Bulgaria’s developers have tough road ahead

A recent announcement by a Bulgarian minister initially paints gloomy prospects for some of the country’s building firms. Mr Plevneliev, the Regional Development minister, expects around ten percent of such businesses to file for bankruptcy in the coming months.

As with most other countries globally, the value of real estate in Bulgaria has hit the floor. The market is flooded with over-supply & dramatically reduced investment means prices are likely to remain low for some time yet.

The problem facing developers is the prospect of having to sell at a loss & then being unable to raise capital for further construction, which of course is just not required.

However, the ministry is working hard to boost the industry & it’s hoped any losses may be halted by the government’s expanding road building projects.

Market recovery is slow, & investors seem to realise that a much longer term view is required, rather than short term big profit gain.

With prices on the floor, property for sale in Sunny Beach, Varna, Sofia, or wherever, still represent good value for money.