Traditional temptations for investors in Bulgaria

Coastal resorts and ski areas lead a historical trend of the areas attracting interest from investors in Bulgaria, an expert has said.

Areas around the capital Sofia and regional cities including Plovdiv and Varna have seen a "noticeable increase" in demand, noted Chris Northam, managing director of Balkan Holdings.

A lack of snow in Europe caused disappointment for ski property investors in 2006 but improved weather conditions have been witnessed this year, he noted.

Investors should be wary that some areas of Bulgaria are witnessing overdevelopment, Mr Northam commented.

New buildings are being constructed too quickly in some areas and there is a risk of the country's property market becoming over-saturated, he suggested.

Over-developed regions lack the necessary infrastructure when completed too rapidly and the facilities then have to catch up before further waves of property development can take place, which can be off-putting for some investors, Mr Northam described.

The price of an average home in Bulgaria rose by 7.5 per cent during the third quarter of 2007, according to National Statistical Institute figures reported by the Sofia Echo.

Louise Shipway

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