May and June 2008 recorded a decrease in newly constructed buildings in Bulgaria, Eurostat statistics showed, as quoted by Bulgarian-language daily Sega on August 22. Despite this, the international real estate firm Europolis advised investors to prefer buying property on the Greek peninsula Halkidiki instead of in Bulgaria.

In June 2008, the construction industry in Bulgaria recorded a decrease of two per cent in comparison with May 2008, while May 2008 recorded a 1.1 per cent drop in new buildings in comparison with April 2008.

Bulgaria was among the top three on various European charts of the fastest growing prices and most profitable real estate trade in 2007. Currently, supply exceeds demand in many segments, while the over-construction at the resorts is driving back potential buyers and, additionally, blocking prices. The global crisis has also been sensed in Bulgaria, not in the least because it has chased away UK and Irish property investors.

On August 21, Europolis advised investors to choose buying property on Halkidiki instead of in Bulgaria because prices there were similar, but Greece had a longer summer season, better infrastructure and Greek resorts were not suffering from over-construction, according to Europolis brokers. They said that it was the same, even for the Bulgarians, to travel to Halkidiki or Kavala in Greece, or to Slunchev Bryag (Sunny Beach) or Sozopol in Bulgaria, as the distance was the same: about 350 to 400km.

According to Eurostat, the construction industry in UK and Spain was shrinking even more drastically, by 5.4 and 3.1 per cent, respectively. The European Union record holder was Slovenia, with a monthly reduction of 5.4 per cent for June 2008.

The construction crisis was not evident in Romania and Portugal, where the monthly increase was as much as 2.9 per cent.