Russians are life style buyers and pay a lot of attention to details. If you own a piece of property that is off-plan or unfinished, a Russian buyer would have no interest. And any property that is not close to the beach would be a very hard sell, especially if there are properties that are within walking distance.
The outlook for real estate Bulgaria is not very promising at this point in time. The Russian demand seems to be stable, but there are not enough Russian buyers to offset the British and Irish sellers. When the demand is great buy the supply is disproportionate it will mean the prices will continue to fall. If you are looking to buy property this is a good thing.
The Black Sea coast of Bulgaria is beautiful with a moderate climate and a wonderful vacation destination. If you are interested in purchasing property for long term use this may be the ideal time to look for that perfect piece of vacation property.
