British, Irish Property Buyers Sell at Loss in Bulgaria to Strike Deals in UK

Properties | June 27, 2011, Monday // 16:48|  views

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British and Irish property buyers, who purchased resort properties in Bulgaria during the boom years, are now willing to sell them at a loss to take advantage of the lucrative deals currently offered on the British real estate market, according to Dylan Cullen, founder of the Dublin-based real estate company Appreciating Assets.

Appreciating Assets buys real estate in Bulgaria from Irish owners and resells it to buyers from the former Soviet republics.

In an interview for, Cullen confirms that properties in Bulgaria still attract good buyer interest as long as they are adequately priced.

In his words, the company uses the services of Bulgarian real estate agencies, which resell the properties to Russian and other buyers, while it works directly with British and Irish owners.

Regarding selling prices, Cullen says that everything depends on the appraisal of the item's current market value without any regard for its initial acquisition price.

Cullen says that his company has sold real estates to owners who have made a profit form the investment, others have had a return on the investment, while still others have had to face a loss of up to 25%.

Despite that, in many cases owners are willing to close such sales because of the apt time for buying property in Ireland or Great Britain, he says.

According to Cullen, the British market is the only one in Europe to suffer from a housing deficit, with prices epected to climb by 16% in the next 3 or 4 years.

He explains that real estate in Ireland which used to sell at EUR 200 00 before the crisis now sells at half the price, which is why some owners are ready to sell at a 25% loss in Bulgaria to buy property that costs up to 50% less in Ireland.

"There is good demand for reasonably-priced real estate. People who have bought property at high prices will have to wait some time before the prices return to these levels", Cullen informs.

According to Cullen, the location of the property continues to be the key factor. In his words, real estate brokers confirm that Russians are after good quality combined with a good location, which for the Black Sea coast means front line. Naturally, the price of the site reflects the superb location.

Cullen says that his company has sold 70 real estates to buyers from the former Soviet Union since the beginning of 2011.

In his words, investors from Russia, Ukraine and Azerbaijan are showing a growing interest in real estates located in Sofia and along the Black Sea coast.

They are looking for already built properties or new construction and refrain from greenfield purchases.

Appreciating Assets offers over 100 real estates in various mountain and sea resorts in Bulgaria. The cheapest apartment in Bulgaria's Sunny Beach has a total area of 30 square meters and has a price tag of EUR 15 000.

The most expensive property, a fully furnished apartment with three bedrooms in Pomorie, costs EUR 215 000.

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Tags: real estate, properties, housing market, real estate market


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