Bulgaria is regaining its popularity with British real estate buyers, according to the first quarter results of major UK portal Property Abroad. Bulgaria became a preferred destination during the real estate boom, but credit crunch in 2008 and the sudden oversupply on the local market have altered market dynamics.
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Still, Bulgaria has managed to reclaim some lost territory, according to Property Abroad director Les Calvert. “Not a major jump by any stretch of the imagination, but for us, immersed in the industry, watching and reading the negative press about Bulgaria and seeing thousands of British buyers rushing to sell-up, this is quite a pleasant surprise for us,” he said.
Such is the story of Carl Froch, World Boxing Council super middleweight champion, who bought property in Bulgaria from Joe Upchurch, managing director of Aston Lloyd.
Froch has said that his purchase of property in Bulgaria was “just as satisfying as delivering a well-placed left hook”, and it is likely to prove a lucrative one, as well.
“What is the point of having money in the bank which is earning nothing?” said Froch, 31, who hails from Nottingham. “I have been investing between 8800 and 44 000 pounds sterling in property in Bulgaria and Turkey over the past 12 months.”
Froch has poured money into small flats with the intention of renting them out to local residents, rather than seasonal holidaymakers.
According to the Daily Mail, in 2008 revenue generated by tourists rose by 8.4 per cent over the previous year, with demand from foreign visitors and Bulgarian nationals expected to remain stable in 2009, particularly along the Black Sea coast. The healthy forecasts are attributed to the advertising campaign backed by the Bulgarian Government, worth the equivalent of 3.5 million pounds sterling, meant to promote tourism.
“The rise can be accredited to Bulgaria's economic performance: Bulgaria is now one of only four European Union member states forecast to avoid recession this year, and forecast to do so in the most impressive way; strong growth with a firm handle on the budget deficit. That and the low-prices of course,” analyst Julie Liddle said, quoted by Property Abroad.
The British based firm is currently in the market in Bulgaria, advertising hundreds of real estate for rent, sale, resale and off plan, available for less than 10 000 pounds sterling.
Ross Elder, managing director of holidaylettings.co.uk, was quoted as saying by the Daily Mail: “Inquiries for Bulgaria in the first quarter of 2009 are up nine per cent. It's a fantastic holiday option if you are seeking value for money on accommodation, flights and food.”
Simon Conn, a property consultant for the 58-room four-star apartment hotel in Kostinbrod, close to Sofia, where Carl Froch has invested in a suite, has said: “In good city locations, such as Sofia and the better-quality coastal developments, there are long-term possibilities.”
Source: propertywisebulgaria
