Bulgaria is one of the both most – risky real estate markets in Europe, and every fifth Bulgarian building company is in bankruptcy. The unfinished buildings are everywhere, and the foreign clients can suffer from this, says analysis of the Russian media Commersant.
The Russians are tired from the housing problems in their country and search for properties abroad. Very ofter the rates in Europe are cheaper and the quality is better than in Russia, but they meet a lot of problems too, especially in Bulgaria.
Bulgaria, Spain and Montenegro, along with popular tourist destinations are also places where Russians like to buy properties. On other side, these three countries belong to the risky group, where the buyers must be aware, says Commersant.
In the period between 2001 and 2008 the building in these countries was very intensive and the people were buying properties still on the phase of project. But with the beginning of the crisis the deals stopped. The banks preventively stopped the credits to the building companies. Without financing, many of them could not begin the work on ever the already sold out properties.
Russian experts advice potential clients who intend to buy in Bulgaria and Romania to be careful. They must investigate the financial condition of the company, the comments in Internet, and the finished projects. The main sign for entrusting a building company is the extend of experience in the real estate market.