Bulgaria property market lacks foreign investors

Fresh research shows that the once booming Bulgaria real estate market is struggling, amid a dearth of overseas property investors. 

The latest data released by the Bulgarian National Statistical Institute (NSI) reveals that Bulgaria property values fell by up 28% in the third quarter of 2009, compared to the same period last year.

Much of the new Bulgarian housing stock that has come onto the market in the past year or so has failed to sell, due to a significant reduction in the number of people seeking to buy a home in Bulgaria, particularly from overseas.

Dubai property agents report that the slump in demand has led to a drop in the liquidity available to buy properties in Bulgaria.
Foreign investment in the Bulgarian sector accounted for almost £1.8 billion between 2006 and 2008.

A spokesperson for Address Real Estate in Bulgaria has estimated that the overall fall in Bulgaria property transactions this year dropped by around 35% compared with 2008.

Although there are signs that the market is improving, Bulgaria home prices are generally expected to fall further in 2010.