New research from a leading British property investment firm suggests that property price increases in Bulgaria have slowed. The report by UK-based Assetz shows annual price rises dropped from a nationwide average of 36% in 2005 to 17.8% for the same period this year. The company partly attributed this to an over-supply of new properties in the most popular areas, such as the mountain resort of Bansko and Sunny Beach on the Black Sea coast, which have experienced an unprecedented building boom. Indeed, 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.
Dominic Whiting is a journalist and publisher of the Buying in Property Guides. www.buyinginguides.info
