CHEAPER LAND BY THE SEA
The price of the land by the sea has dropped. Because of the high prices of the land by the coast and the refusal of the banks to finance holiday developments, many investors used to accomplish smaller projects according to Nikolay Pehlivanov, the executive director of Green Life. Now they are worse hit by the world recession. Because of failed investment, the banks refuse to finance such projects and that is why the purchase of small plots of land by the sea has stopped. At the moment there is only demand for big plots of land for holiday developments with suitable infrastructure.
The prices of luxury developments have increased by 15% for a year, despite the property slump. After the British clients have pulled out, the small investors are on the verge of bankruptcy. Brits can hardly repay their mortgages and Bulgarian banks refuse to lend them money. That is why many of them lost their properties and their first instalments. Subsequently the investors had to re-sell the apartments. Seaside properties from the lower price brackets now sell for 600 Euros per square metre.
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Category: Bulgaria, Property | Tags: Bulgaria, land, prices, Property, sea Comment »