Not Much Good News for Property in Bulgaria

There was a time, prior to EU entry, when the Bulgarian property market could do no wrong.  Speculative investors were cashing in on the attraction of the Black Sea coastline and the appeal of the mountain ski resorts as fast as budget airlines were opening up routes to this emerging market in Eastern Europe. 

Then came EU entry and profitability started to wane, and now it seems that there’s not much good news for property in Bulgaria.  Bulgaria has had its EU funding suspended for being allegedly a corrupt country, interest in the nation’s real estate market has declined and a damning article in the Irish Independent has warned would-be buyers off Bulgaria altogether.

Should Bulgaria have been allowed into the European Union in the first place, that’s the question that many are now asking?  After all, the evidence was already there that corruption and Mafia activity in the nation would undermine Bulgaria’s position in the short-term, and undermine it it apparently has.  According to the Irish Independent, dodgy tax dealings and under the counter payments are practically par for the course for anyone buying a property in Bulgaria.

They go on to insinuate that many buyers even have to face extra payments before delivery of a property is guaranteed and that they are therefore effectively held to ransom when it comes to getting their hands on that which they have rightly paid for.  Damning condemnation of a nation’s property market indeed.  It’s no wonder that Rightmove Overseas has reported a 13% drop off in terms of online searches for property and property information in Bulgaria then.

Adding to the woes of the residential real estate market in Bulgaria is the news from Cushman & Wakefield that Bulgaria’s industrial and logistics property market sectors are over priced.  In a table of nations with attractive market sectors for investors to consider, Bulgaria ranks third from the bottom, dogged by excessively high land prices and resultant expensive rental rates.  The only saving grace is that labour in Bulgaria is low cost which can bring down costs a little bit.

So, as you can see, not much good news for property in Bulgaria at the moment then, and we can’t say we’re surprised.  It isn’t a particularly dynamic nation and its tourism market has only emerged so far before seemingly stagnating.  I mean, would you want to go on holiday to Bulgaria when you could go to Croatia or Montenegro for example?  No, and neither would most other people.  So, if you’re looking for somewhere to invest in property, look somewhere other than Bulgaria.

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