Britons Neglect Experts Warnings And Buy Property In Bulgaria Report
The Bulgarian property market continued luring British, despite agents' warnings that exaggerated positive information was being presented, Assetz said.
Neil Lewis, head of Property Secrets, said that Bulgaria's property market was oversupplied, but British still purchased.
As early as 2005 Property Secrets warned investors to avoid investing in Bulgarian coastal and ski resorts, Lewis said.
When there [is] as much hype as seen about Bulgaria, my advice would be to... conduct comprehensive research and due diligence before committing, he said.
Bulgaria's EU accession helped the country be pronounced 'the new Spain for jet-to-let investors,' but in 2006 the situation slightly changed, Assetz said.
The Knight Frank Global House Price Index showed that property prices raised by 19 per cent in the third quarter of the year but the decrease was great as compared to the 32.1 per cent raise registered for the same period in 2005.
Lewis also said that investors that had purchased property without paying attention to the poor rental and resale markets lacked exit strategy.