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Property Funds Move Away From Bulgaria

Foreign capital that Bulgarian property attracted with the quickly rising prices is moving to other countries, offering different opportunities.

Companies that remain actively involved are ready to wait patiently and develop properties, while searching for strategic investors, Dnevnik newspaper reported.

Though the price of some terrains double-jumped in one year, a slowdown is starting to settle in. The price increase for office property and trade areas fell below 10 per cent, analysers said.

London produced some of the first signals for the changed tendencies. Several local investors declared losses from participation on the Bulgarian property market. The main reason according to some is the increased expenses.

Bulgarian property experts said a market, which attracts serious investment would sooner or later experience income increase limitations. The tendencies valid for foreign investors affect Bulgarian companies, as well.

Another development which strengthens is the depletion of attractive property offers. More companies are interested in such purchases, which rises the prices. Most seekers look for property offering investment return. Such real estate includes offices, trade and logistics centres, as well as completed vacation villages.