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Russians Buy Bulgarian Hotels by the Kilo

Monday, Mar 09, 2009

Property agents hunt for owners on the brink of bankruptcy
Rich Russians are buying hotels at the Bulgarian seaside for peanut money, real estate brokers reported. Many of them have commissioned special property agents to hunt for cheap estates. Owners on the brink of bankruptcy are the most wanted for their unfinished properties and ‘unrepayable’ debts. Undeveloped projects that have been refused crediting are in high demand, too. Ten seaside hotels change hands already, all of them sold at an average price of 500 euros/sq. m since the beginning of the year. The best deal was for a 1000-sq.m four-storey hotel at a rough construction stage that was sold for the mere 300,000 euros. In spite of the lethargy on the Bulgarian property market, Russians don’t stop investing over fears that their money may lose value. Moreover, more and more Russians are losing confidence in their country’s banking system, experts explain.

Source: Standart newspaper