Mixed messages - Sofia Echo
Mixed messagesSofia Echo, Bulgaria - Aug 1, 2008... Britons’ enthusiasm for buying foreign real estate may be waning. Reports in Bulgaria’s local press have cast a shadow over the real estate sector, ... |
Mixed messages - Sofia Echo Allegedly, bookings by Scandinavian tourists have dropped by 30-50 per cent on last year. Another report, from the Yavlena real estate agency, suggested that foreigners are looking to sell their Bulgarian property in increasing numbers. Any unauthorised reproduction or use of it is strictly forbidden. As for affluent buyers and holidaymakers, even Russian money people have style and class and go to the rich resorts in France, Spain and Italy and willn't be seen dead here.The truth. At least the British press aren't afraid to tell the truth about the credit crunch and recession. At the same time analysts say that this trend seems to have been encouraged more by the structure of original purchase deals and investors’ desire to cash in rapidly, than by fear of a property market downturn. British tour operators TUI and First Choice removed Varna from their list of destinations last year and Thomas Cook is reportedly considering doing the same before 2009. Bulgaria still keeps writing stories that it isn't happening, its a myth, everything is fine. But the promise for wiser long-term investors and traditional holiday homebuyers is as great as ever. CommentsComments by Dianne Hatton - 08:24 02 Aug 2008 I have read some good spin in the past but htis about takes the biscuit. For several years, industry insiders have told the Oxford Business Group that Bulgaria’s coast risked over-development and that short-term investors can pull out if the going got tough. However, this trend seems to have been encouraged more by the structure of original purchase deals, and a desire to cash in rapidly, than a fear of property downturn. In 2006, about 29 per cent of all real estate sales were made to foreigners – 67 per cent of them to Britons and 12 per cent to Irish. Many of the houses were bought off-plan (prior to construction) over the past two years and put on the market as soon as they were completed. People are selling purely because they want to try and get their money out because of the credit crunch and its crap. Reports in Bulgaria’s local press have cast a shadow over the real estate sector, particularly in the holiday property segment. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Resorts on the southern Black Sea coast around the city of Bourgas are reportedly suffering the most. Savills researcher Jacqui Daley speaking to the British press said, “We will see a return to the traditional use of the holiday home as a lifestyle choice, and that demand will actually rise in the near future.” The days of making a quick buck may be over. There's a global crunch and recession coming. This is partly due to over-development of the coast and fears that standards are being lowered in an effort to optimise short-term profit. This more affluent section of the population tends to spend a greater amount of money on property and holidays. Tour operators are stopping coming because its crap. With the UK reeling from an economic slowdown, the credit crunch and a domestic property slump, Britons’ enthusiasm for buying foreign real estate may be waning.
