Hi

The nightmare that investors on the Costa’s face with demolition orders for illegally built developments is now facing investors on the Black sea coast.

An Act came into force on January 1, 2008 (The Spatial Planning of the Bulgarian Black Sea Coastline Act) which is clamping down on illegal construction on the Black Sea coast. The law stipulated that illegal constructions were to be voluntarily demolished within a month of the law coming into effect. Failing that the demolition was to become mandatory.

There is a lot of commentary on the problem of corruption in the country and I anticipated the effect this Act would have on the ground. It is being enforced with the Bulgarian Directorate for National Construction Supervision (DCNS) issuing 193 orders for the demolition of what it deems ‘illegally constructed buildings’ along Bulgaria’s coastline to date.

This is a major concern for investors on the Black Sea coast but also indicates that the government is putting measures in place to tackle corruption and issues around planning permission (or lack of!).

There is a lot of negative press concerning corruption issues in Bulgaria and whilst this is disappointing news for the investors involved, it does reassure potential property investors in the country that measures are ongoing to tackle this.

Noreen

Hi Noreen

Looks like something similar is happening here on Spanish coasts too - with the government attempting to 're-gain' the Spanish coast line.

This just goes to show that beach houses are holiday homes and not investments.

But I think you also need to stress that the 'corruption' in Bulgaria is actually 'coastal' corruption - and is no different from the 'coastal' corruption in Spain.

What I mean is that neither Sofia nor Madrid are affected in this way - as per the recent debate we had on this forum about corruption.


Cheers
Neil

Hi Neil

The situation on the Bulgarian coast now seems very similar to what we have seen on the Spanish Costa's. You are correct to add that this is isolated to these markets which are very different to Madrid and Sofia respectively.

Unfortunately for some purchasers, these properties neither make good investments nor very good holiday home with over development etc.

Noreen