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UK investors tire of Bulgaria

In Bulgaria, home buyers are less interested in purchasing property in Bulgaria, specifically in Bansko. The city has been a UK hotspot for some time as a leading ski resort in the country. Over the last several years, property prices there have increased substantially, forcing UK buyers to look elsewhere for more affordable prices.

Property prices in Bulgaria have increased. But, the global credit crunch may be behind the lesser ability that the UK investor has. Property prices of the mid range, €45,000 to €90,000, have dropped considerably.

The figures do show the change in the market here. While property in Bulgaria is still selling well, it is not by the traditional UK investors. Instead, it is the Russians and Greeks who are investing heavily here.

According to the Financial Times, Hugh Fraser, part of the Sofia firm LS Property, said, "Our research suggests that only about 30 apartments were sold in Bansko last month and the buyers were Russians and Greeks." In comparison, just two years ago, some 500 properties were sold, mostly to Irish and UK buyers.

Now, property purchased in the last six months has show that most of the sales, up to 60 per cent, were from Russian investors. The Greek and Polish investors account for about 10 per cent. Only about 30 per cent is accounted towards British investors. Two years ago, 90 per cent of those investors were UK investors.