01.8.2007

Number of Russians investing in property in Bulgaria increases

When it comes to buying holiday properties, Russians have been opting for the Balkan countries, especially Bulgaria and Montenegro, Gazeta.ru reports, as quoted by money.bg.

Though Spain, Turkey, the Czech Republic and Cyprus are typical destinations for Russians, this year Montenegro and Bulgaria have become new hotspots.

The two destinations each currently attract 20 per cent of the overall property interest of Russians, respectively. Compared to the first half of 2006, Russian interest in buying real estate in Bulgaria and Montenegro has almost doubled, according to money.bg.

Russian property investors rank second in the volume of their investments in Bulgaria, after British investors.

Russian investment in Bulgaria totals 70 million euros, of which 14 million have been invested in real estate, according to the InvestBulgaria Agency, a state body that aims to encourage investment in the country.

Some of the reasons for increased interest in Balkan holiday properties is the "mild investment climate" in the two countries and local hospitality.

But holiday property prices are steadily increasing.

Two years ago the price of a holiday villa in Bulgaria was between 600 and 800 euro per sq m. Now the same properties would cost between 1 000 and 2 000 euro per sq m.

Sunny Beach and Golden Sands resorts are the most profitable in Bulgaria, according to the Russian media.

Those who prefer more picturesque and quiet places go to Bulgaria's Balchik (North seaside) and Sozopol (South) or the Montenegro's Bay of Kotor.

Source: www.propertywisebulgaria.com