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Investors release equity in the maturing Bulgarian market

20th May 2007 Print
Recognising a growing trend in the current Bulgarian property market, Bulgarian Dreams highlight that increasing numbers of investors are choosing to release equity from original purchases and re-invest in the country’s maturing market. Through Piraeus Bank London, purchasers can now take advantage of a Spring Special offering exclusive terms for re-mortgage and equity release applications submitted and approved during April and May 2007.

Bulgaria is considered one of the fastest growing tourism markets in Europe, with a predicted rise of 10% throughout 2007, making it an ideal place for property investment. Buoyed by recent rises in annual capital growth, from 13.9% in September to 17.3% for 2006 as a whole, greater numbers of European and American secondhome buyers and investors are attracted to the low cost of living in the country and high quality developments.

Irini Tzortzoglou, Head of Retail Banking at Piraeus Bank S.A. in London, comments: “In the early stages of the Bulgarian market, the pricing of Bulgarian risk was higher across the board of lending. Buyers were not familiar that they could borrow and developers, who had acquired the land very cheaply, could afford to sell at lower prices resulting in people either paying from savings or releasing equity from their main residences in the UK.”

“As the market matures, prices are rising to reflect the increased price of land and improved specification of the properties, therefore we are seeing higher selling prices and buyers becoming more knowledgeable as to the choices available to them.”

“At Piraeus Bank, we feel that customers might like to release some wealth from their Bulgarian homes to either repay the original UK loan, friends and family, or simply use the proceeds to re-invest. We have seen people who bought one property two years ago on the coast now wishing to buy another, perhaps in a city or at a mountain resort. Our equity release product allows them to do this through a simple and easy process as all the documentation, including plans and permits, are all available.”

Taking advantage of the Piraeus Bank offer, those who have invested in the country can now release capital from their original purchase and re-invest in a number of developments, including Bulgarian Dreams’ coastal property Windows to Paradise and The Orchard located at the top ski resort of Bansko.

Robert Jenkin, Director of Bulgarian Dreams, comments: “By unlocking capital in an existing property, investors are able to take advantage of a market that is very affordably priced and growing in popularity. We are glad to partner with Piraeus Bank and make this outstanding offer to our investors and expect to see a number of people take the opportunity to further enhance their portfolios in a growing second home and tourist market. The property market in Bulgaria is not showing any signs of slowing down as we a steady number of secondhome buyers and investors.”

Bulgarian Dreams offers a diverse selection of developments ideal for those looking to increase their property portfolios. Windows to Paradise is located on a stunning hillside in Balchik, offering a select collection of studios, one and two bedroom apartments and penthouses with the majority of the properties boasting incredible sea views. The facilities at the scheme include several outdoor swimming pools, full spa centre with indoor pool, steam bath, sauna, Jacuzzi and children’s pool. Set within landscaped botanical gardens, the scheme also features a restaurant and fully licensed bar, shops and a supermarket. A wine cellar, offering wine tasting evenings, provides free space for resident wine-buffs to keep their favourite bottles.

The Orchard is Bansko’s most exclusive and chic new development located just 5 minutes walk from the resort’s main ski lifts and offers residents the benefit of Bulgaria’s largest and most luxurious spa complex. Comprising 500 studio, one and two bedroom apartments, The Orchard is extremely popular among purchasers, who will have free access to the spectacular 18,000 sqft spa, as well as a number of other facilities including a cinema and a communal ice rink within the landscaped grounds.

Prices at Phase III at Windows To Paradise start from €38,546.63 (£26,583.88) for a studio apartment, €57,902.13 (£39,932.50) for a one bedroom apartment and €81,769.50 (£56,392.76) for a two bedroom apartment. Prices at The Orchard start from €52,500 (£35,000) for a studio, €72,000 (£48,000) for a one bedroom apartment and €120,000 (£80,000) for a two-bedroom property.

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