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British Should Be Careful When Investing In Property In Bulgaria Agents

Investment in British property offered higher return rates and lower risk than a similar deal concluded in Bulgaria, representatives of the British consultancy agency Assetz said.

On Friday October 27 the agency presented research on the property investment opportunities in Bulgaria, Bulgarian news agency BTA reported.

In the past months the situation in Bulgaria began to change. The annual credit growth decreased significantly from 36 per cent in 2005 to 13.9 per cent in September 2006.

Prices of property located in attractive regions, like Bansko winter resort, decreased during the second quarter of 2006, agents said.

Over-supply furthered competition between property owners, which also affected prices. Bulgaria’s rapidly developing tourism sector could not cope with this over-supply, Assetz analysts said.

Returns from investment in Bulgarian property fell down from 116 per cent in 2005 to 35 per cent in the first nine months of 2006.

The British property market was experiencing steady growth, Assetz analysts said. Britain was currently surpassing the Bulgarian investment return rates, the report said. In Britain the figures reached 50 per cent.

At least six more months would be needed to analyse trends on the Bulgarian market and to come up with long-term predictions, Assetz said. Bulgaria still featured among the top property investment destinations but fast profit opportunities were decreasing, analysts said.