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bulgaria property badly bruised but alive

News Posted On: 23 July 2010

A recent report has revealed how Bulgarian banks are attempting to bring foreign buyers back to the country's property market, by making more loans available. The report said that the move has led to Russian buyers replacing Brits as the dominant force in the market.

Bulgaria has been one of the hardest hit markets of the downturn, when foreign demand collapsed, prices collapsed and this has left a stain on the market by proving the critics were right -- a stain that Bulgarian agents will find it hard to remove.

A big help would be to find a bottom in the price slide Bulgaria has experienced. According to the index of global estate agent Knight Frank in Q1, Bulgarian property prices were down over 17% in the space of a year.

However, the decline is showing signs of slowing. The first quarter index shows prices down over 4% in the 6 month period, and 2.3% in the quarter. Comparing that to the index in Q4 2009, we can see that prices fell 6% in the six month period, and 1.9% over the quarter. In that index prices were down over 26% on the year.

In all honesty it will probably be many years before Bulgaria sees anywhere near the level of foreign demand that it saw during the last boom. But the same is true of pretty much every country in the world; overseas property is very much driven by cycles.

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