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Small Property Developments are Preferred

There are numerous concerns amongst buyers of off plan Bulgarian property that huge projects may never be completed or at best risk being delayed by many months. This has led to a rise in popularity of small Bulgarian residential property complexes.

Before the credit crunch really took hold most purchasers were after large developments which naturally demanded high capital injections to finish the projects and very often expensive infrastructure criteria.

 

Now, these very projects which made many developers big players in the Bulgarian property market, are at risk of not being finished or severely delayed as they struggle to raise additional finance. Buyers are therefore considering a change and seeking the smaller developers where the building will be completed to the standards expected and within the stated timeframes.

Residential property developments in Bulgaria, which have an overall smaller size of some total 3,000 to 5,000 sq.m, are now gaining in popularity as there is much less risk to the purchaser. They are starting all over the country, not just in the over-developed Black Sea and ski resorts but further inland where value for money is particularly good.

James Gonzalez, Market Analyst at Obelisk (www.obeliskinvestmentproperty.com), finds the trend logical. "In a changing property market such as this, for every problem that might arise, so does a new opportunity. It is at times such as these that the most innovative minds come to the forefront. The ability to adjust to changing market conditions is central to successful investing in today's climate."

For sure, small developments don't require as much finance as larger ones. Additionally, those developers which are now taking the "small is beautiful" route are finding that finance is easier to obtain as the banks feel their risk is far less. They are also rapidly finding buyers who are seeking "boutique" developments, especially those which are fitting in with the beautiful surroundings rather than creating concrete masses.

This means less risk to both buyers and developers  of Bulgarian property  -  and a mutually beneficial result, so both are adapting to the new financial climate.