Crisis Brings Russian, Arab Investors to Bulgaria’s Real Estate Market – Report
The global financial crisis will serve to attract more Russian and Middle Eastern investors to Bulgaria’s real estate market, according to the Russian online edition rambler.ru.
The reason for that is that the financial crisis is forcing the investment companies in Bulgaria to freeze or delay the execution of a number of real estate projects. The lower prices are expected to attract primarily Russian and Arab clients.
The article points out the value of recreation real estate deals in Bulgaria has already declined by 10%.
In addition, the Bulgarian Land Development firm is reported to have postponed two of its projects in the Black Sea town of Kavarna and the mountain resort of Borovetz. Black Sea Property has terminated the execution of a project in the sea resort of Tsarevo, whereas Bulgarian Property Development has discontinued its investments in the mountain town of Bansko.
The director of the Green Life investment company Nikolay Penlivanov is quoted as saying that a number of speculators were abandoning the Bulgarian real estate market.
Some 50 000 of holiday homes are on sale along Bulgaria’s Black Sea coast, according to the article, which also points out that the recent sale of one of the largest mall in the country City Center Sofia brought to the vendor Equest a profit of only EUR 7,5 M.