Oh, oh, oh, sometimes our very opinionated streak cannot be quashed and reined in for the sake of calm reporting – and today is one of those days when we have decided to let it all come tumbling out! Please forgive us…for we’ve just read some hysterical news from the Bulgarian property market that we just had to share with you.
Earlier this year we just about managed to bite our tongues and refrain from comment when the estate agents at Knight Frank placed Bulgaria in the top spot for property price gains in 2008. We stopped ourselves from pointing out what could be the potential irony of an estate agency with properties for sale in a slow and stagnant market such as Bulgaria’s talking it up…but now we cannot hold back any longer.
According to a press release issued by yet another estate agency, the perceived ‘crisis’ in the Bulgarian property market that’s allegedly seeing record numbers of Brits and Irish trying to off-load their ski properties in resorts such as Bansko, represents a massive opportunity for would be buyers! Indeed, there are seemingly all these panicking British and Irish who own properties in Bulgaria heading out to put their properties on the market and they’re willing to accept any old price just to be shot of the apartment shaped albatrosses around their necks. And what all this means – according to this really funny press release we just had the great fortune to be sent – is that all those buyers queuing up to leap into the market can get their hands on bargains as distressed vendors price their properties very cheaply just to get rid of them!
Fascinating! Because of course there are so many buyers lining up to scoop up bargains in Bulgaria, because of course all these panicking vendors are wrong and the buyers know a secret, and that is that Bulgaria is still such an amazing place to invest! Gosh, aren’t those vendors so silly to be desperately trying to get rid of their investment properties in Bulgaria – after all, Knight Frank have said that : “Bulgaria continues to confound market fears of oversupply and has so far proved immune to the deceleration seen in much of the continent…Since Q2 2007, Bulgaria has been the best performing location in the Knight Frank Global House Price Index. While the rate of growth in the price of flats was lower than in previous quarters, it was nonetheless maintained at over 30%.”
I’m sorry, we just don’t buy it. There are just not the fundamentals in place to support the speculative type investment property purchases that Bulgaria witnessed for many years. There has been over development of shoddy property stock that has devalued the whole market, and even the quality properties for sale and that have already been bought have reached a pricing plateau. You can add to this the fact that those who might have been tempted to the market are now more likely to be worrying about their falling equity back home in the UK, in Ireland, Germany and even Russia, and all in all we just cannot see how someone in their right mind would honestly believe that anyone would see the distress selling of property in Bulgaria as ‘an opportunity.’ Sorry, it just doesn’t wash – very funny all the same! Thanks for the press release.