There is more than enough property for sale in Bansko, but interest in buying any is dwindling fast, according to a report in a Bulgarian newspaper.
The property market in the mountain resort town has been at a standstill since the beginning of 2007. Investments worth millions were blocked, Pari daily reported.
Real estate agencies were already closing their offices in Bansko because of lack of demand, the newspaper said.
Investors are finding themselves forced to cut prices to the unusually low levels of 500 to 900 euro a sq m.
Locals who received property as compensation for land sales but are failing to earn sufficient revenue from rents, are also offering properties for sale, further saturating the market.
The area around the town of Razlog near Bansko is also seeing demand decline. Agricultural land near the famous golf course is being offered at 20 to 50 euro a sq m, but no one wants to buy it. The asking price for residential properties in the area is 1200 to 1600 euro a sq m, but they too remain unsold.
The number of apartment construction permits issued has decreased for the first time in the past two years. Some investors are holding off from starting to build, even though they have already received permits.