Purchase of property in Bulgaria exposes investors to the risk of losing money, maltastar.com reported.

The report warned Maltese investors that purchasing land and property in Bulgaria is a dangerous trend because the property market is getting saturated and property prices are expected to start decreasing soon.

Bulgarian government announced that it will start tracing out illegal constructions and property, which flourish in the country. A total of 25 per cent of all property in the country has no permit according to Bulgarian authorities quoted by the website.

Real estate advisor Alyona Frendo said that it was dangerous to buy property only based on information provided by investment companies.

Frendo said that more research should be done before purchasing.

Foreign companies and citizens’ purchase of property in Bulgaria totals 310 million euro for the first three months of 2007, a 63 per cent increase compared to figures for the same period of 2006.