Bulgarian Coast Property Market Overview

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The Bulgarian coast has become a huge property investment disaster zone.

Promises of quick and easy money to be made on Bulgarian beach property attracted thousands of investors.

Developers were able to buy land and build very cheaply, yet due to the fact that locals were not buying developers had to sell via agents. And because the developers margins were so high they were able to pay these agents huge commissions.

These large commissions made agents greedy and also enabled them to spend large amounts of money on marketing and incentivise their sales agents extraordinarily well.

Due to corruption and lack of planning regulation developers were able to build thousands of apartments along the coast and sell them quickly to unsuspecting investors at very inflated prices.

This is an example of a classic investor driven market with few real fundamentals to support it. Thus now those thousands of apartments are now standing empty with no one to rent them and no resale market in which to sell them.

Whilst Bulgaria has a beautiful coast line and makes a pleasant place for a cheap summer holiday it does not mean it’s a good place to buy a property. Yes tourist number are increasing but many choose to take a hotel-flight package deal as they are cheaper and more convenient than trying to book a flight and apartment separately. Hence demand for apartments is very weak indeed.

Many investors are now left with hefty mortgages to pay and with little rental income to cover them (not to mention high costs). As the investors can’t sell their apartments either this is extremely painful situation to be in.

We strongly recommend you steer clear of most coastal investment locations at the best of times and in particular the Bulgarian coast.