Drastic decrease in resort property deals sees Brits selling at a loss

15:01 Fri 01 Aug 2008 - Svetlana Guineva

A sharp drop in the number of sales of holiday homes on the Black Sea and ski resorts is expected by the end of this year, Pari daily has said, quoting various real estate agencies. However, it is hard to forecast because there are no unified statistics about the market. Lux Imoti (Luxurious Estates) expects to strike 30-40 per cent fewer deals on Black Sea properties and 80-90 per cent fewer deals on mountain properties. The Varna–based agency Foros, on the other hand, expects a decrease of only five to six per cent.

At the same time, British citizens, until recently the most prominent buyers of seaside properties, are trying to sell their bought-for-profit apartments. Luxurious Estates have revealed that most re-sale transactions are now rendered at a loss. If two to three years ago clients paid 1100 euro a sq m, for example, they’re now selling for 850-900 euro a sq m.

Real estate agents, however, are unanimous that the decrease in sales can be attributed to the receding tide of British buyers. They have been replaced by Russian, Scandinavian and Romanian potential property owners, but those groups do not buy on the same scale as British citizens, Foros manager Dobromir Ganev has said, as quoted by Pari daily.

Foros reveals that the average price of a holiday home on the east side of Slunchev Bryag (Sunny Beach) resort sells for 1650 euro a sq m. Luxurious Estates, on the other hand, have said that they are advertising properties for 2000 euro a sq m, but that actual transactions do not exceed 1100-1200 euro a sq m.

Both real estate agencies, however, register that property prices in the west side of the resort are now half the value they were several years ago. A holiday home there currently fetches 600 euro a sq m. According to the manager of Foros Sunny Beach office, the potential buyers of low-priced apartments are primarily Bulgarians.

Comments

Comments by mary jacobs - 14:50 02 Aug 2008
	Too many people have tried to jump on the bandwagon and there has been too much development at too high prices. The British have had their fingers burned.It is a pity investors interests were not better looked after. Rates of occupancy are nothing like those claimed - which is probably why people are selling. If you don't get the lets you can't pay the mortgage. Bulgaria needs to do more to encourage tourists. The potential is there - if betterr controlled.
Comments by Sandra Davis - 02:52 06 Aug 2008
	The drop in property prices might be a result of the experiences of british buyers as we have seen corruption by Bulgarian agencies, even theft after having been given "power of attorney" Which we do not reccomend, The dishonesty amongst bulgarian agencies in itself & once these incidents of misfortunes of british buyers circulate, people will go elsewhere to buy overseas property. Something has to be done about corruption in Bulgaria.