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Collapse of UK based Bulgarian property agent leaves investors in the cold

Bulgarian Dreams, which has a high number of customers from Ireland, has ceased trading, shortly after it featured in a critical television documentary.

The company has blamed 'extraordinarily difficult economic conditions' for its problems but it was 'struck off' by the Association of International Property Professionals as long ago as January 2008.

The AIPP said it expelled the company for breaching the association's code of conduct. At the time, Bulgarian Dreams claimed it had resigned some time earlier.

Sofia-based lawyer Milen Hristov is filing claims on behalf of aggrieved customers and is acting on behalf of British and Irish real estate investors.

Bulgarian Dreams marketed a number of developments in Bansko, Pomporovo and other Bulgarian locations.

Bulgarian apartments have been very popular with Western property investors who were looking for low-price entry into the overseas property market and fast growth rates.

But recently an oversupply of apartments on the market, together with the downturn in property markets in general have seen demand plummet and prices fall with many investors left apartments that are hard to sell.

Overseas property consultant Diarmuid Condon said that a lot of investors have properties that were supposed to have been completed by now but are not.

'Bulgarian cities are doing okay, but the resorts where Irish investors have bought are like ghost towns. Building has stopped, apartments aren't selling and developers can't raise finance,' he explained.

Bulgarian Dreams advertised itself as a specialist real estate agent with 'unparalleled local knowledge' of the local property market. However, some customers complained about the non-completion of developments and missing facilities that had been promised.

The company said the problems had nothing to do with it and referred customers to the development companies.

Last year, it abandoned plans to build a €100 million Black Sea resort with an Arabic theme, which had been criticised by environmentalists and architects in Bulgaria.

Earlier this week, the company featured on BBC's Watchdog programme, which said it was aware of 80 customers whose apartments remained uncompleted.

A statement on the company's website says; 'We regret to inform our customers that following the extraordinarily difficult economic conditions we have had to cease trading. All existing customers who have previously purchased property should refer directly to the development companies in Bulgaria, none of which are directly affected by our closure'.

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