UK consultancy company TRI Investments warned potential real estate investors to avoid investing in European resorts such as those in Bulgaria, France and Italy.

The warning came after companies’ shares fell on the real estate stock exchange in Madrid, citywire.co.uk said, as quoted investor.bg.

TRI Investments managing director Chris Finch said that his company was initially enthusiastic about opportunities for investment in Bulgaria but afterwards found out that there was excessive construction along the Bulgarian Black sea coast. The same had happened in Spain, Finch said.

Property tax valuation in Spanish resorts had been too high for years. TRI said that other European destinations could also face drops in their property markets because of a combination of high inflation, oversupply and bureaucracy.

TRI manages the European Residential Property Fund, established in 2005. The company avoided the regions of Bulgaria, Spain and France and focused its investment plans on Bucharest and Prague. Both cities boasted professional business environments that acted as a market incentive.