Bulgarian slowdown 'could be temporary'

The recent slowdown in the Bulgarian housing market may only be a temporary lull, experts have suggested.

Foreign Property Buyer said issues such as overpriced houses, unfavourable credit terms and supply exceeding demand have fuelled a drop in the rate of house price inflation.

However, the website stated that some analysts believe the market is likely to pick up again at some point in the future.

This is because investors from overseas are still being drawn to Bulgaria by factors such as its strong buy-to-let market and affordable prices.

"Popular holiday resorts and city locations [are] still attracting strong rental yields and strong demand from investors," Foreign Property Buyer said.

The website added that major cities such as Sofia and Varna could still be "worth a look".

This comes after Bulgaria was flagged up as a good market to consider by Aston Lloyd, which said property values are relatively affordable when compared with many other markets.