Sep 09, 2010
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Oct 31, 2006: Beware Bulgaria, property investors warned b? Jennifer Hill
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Oct 31, 2006:
Beware Bulgaria, property investors warned b? Jennifer Hill
LONDON (Reuters) - Overseas property investors should b? wary ?f Bulgaria ?s market growth collapses and rental competition hots up, but prospects still look good in France and Poland, according t? ? report this week.
Total annual returns ?n Bulgarian property have plummeted t? 44 percent fr?m 104 percent three months ago, according t? th? latest quarterly investment tracker fr?m property investment firm Assetz.
Annual house price growth in th? country has slowed t? 17.8 percent fr?m 36 percent, with th? Bansko ski region showing price falls ?f 2.1 percent.
Property prices in Bulgaria ?s ? whole only grew 1.6 percent in th? second quarter, while th? oversupply ?f investment properties has led t? fierce competition f?r rentals.
Stuart Law, managing director ?f Assetz, said: "This is ?n interesting time f?r many overseas markets.
"Bulgaria is facing ? period ?f readjustment after ? huge initial foreign investment. While longer-term investors ?r? still set t? benefit over th? next five t? 10 years, ?s low cost property continues t? attract holiday home-buyers, there ?r? no longer instant returns t? b? made.
"An oversupply ?f rental properties is being aggravated b? stories ?f dishonest local management agencies, some ?f which ?r? reported t? b? letting properties and keeping th? cash."
House price growth in th? American property market has also slowed, th? data showed. It has fallen t? 10 percent per annum fr?m 12.9 percent in June, and is expected t? slow further.
www.reuters.co.uk
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