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Wealthy Russians ‘saving’ the property market in Bulgaria

Developers have realised that the steady stream of property investors from the UK and Ireland who have invested massively in the country's ski and seaside resorts has gone for the foreseeable future.

But an increasing number of Russians in particular are still eager to buy. A survey reveals that Scandanavian and Romanians are still investing in property too.

'This Russian invasion is a pleasant surprise. Wealthy Russians are coming from Moscow and St Petersburg looking for spacious apartments,' said a spokesman from Green Life Property Development which conducted a survey of buyers.

It found that Russian clients made up 90% of buyers. They are buying purely for lifestyle, not to rent their property out, the survey also found.

The other main group of buyers are less wealthy investors seeking lower priced properties to rent out.

Those who bought property two to three years ago have experienced good returns of up to 40% on their initial buying price. But those who bought in the last 12 months have been disappointed, the spokesman added. Many of these investors are now seeking to sell.

Developers need to learn from the experience of the last year, the survey concludes. 'The withdrawal of potential British and Irish clients puts many developers seeking quick profits in an unfavorable position, but the tendency will help the property market to regulate itself. Only the most reliable investors with a clear business strategy will be able to stay afloat in the midst of advancing property market crisis,' it says.

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