Bulgarian property market's success 'depends on the banks'

The banks hold the key to the success of Bulgaria's property market in 2010, it has been reported.

According to a report by Bulgarian news provider the Sofia Echo, one of the country's leading real estate companies, Address, has claimed the banks' decision whether or not to implement a foreclosing policy will have a major impact on the property market.

Alongside foreign investors, banks have played a major part in the real estate boom seen in Bulgaria in the previous five years.

Experts have predicted that foreclosures would lead to a significant drop in real estate prices, similar to the situation in the US.

The Sofia Echo quoted Address as saying that by holding onto defaulted loan properties they risked losing investors.

Bulgaria also benefits from not being a eurozone country and current exchange rates between the Bulgarian lev and the GBP are very favourable towards UK buyers, allowing them to get more for their money.

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