I’ve heard that there’s problems brewing with some investments in Bulgaria. There is a massive backlog of unsold properties in Bulgaria especial Sunny Beach and other coastal areas.
Has anyone got anything specific on this? Contact me by PM if necessary. What I’ve been told is not yet public info, so I can’t divulge. Seems somewhat similar to the problem in Tennerife that the Galway investors are caught up in.
The question now is how many of these guaranteed rentals will fail to deliver the rent. As there is oversupply in many places, and some of these places were horrendous to start with, the rent may not come through.
Anyone who bought anything in Sunny Beach, or any of the resorts nearby, in the last few years, is going to be in trouble with Sunny Beach investments. That place had more property shops than any other kind of shop when I was there 2 years ago. Property built in the middle of nowhere. The sunny season in Bulgaria is very short, unlike in the Canaries. People should have just bought appartments near the university in the capital city, for example, and that when the prices were low.
I can’t believe there is anything more to come out about developments in Sunny Beach than is already ‘out there’.
There’s the disasters with Bulgarian Dreams, Amba Sun, Platinum Developments and many more.
Loads of apartments for sale at 50% what people paid for them.
I agree, it was and is a disaster waiting to happen - and I have always championed Bulgaria as work and live there.
I estimate €5bn was invested in Eastern Europe from about 2000 onwards ( look at the post immediately prior to mine)
Budapest , Bulgaria and Krakow all sucked in phenonemal numbers of RoboPaddies . Robodpaddy even showed up in Vilnius and Bratislava and Bucharest . Robopaddy also invested in property funds rather than buy direct in some cases, eg this one for example .
If we look at Budapest alone they flogged at least 1000 units a year to Paddy @ €100k a pop between 2000 and 2006 when the currency collapsed , thats 7000 x 100k or €700m . Just one city !
Irish investors were 13% of the Bulgarian property market in 2006 (€9 billion total market in 2006), so if you take the period of 2004 to 2007 as being peak Irish interest then 5 billion would not be impossible between developers (don’t forget Michael Lynn) and buyers. I’m inclined to think that the figure for Irish people in Bulgaria is probably around the €2 billion mark since there would have been a lot of cash and life savings ploughed in there.
As for the rest of Eastern Europe especially Hungary… and not forgetting exchange rates …
Just heard about a former workmate who bought an apartment in Bratislava on the banks of the Danube. It is built by an Irish developer. The apartment blocks are many stories high. He’s on the 19th Floor.
The developer is controlling the management company and between management fees, electricity and water charges they’re charging €2450 a year in fees for his apartment.