Coastal Construction Will Push Down Bulgarian Property Prices

Spending on property maintenance on Bulgaria's Black Sea coast during the past year has risen at a pace faster than the rate of increase in real estate prices. In one year, the price of property in the Varna region increased on average by 25 per cent, and maintenance expenses by 29 per cent. Specialists warned that excessive construction will push down property prices, making ownership unprofitable.

Tourism agency analysts said that Bulgaria has always been and will remain a destination for less wealthy West European tourists. Some of these foreigners might be interested in buying Bulgarian property. But if the tendency of high expenses continues, owners might be forced to sell their new apartments. Bulgaria remains an attractive real estate destination. The property sector has strong prospects, and transactions are likely to continue at the same frequency in the next year. Most of the investment, however, will be focused on business and industrial parks, rather than housing, Sega newspaper reported.

German tourists remain the biggest foreign group that visits the Bulgarian coast. The average tourism growth rate is 13 per cent, tourism agencies analysis shows.

Source: The Sofia Echo