Low prices, long-term investment prospects and changes in lifestyle have fuelled record-high property sales in Bulgaria for 2006, a realtor data shows. The year-end count of transactions is forecast to reach 260,000 at a combined value of more than EUR 5 B, according to figures of BulgarianProperties, partner of foreign property buyers in Bulgaria. The experts comment that following the massive 25% to 30% annual capital gains of recent years, Bulgaria’s property market is now showing a much more realistic growth rate of 15% so far this year, setting the pattern for more predictable and sustainable long-term investment.

EU membership in January next year, the nationwide development of major tourism and infrastructure projects, the planned expansion of low-cost airline routes in 2007 and mortgage facilities remain the main attraction for making a property purchase in Bulgaria. The trend to buy a home abroad has now moved to a new level with more and more people buying overseas with the intention of emigrating.

Recent research findings show that over half of UK homeseekers aged between 18 and 29 would consider buying abroad and the UK Office of National Statistics has reported that some 198,000 UK citizens, almost 4,000 a week, left the country last year to live overseas. The number of Britons living in Bulgaria has doubled in the past year alone, with more than a thousand British families given residency here. Many buyers are now seeking a permanent residence, rather than a second home and are planning to live and work in Bulgaria.

Novinite.com

There are several major projects for development in the region of Bansko, which attract the investors` interest and considerably increase the prices of land plots.

“Balkanstroy” will contract a major golf complex in the Kulinoto site nearby Razlog, which has to be completed in the next three years. The investment is estimated to reach 240 million BGN. It plans the construction of 60 km of ski tracks and 20 km cable lifts. At the moment the same company constructs the golf complex “Pirin Golf Holidays Club” in the Betlovoto site. 60 million euro will be invested in the project. It will offer a golf course with 18 holes and vacation apartments and chalets on 120 thousand square meter land. The complex is expected to be completed by 2008.

The construction of a ski zone in Dobrinishte region, according to the projects of “Dobrinishte ski” is planned to be completed in three years. 260 million BGN will be invested in the construction of the ski tracks with total length of 40 km and accommodation for the tourists. According to the property companies the region around Dobrinishte is about to be developed and the prices of the land are considerably lower in comparison to these in Bansko. According to “Fors” the average price of the land in Dobrinishte is around 60€ per square meter

Capital weekly

An extravagant new ski and golf centre, designed to bring in tourists from around Europe, is to be built in Bulgaria it has been announced.

To be built in the Kulinoto area near Bansko resort, the centre will be aimed at year-round tourism, reports the Dnevnik Daily.

The ski area alone will boast 20 installations, with 20 kilometres of lift routes and ski tracks measuring 60 kilometres long.

And the golf area will include a hotel, clubhouse, commercial complexes and a golf playground.

Currently Bankso is Bulgaria’s primary ski resort with a season lasting from December 15th to May 15th, the longest of any Bulgarian resort.

Bansko is approximately 160 kilometres away from the capital of Sofia and a mere six kilometres from Razlog.

The resort has only come to the attention of skiers in the last decade or so, but in that time has become one of the most popular in Europe.

Dnevnik Daily

New tendencies in the vacation property market in Bulgaria were to be expected, agents said during the Southeast European economic forum that began on October 31. Vacation property demand in the central parts of the country was going to increase, mediapool.bg reported. The demand would be highest in villages known for spa treatment opportunities. Hisarya, Velingrad and Sandanski could soon become new vacation property hotspots, mediapool.bg reported.
The State Agency for Tourism (SAT) was going to aid developments increasing the popularity of Bulgaria’s alternative tourism. Bulgaria ranked second after Island in the availability of mineral water springs and had to make use of this potential, SAT representatives said. Lack of proper infrastructure in these villages hindered the development of tourism options and the property market, mediapool.bg reported.

Mediapool.bg

Speculative investors bought Bulgarian property well before confirmation was received that Bulgaria would join the EU; so now that Bulgaria’s EU entry date has been confirmed as January 2007 have these speculators swallowed up all of the capital gains possible and bought the best rental rate returning real estate? Many would have you believe that this is the case but property investment experts Amberlamb reveal another side to the story – namely that it is still possible to profit, and profit well, from property in Bulgaria.

At which point did property in Bulgaria as an asset class shift in many people’s minds from being the absolute must have investment commodity to being an over-hyped asset likely to be left standing empty, unable to be let out or resold? Is the change in attitude towards Bulgarian property accurate? And what’s more - why should we care?

Firstly, we should care because many individuals have actually taken the plunge, believed the hype and invested significant sums of their hard earned money into property in Bulgaria in a bid to buy into a marketplace where there is both room for capital growth and demand for property to let for attractive rental returns, and it is unfair to dismissively undermine these people’s investments merely on a whim!

Secondly, there remains not only room for impressive annual capital appreciation in Bulgaria for the medium term but the nation has one of the fastest growing tourism markets in the world meaning that it is a hotspot for careful and considered buy to let property investment for the long term…
The general change in the consensus of opinion relating to the attraction of Bulgarian real estate - or lack of it - came about as the annual rate of potential capital appreciation achievable from property dropped from triple digits in 2005 to double digits so far in 2006 – but yet again, let’s put that into perspective…yes, at its height the Bulgarian property market was growing so fast that a selective investment made into property could return an investor over 100% gains in one year, but today as base underlying prices have risen from their incredibly low starting point, annual average capital growth is a more realistic but still highly attractive 30 – 35%.

What the media and many property analysts have got entirely right is that it is not possible to profit or generate an income from every single property in Bulgaria and this is perhaps where mistakes have been made in the past – such was the frenzy surrounding the exciting rate at which the property market was expanding in Bulgaria that investors believed they could buy any old piece of real estate and rent it out or flip it and resell it for strong gains. Naturally enough, now that the market in Bulgaria is maturing the old essential aspects of location, location, location have come into effect and only the best located and most desirable properties will let and resell easily making the Bulgarian property market less of an emerging temptation and more of a mature opportunity.

There exists a genuine and growing demand for property in Bulgaria for sale, that tourism in Bulgaria is growing in a sustainable way by up to 22% annually, that double digit capital growth is forecast by leading property analysts for the medium term, that the government of Bulgaria and private investors are continuing to plough substantial funds into the improvement of attractions and infrastructure across the nation and that prices for attractive properties with the best potential for rent and resale are still incredibly low compared to markets such as France, Italy, Spain and Portugal meaning that not only is the Bulgaria property market accessible for more people it is likely to prove profitable for many years to come..

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