Boom and Bust? Not yet.

The unprecedented scale of Bulgaria's property boomideal place for out-of-country land purchases.
has led developers to take the bull by the horns andThe difference between the stereotypical Russian
build block after block of apartments, in turn drawinginvestor and the English one is simple, the English
investment hungry tourists to snap up options in hotbuyer typically has accumulated their money from
spots for sun, skiing. The sheer weight ofsavings or has freed up funds by re-mortgaging their
development has led many analysts and particularlyhome. They are seeking to invest in a property with
pessimists to warn constantly of an ensuing crash ingood value and which can be used as a second
the market. A distinction, however, should be drawnhome. The emphasis, however, is placed on letting it
between the vacation areas that are driven byto other tourists and eventually selling later. The
speculators and certain cities whose markets areRussian investor, after decades of economic
experiencing more organic internally driven growth.restraints and uncertainties, has a new found financial
While sales have slowed and prices stabilized, as onestrength and is seeking to invest his Rubles in
would expect in a maturing market, the anticipatedsomething representative of the new standard of life
and well publicized crash has not arrived. British andand status they are seeking to register. This goes
Irish punters still lead the way with investments intowith luxurious, expensive, beachfront apartments as
the Black Sea resorts and ski destinations. There is,a main focus.
however, a new phenomenon emerging with force:The Russian influx should not be overestimated, as
deep Russian pockets.their buying numbers are still outweighed heavily by
Since the economic crisis of the 90's, Russia has seennorthwest European buyers. None-the-less, they are
a new boom - largely led by petroleum and naturalmaking their presence felt. It will take time for the
gas prices - and is coming to the fore as a newbalance to be tipped in their favor, but the important
financial superpower in central and southern Europe.point is that the trend appears to have staying
In particular Russians with formidable purchasingpower.
power are looking to invest in seaside holiday homes.This will not steer the market away from its long
Previous connections from the cold war maketerm stabilization. The rate of issue on construction
Bulgaria a popular destination among Russians, onepermits has slowed drastically and even in some
they feel comfortable with due to the still relativelyresorts, prices have stagnated; but with the market
large number of Russian speakers. This is combinedseemingly stabilizing for now and with the recent
with the relative proximity and lack of warm, sunnyinflux of Russian funds, it's not all boom to gloom.
beaches in their own country to make Bulgaria an