A recent article in Capital newspaper discusses the reasons that led to decrease in real estate sales in the last year. It is not a secret that after the initial boom currently there are about 20 000 apartments for sale in Bansko and over 200 000 on the Black Sea. Their number is increasing every day while the sales are going down more and more.
Funnily, one of the companies that contributed the most for this – BulgarianProperties is asked to analyse the situation explain it with the mass overbuilding in the main resorts. However, it was BulgarianProperties who were selling off-plan properties so off the plan that some never materialised and this customer’s attitude is one of the main reasons for the mass decrease in sales. There are too many stories of “successful investments” recently.
The main conclusion of the article is that currently the supply is exceeding dramatically the demand for properties in Bulgaria and now especially after the crisis on the real estate market in USA probably it is not so wise to invest in real estates. It is again no secret that most of the projects are built with financing from Banks and for their repayment the developers rely entirely on the sales so soon the bubble will start to shrink. Who is about to be caught inside? We’ll see…
