Overseas buyers planning to enter the Bulgarian market have been urged to choose existing housing stock.

Balkan Holdings said that off-plan properties would not be as good for investors, as the available supply outweighed the level of demand.

By contrast, some existing houses were said to be "ridiculously cheap" by western standards, with better investment potential.

Chris Northam, managing director of Balkan Holdings, commented: "Existing housing stock is still relatively inexpensive compared to almost anywhere else in Europe."

He added that the development of off-plan properties in Bulgaria had happened "much too quickly".

According to figures from Green Life Property Development, UK citizens accounted for approximately one in five real estate deals in Bulgaria this year.

Earlier this month, Stephen Hughes from Foreign Currencies Direct told This is Money that Bulgaria was a popular option for overseas investors, as it was seen as a good value for money destination.