As a result Bulgarian banks are introducing stricter requirements on applicants seeking loans to buy property in Bulgaria's bigger resorts, including Bansko and Slunchev Bryag (Sunny Beach).
It means that foreign investors interested in buying property in Bulgaria and applying for loans from local banks are increasingly being asked to show their credit history for a period of up to six years. 'Banks are wary because of the sheer number of developments,' said Tanya Yakimova from Bulgarian Home Loans, a British consultancy firm that focuses on advising foreigners.
In Albena on the Black Sea developer Albena AD said it was stopping work on new builds as it has been found that many of the hotels in the resort need to be torn down as they are outdated and architecturally unattractive.
Even one of the newest, the five-star Flamingo Hotel with luxury suites and studios, is now regarded as not meeting current standards. Construction work will resume only when a general development plan for the resort is approved, as the company intends to seek the advice of foreign architects, a spokesman said.
In Sofia the Mayor, Boyko Borisov, has issued a ban on new buildings in the Mladost Quarter for one year. The ban is in response to residents of the district, who complained and protested about the poorly planned and unchecked growth in their part of the city. The mayor's order includes a ban on issuing new permits in addition to construction, although projects that are currently under way are allowed to continue.
Now Sofia's chief architect Petar Dikov is working on a new master plan to take concerns into account. Drawing up the new planning strategy is expected to take six months.
Meanwhile the Mayor said he would not rule out further bans on new construction on other areas.
