Key Highlights:

• Global house price inflation in Q1 2008 stood at 6.1%, compared to 9.2% in Q4 2007
• Bulgaria, again tops the index as the country with the greatest annualised price growth (31.5%)
• Latvia prices appear to be in freefall, with negative price inflation of -20%, down from over 60% growth during the same period in 2007
• Outside Europe, Singapore and Hong Kong continued to outperform the market, as did Russia Australia, and China

Liam Bailey, Head of Residential Research, Knight Frank, says:
“The Knight Frank Global House Price Index shows that while house price growth in Europe and America continues to slow or even fall, pockets of strong growth remain.”

“Bulgaria continues to confound market fears of oversupply and has so far proved immune to the deceleration seen in much of the continent. Iceland is another surprisingly strong performer with growth of 19.1%. The Baltic region remains in the doldrums, noticeably Latvia and Estonia. Difficult economic conditions, evident in high rates of national debt, are partially to blame for the Baltic woes. The US also continues to experience difficulties, while the far-eastern cities of Hong Kong and Singapore are bright spots on the residential investment horizon.”

“The country by country summary that follows provides an insight to the shifts currently taking place in house prices across the world.”

Overview:
Residential property price inflation continued to slow in the first quarter of 2008, falling to 6.1%, compared to the 9.2% recorded the previous quarter and 9.8% over the 12 months to Q1 2007. The number of markets where prices have fallen has increased, and although there are still locations where price growth is in double figures, at the moment they are the exception rather than the rule. A year ago, 35% of the markets covered by Knight Frank in the Global House Price Index saw house price inflation in double figures. In Q1 2008, this proportion had fallen to just 20%. The geography of the best performing markets is not so clearly delineated as in previous years, when we might have been able to say that growth was strongest in the Far East, or Central and Eastern Europe. Today, the top performing markets are dispersed around the world, with Bulgaria, Singapore, Hong Kong and Jersey being the locations with the highest growth rates.

Europe:
Since Q2 2007, Bulgaria has been the best performing location in the Knight Frank Global House Price Index. While the rate of growth in the price of flats was lower than in previous quarters, it was nonetheless maintained at over 30%, again being driven by the performance of areas bordering Romania such as Ruse and Vidin, as well as the capital Sofia, where year-on-year price inflation exceeded 60%.

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Анна Андрушевич, Юлия Лозовская
журнал “Ваш Дом за Рубежом”

В последние годы лыжники и сноубордисты открыли для себя курорты горной Болгарии. Вслед за новыми отелями здесь появились интересные предложения по продаже жилой недвижимости.

Большие зимние курорты Болгарии открыли новый сезон в середине декабря. Часть комплексов подверглась реконструкции, практически везде появились новые апарт-отели.

Местные операторы рынка говорят: недвижимость в горах покупают те, кто смотрит далеко вперед. «Испанцы десять лет назад прошли то, что сейчас переживает Болгария. Сейчас они скупают здесь земли и строят, потому что видят результат – огромные прибыли, – говорит Светлана Александрова, директор юридической фирмы «ЮрРайт». – Особого различия в ценах между прибрежными и горными районами, пожалуй, нет, только в горах нельзя купить дешевое жилье, выбор апартаментов обычно начинается с категории 4+».

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Подготовлено агентством «Медиамарк» специально для журнал Homes Collecition

Темой исследования стали курорты Болгарии. Инвестиционная привлекательность недвижимости в этой стране, прозрачность процедур приобретения жилья и коммерческих объектов делают Болгарию одним из самых востребованных регионов.

Мы сознательно исключили из анализа крупные города Болгарии - это тема отдельного исследования. Нас интересовали следующие вопросы:

1.  Цены на недвижимость на горнолыжных, бальнеологических и морских курортах.
2.  Самые популярные курорты (по количеству актуальных предложений).
3. Самые востребованные типы недвижимости.
4. Минимальные и максимальные цены.
5. Ценовая разница между новыми жилыми комплексами и вторичным рынком.

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Курорт Пампорово превратился в строительную площадку. Воздвигают все новые и новые отели, базы отдыха и рестораны. Большая часть капитала русская, утверждают люди работающие в этой отрасли. Братушки создают совместные общества с болгарскими фирмами и планируют с русским размахом. Московский мэр Юрий Лужков также положил глаз на курорт Пампорово. Он хочет купить отель “Персенк”. По мнению источника из московской мэрии это будет первый этап. Москва хочет купить земли на краю родопского курорта, где будет строить базы отдыха и подъемники. Так Пампорово превратится в русский Беверли хиллс, говорят местные владельцы отелей.

Русские среди инвесторов в самом большом отеле в сердце Родопи. Владелец и директор московского банка один из акционеров комплекса “Студенец”. Дмитрий Подколзин владеет 20% капитала общества “Студенец 2001”. Столько же принадлежит и его соотечественнику финансовому боссу Антону Королеву. Равные доли с ними имеют болгары Георгий Попов и Стефан Пепеларски и фирма “ИСА 2000”. Первая закладка минигорода была сделана в мае этого года, а по плану первые гости будут встречены в конце 2006 года. Планируемая инвестиция только в основное строительство 11 млн. евро. Главный исполнитель объекта бургаская фирма “ПОНС”.

Уже за два месяца сделаны бетонные основы двух подземных этажей. Там будут торговая и бизнес площади, бассейны, паркинги, рестораны и увеселительные заведения, помещения для персонала. Над ними будет восьмиэтажный отель, который уже продается. Отель будет иметь 150 апартаментов и 140 комнат которые могут вместить 1000 человек. Развернутая площадь целого комплекса 70 тыс.кв.м. В основе отеля будет находиться купол, который оформляет миниплощадь. От него ведут подземные улицы к паркингу на 250 машин, бары и казино, банковские салоны, рестораны и конференцзалы. Огромный бассейн, фитнес залы, соляриумы и спортивный центр это дополнительные удобства для будущего отеля.

Пампорово становится русским Беверли хиллс Мэр Москвы Юрий Лужков также предпочел Родопи перед Стара планина для лыжной базы. В начале года русские эмиссары вели переговары с мэром Берковца Милчо Доцовым. Они приехали в ответ на его письмо, в котором градоначальник пригласил Лужкова инвестировать в Берковицы. Доцов предложил проект лыжного комплекса на горе Ком стоимостью 80 млн.евро. Русских не интересовала цена, но они предпочли явно вариант подешевле готовая база в Пампорово.

Официального отказа еще нет, но в прессе появилась информация, что Лужков купил болгарскую горную базу около Смоляна. Это означает, что он не выбрал наше предложение , сделал вывод берковский мэр. В это же время мэр города Смолян Дора Янкова призналась, что русские эмиссары три раза вели переговоры о покупке базы в регионе. После того, как остановились на “Персенк”, изучили статус земли и леса расположенного вблизи. Этот отель находится в собственности “Минстрой-холдинга”, ОЦК-Кырджали и мини “Бобов дол”. В настоящее время за отель ведется судебный спор. Уже целый год отель опечатан. Два года назад отель был оценен в 2 млн. лева. Между тем в русской прессе появились статьи, что Лужков будет покупать базу в Пампорово за 6 млн.евро. В средствах массовой информации велась дискуссия о выгодности вложений. “Покупка этого курорта бессмыслена, так как его уровень ниже чем а лыжных курортах во Франции, Австрии и Италии”, твердят чиновники из комиссии московской мэрии по покупке недвижимости. Однако их опоненты утвердждают, что Пампорово очень популярен среди москвичей, а цена на недельный отдых составляет около 600 евро включая билет на самолет.

В местности Райкови ливади, которая находится в 10 км от Пампорово и в 5 от Смолян, планируется построить небольшие курортные домики по американскому типу. В проекте так же и современные 4-5 этажные блоки, в которых апартаменты продаваться не будут. Однако специалисты по туризму рекомендуют ограничивать грандиозность строительства и строительство горнолыжных трасс и подъемников, а сохранить есстественную и неповторимую природу Родопи.

Щ.Чакърова
П.Цветкова

More than 2 million euro have been invested in Bansko’s ski runs reconstruction, said representatives from Ulen, Bansko ski facility concessioner. The reconstruction programme has been developed by the world-famous consultancy company Ecosign Mountain Resort Planners. Ecosign’s study and concept for the snow-based Olympic venues led to the nomination and the election of Sochi/Krasnaya Polyana to host the Olympic Winter Games in 2014.

The length of the ski runs in Bulgaria’s Bansko reached the record-breaking 65 kilometers. Bansko ski runs’ reconstruction programme is coordinated with experts from the Environment and Water Affairs Ministry, the company stated..

This year Bansko hosted a round of the Women’s Alpine Ski European Cup. Next year it will hosts the initial round of the men’s competition.

Investment fund Equest and Oman investors from have set up a joint venture that will implement the Super Borovets project, said Equest managing partner Georgi Krumov. The joint venture Borovets Invest now owns 67% of Rila Samokov 2004, the project company that owns 2 mln sq m of land in Bulgaria’s Borovets mountain area for further development into residential second homes and associated infrastructure.

Equest has contributed 10 mln euro to the partnership where ownership is evenly split between the two investors. The size of the Oman investment in the joint venture was not disclosed.

Earlier this year Equest invested 15 mln euro in the capital of Rila Samokov 2004 to gain entry into the project.

The Samokov municipality controls a 25% share in Rila Samokov 2004 AD with construction company Glavbolgarstroy holding 8%.

A day before the announcement of the joint venture with Oman investors, Romanian news agency Rompress reported that Equest had acquired Romanian electronics and home appliances retailer Domo.

At end-2006, Domo had a national chain of 107 shops selling household, electronic, IT and telecom appliances, with a total area of some 40,000 sq m.

In Bulgaria, Domo has 7 specialist stores, with a total area of 3,500 sq m.

Equest already owns one electronics retailer, Bulgaria’s Technomarket. The chain has plans to expand into Romania and Serbia.

The Domo deal is a key investment for Equest as it shapes up the biggest chain of electronics stores on the Balkans, said Krumov. He did not rule out the merger of the two store chains.

More than 500 000 UK tourists visited Bulgaria in 2006. Many tourists came to Bulgaria, bought real estate and stayed in the country, UK deputy chief of mission Nick Leake said for Monitor.

Leake was on a day visit to Smolyan during which he met the mayor of Smolyan and management of the regional administration. With tourism sector representatives, he discussed opportunities for the development of the region. Leake said that it was important for tourism companies to decide which is more important, to attract fewer but wealthy tourists or larger groups of tourists with less money to spend, the newspaper reported. Nearly 600 UK people live in the region of Smolyan.

Britons come to Bulgaria attracted by the mountains, the sea and the exceptional nature, Leake said.

For a second consecutive year, Bulgaria’s Gesha View  holiday development won the prestigious five-star Bentley award for excellence in the property sector. It was also awarded a four-star prize in Bulgaria’s best real estate category.

The investors, among which Julian Georgiev, David Hollands, Robert and Cristopher Downham, put 2.25 million euro in the construction of the high-tech eco complex in the village of Gesha.

Gesha View provides for more than 130 residential units. Average sales price of a two-bedroom unit is 110 000 euro and the most expensive home costs 200 000 euro. So far buyers from UK, the Netherlands and Italy have purchased homes in Gesha View.

The complex is set to open at the end of 2008.

Bulgaria is the first of the 12 new EU members, where the leading brand for luxury properties Christie’s Great Estates chose for its new affiliate the Bulgarian company Unique Estaes Luxury Properties.

The contract was signed yesterday June 26th, 2007.

Christie’s Great Estates is the world’s largest network of real estate brokers specializing in the marketing and sale of luxury properties. The company is fully owned by Christie’s International – the world’s biggest auction house. The Chrisite’s Great Estates global network includes nearly 35 000 sales associates operating from 850 offices in more than 35 countries. The network’s combined annual sales top $125 billion.

Unique Estates is a Bulgarian company, specializing in luxury properties and is part of the biggest real estate holding in Bulgaria AG Capital. The negotiation process with  took more than two years.

The bed capacity in Balkania, the mountainous tourist region encompassing the municipalities of Teteven, Apriltsi and Troyan in Central Northern Bulgaria, will jump to 10,000 over the next 2-3 years, said Daria Zarichinova from Tour Club ReMark which is marketing the destination.

The club said at least 30 projects for the construction of new tourism facilities have been approved in the Apriltsi area alone. The bed capacity of area resort Chiflika has doubled over 2006 while at least 4-5 new hotels are under construction in resort village Ribaritsa.

Developers are preparing to build half a dozen of holiday homes villages in the region. The biggest investment in the Balkania region so far is the 4 mln lev Venika hotel in Chiflika. The 3-star facility offers 100 beds.

Tourist arrivals in the region are expected to increase by 20% this year.

Construction and investment company Tenbul said it will invest 1 mln euro in a gated holiday home complex in Ribaritsa, a mountain village in North-western Bulgaria. The 5,250 sq m Kostina vacation community will comprise 13 two-storey villas with floor area ranging from 140 to 190 sq m.

Villa owners will be able to rent out their property when they are not using it. The complex will offer year-round property management services. The first villas to be completed will sell at a promotional price starting from 950 euro/sq m, said Tenbul manager Marin Kadiiski.

The pristine Ribaritsa, located at an altitude of 600 m beneath the Vejen peak in the Balkan Range, is fairly popular among holiday property developers and second home buyers. Realtors said upscale properties sell at 1,000-1,200 euro/sq m.

Dnevnik Daily

Galchev Engineering Group in co-operation with Austria’s Norema was chosen as the investor for the construction of the Dobrinishte tourist ski zone. This was said by Radko Lechov, head of the Bansko municipal council, at a council meeting on May 13, Investor.bg reported.

“We chose Galchev Engineering Group after serious investigation of its activities. It turned out that the company has serious experience in building tourist complexes. Norema has strong financial potential. The combination of the two is extremely good,” Lechov said.

At the next meeting to be held in June, the two holdings are expected to form a mixed share holding with Bansko Municipality to carry out the project. The intention is for the municipality to have strict control over the building of the ski zone, Lechov said.

Building was expected to start by the end of the year, he said.

The ski zone will be designed by the same person who designed the ski zone in Bansko, architect Emil Lechov. The project will cost about 200 million leva.  Investor.bg said that last year, because of increasing interest in the Dobrinishte project, Bansko municipality worked out the basics for the development of the resort. This was presented to potential investors. Among investors that took an interest in the project were Nord Invetment Inc, and Sunset Developments Ltd, the owner of the two mountain huts and the hotel in Dobriniste. Later, Sunset Developments Ltd changed its name to Dobrinishte Ski Ltd.

Last October, the Invest Bulgaria Agency gave Dobrinishte Ski a first class investor certificate for the ski complex project. For now, it remains unclear why the Dobrinishte Ski Ltd project did not go further. An official statement by the Invest Bulgaria Agency was expected.

Currently, the ski complex in Dobrinishte includes the Dobrinishte hotel which has a 130 bed capacity, Gotse Delchev hut (40 beds), and Bezbog hut (140 beds). The ski track is five km long. It starts at Bezbog hut and finishes at Gotse Delchev hut. It is 30 m wide, with two lifts, ski drags, and a ski school.

Investor.bg 

Israelis will built the largest tourist complex and villa settlement in the Southwest of Bulgaria valued at 100 million euro. The Israeli company “Asim Investment Group” has started the grand project in the areas of Katarino and Golak, located on the territory of Razlog city. The complex will be named “Rila Ville Village” and will be constructed on a 150 decares of terrain. The start of the construction works is scheduled for February 2008 and will be completed in 5 years.

The property was bought on 31 October 2006 on a tender for the sum 6 008 388 BGN. The property is owned by the Municipality and has been given to the Municipality by the Ministry of Defense. In the “Golak” area the Israelis have bought 82 566 sq.m. and in Katarnio area – 66 084 sq.m. Three zones will be differentiated on the terrain: hotel zone with sports center, central part for public service and zone for apartment buildings. The complex will include a total of 1 000 apartments, trade- and entertainment areas.

Last week the investors organized a road show in the area where the site is to be constructed. Zvika Karmi stated that the complex will also have a child center, sport playgrounds, indoor swimming pool and a great number of other extras. The president of the Razlog Municipal Council – Radko Tumbev – told the investors that the municipality’s policy was to promote the tourism and added that in Razlog one could find all the natural resources needed to implement grand-scale projects.

Bulgaria’s State Agency for Tourism says that the number of tourists visiting spa resorts will increase by 75 per cent in the next three or four years. Investors have been working on spa tourism projects for a long time, Kapital daily reported.

There are spa centre and hotel construction projects in, among other places, the well-known destinations Sandanski, Kyustendil and Apriltsi. These regions boast favourable natural resources and, unlike other traditional resorts, are not burdened by overbuilding. Major spa projects have already influenced the property market, in certain regions further boosting property price increases.

The regions of Bansko and Razlog have emerged as the most popular among investors. According to real estate agency Address, eight vacation complex projects with a total built-up area of 50 000 sq m are underway in the village of Banya. The village is near Bansko and has 70 mineral springs. As a result, average land prices in the region went up, reaching 40 to 100 euro a sq m, Address said.

A major spa project in Kyustendil will result in a hotel and apartment complex of 32 055 sq m area. The centre will target wealthy clients. National Statistical Institute (NSI) data said that residential property prices in Kyustendil increased by 11 per cent in the first quarter of 2007.

Analogue of the big project “Super Borovets” is under development by the businessman Hristo Kovachky. It will be situated in Mala Tsurkva, Govedartsy and Maljovitsa villages. General construction plan of the area is now being prepared, and is about to be completed by the end of May. Joint company “” was created last year for the purpose of the new project. 50% of the shares are owned by Samokov municipal and the remaining shares belong to “El-El Impex”, whose sole owner is Hristo Kovachky.

The plan is to create 5 tourism centres, which will be able to service 8-10 thousand tourists, explained from “Nadar 2006”. The so-called resort-and-tourist location will comprise three zones, where 50-70 km of ski slopes will be constructed.  After the plan is accepted, the total amount of the investment will also become clear. The investment will be times bigger than that for the project in “Boriko” location. 23 million BGN were planned for “Boriko” project.

The municipality owns 25% of the company which will develop the “Boriko” location. The municipality will preserve this share irrespective of the amount of the investment. The construction of a winter stadium, and a two-seats lift with capacity to transport 1000 visitors per hour. There will be 3 ski slopes for beginners as well as an artificial snow installation. The project will also bring about the improvement of the entire infrastructure.
Two ski slopes, named Sitnyakovo 5 and Sitnyakovo 6 will be constructed in the Martinovi baraki site. The slopes are due to become ready by the end of the year.
24 Hours Daily

with excerpts

The bed capacity in the Razlog/Bansko skiing area will jump to 200,000 over the next 5 years, Razlog mayor Lyuben Tatarski said in a statement based on the number of building permits issue by the two municipalities.

According to Tatarski, five new resorts will pop up alongside Razlog and Bansko which are already established destinations. The local government official tipped Betolovoto, where 2 golf complexes are already under developments, Dobrinishte, Bania, Predela and a golf hotspot taking shape just outside Razlog.

The only thing that could sidetrack the multimillion euro investments are the latest changes to the land use regulations and the uncertainties surrounding the designation of protected sites under EU’s Natura 2000 program.

The municipal authorities are campaigning against a recent legislative amendment which bars them for a period of 5 years from disposing of land unclaimed by its rightful owner. According to Tatarski, the changes should not apply to land that will be contributed to the golf course developments because it consists of rugged and rocky terrain unsuitable for farming. The Razlog municipal council has so far given the go-ahead to 7 golf course projects.

The municipality plans to set up joint ventures with each respective developer, contributing parcels ranging from 140 to 220 ha which translate into an equity stake of 20-30%. Tatarski said one work-around in case the law is not amended would be to prepare a land management plan stating that 30% of unclaimed land will be earmarked to compensate owners while the other 70% will be given over to golf resorts. Another option is to draft a masterplan where the farmland parcels slated for golf developments are rezoned as urbanised land.

The last 4 golf resorts approved by the Razlog municipality will be developed by Austria’s Nord Investment, Britain’s Emerging Capital Fund Management and the local Razlog Valley Golf and Balkanstroy. Investment is seen at 60-100 mln euro, said Tatarski. The golf resorts should be completed within 6 years.

Over 130 ha of land adjacent to the first golf resort set to partially open for business this summer have been bought up by developers at 100 euro/sq m. They are already building a number of holiday villages with local and foreign fundsDnevnik daily

Lewis Charles Sofia Property Fund Limited has signed a contract with Winslow Developments to regulate and eventually develop a holiday village project near Bania, which is close to the Bulgarian ski resort of Bansko, the fund said in a press release quoted by news agency Dow Jones on Monday, April 2.

Winslow Developments and the Lewis Charles Sofia Property Fund have signed a 4- year contract for the implementation and management of the project. The deal, which could generate approximately 113 mln euro in total project revenue, subject to planning permission, involves the regulation of the 121,420 sq m area within the next year, the planning and construction of a holiday village, as well as the marketing and sales of the completed buildings.

The two Companies are continuing discussions concerning the arrangements for after-sale property management. The Fund announced the acquisition of the land at Banya in August 2006. The Banya project, subject to the grant of planning permission, will involve the building of a first-class holiday village consisting of chalets and spacious apartments. The village will provide all the necessary facilities to guarantee the maximum comfort of its residents such as tennis courts, swimming pools, spa centre, restaurant and bars. The development is situated on a hill offering very attractive views of the Rila, Pirin and Rhodopi Mountains.

Lewis Charles Sofia Property Fund is an AIM-listed investment company focused on investment in the Bulgarian residential property market. The fund has a portfolio of about a dozen projects, mainly in Sofia, Veliko Tarnovo and winter resorts.

Winslow Developments operates since 2001. The company invests primarily in Bulgarian ski resort Bansko where it has completed 5 projects and has another 2 in development. The developer has also completed a villa community in Sofia and a logistics center in the village of Petrich.

In 2006, Winslow Developments announced it will implement jointly with RREEF, the real estate investment arm of Deutsche Asset Management, the global investment management business of Deutsche Bank, 2 large-scale residential projects in Sofia. The two developments, with cost estimated at 100 mln euro, will deliver a total of 1,000 apartments.

When you’re in the pub talking to the local barman about life, the universe and what’s what and you discover that they’ve just gone and invested in an off plan ski apartment in Bansko you really know you’ve missed the boat – no offence to the theoretical barman in question, but if everyone and his cat knows that property in Bulgaria is the place to invest money, chances are all the big opportunities have been sold out.

However, Bulgaria is still an attractive, well packaged, accessible location that has room for growth for a few years yet – but what you really need to know are the little known ways to profit from Bulgarian property that will set your investment approach apart from the rest and ensure that your real estate ambitions are realised when other areas of the investment marketplace are saturated…

For example – if you’re thinking of buying an apartment in Sunny Beach or a condo in Bansko think first about the concepts of saturation and oversupply. If on the other hand you’re thinking of a way to promote Bulgaria to the UK baby boomers in search of a safe overseas country with a relatively temperate climate where their pension will take them far further then you’re about to begin to see potential – hint hint!

Away from the madding crowds on the beaches and in the ski resorts, a few investors have begun buying up attractive village properties in communities such as Hotnitza and Rujitza for example where there are already at least a few Brits and they are renovating these properties with a view to selling the ‘lifestyle’ as well as reselling the renovated and pristine property to those hungry for an affordable, attractive retirement retreat.

Targeting a particular buying sector of society such as those Brits approaching retirement age where there is strong demand to own a property as well as a certain amount of affordability and then really getting to grips with understanding that demographic group and what they want from a home is an excellent approach to profiting from Bulgarian property.

Another approach is considering the student market – there are for example at least seven colleges and universities in Varna Bulgaria, very few of which provide accommodation and all of which are actively working to attract and retain greater student numbers – these students need affordable bed-sits, apartments and shared houses and buying such property is currently affordable, it can return a decent and reliable income and be a good long term capital appreciating asset.

Or what about speculatively investing in parcels of land? Or developing commercial premises in developing locations popular with the wealthier overseas buyers? Or what about buying large but more remote properties and developing them as guesthouses and reselling them as a going concern having marketed them to those who enjoy outdoor pursuits…come on, get your thinking caps on, look past the obvious and discover all the little known ways to profit from property in Bulgaria and make your move.

ShelterOffshore.com

Bulgaria has been experiencing a large uplift in tourist numbers in recent years and the World Trade Organisation forecasts that by 2010 the number of annual visitors to the country will exceed 20 million. Ski resorts in Bulgaria, such as Bansko, Borovets and Pamporovo, have become some of Europe’s fastest growing resorts for winter holiday sports. Bansko, for instance, has seen the creation of a new motorway linking it to the airport, a golf course built alongside the town and a new ski lift system within the resort. All this regeneration has been attracting more and more tourists and to cater to this demand there has been an explosion of new properties in and around the resort. Existing properties in such areas have seen significant price increases.

Tourists visit Bansko because of the 65km of skiing on offer, as well as its picturesque setting and medieval village. Attractions such as these have ensured its popularity among tourists over the past couple of years in particular. The resulting growth in the buy-to-let sector has been boosting the property market of ski resorts like Bankso and encouraging more newly built properties in such areas. Investors have been quick to notice this trend and are looking to purchase while there are still bargains to be had.

BBC

For years they have been cheap and cheerful, but the next generation of Bulgarian resorts are among Europe’s finest.

What country is this? At its top ski resort, prospective property investors check in to the Hotel Kempinski, one of the world’s top brand names. The rooms are Wi-Fi equipped, and there’s a cigar lounge, vitamin bar and spa. Nearby, one of Britain’s most up-market estate agents, Savills, is selling apartments for more than £320,000 each.

In the same country’s most popular coastal area, Obzor on the Black Sea, exclusive interior-design company Yoo has created a spa resort. The 257 apartments are on sale through another top-end British estate agent, Knight Frank, for up to almost £200,000.

Is this Italy? The US? Maybe France? No - it’s Bulgaria. “We feel that Bulgaria is one of the most exciting new frontiers in the property market today,” says John Hitchcox, who, with the French design maestro Philippe Starck, launched Yoo in 1999.

“It took us a while to get into Bulgaria because there were transparency issues over who owned the land. But the country’s made significant leaps in this regard in the past year or two, and the market is ready for the sophisticated kind of product that Yoo is associated with,” says Dominic Hassell of Knight Frank, which is selling the apartments for upwards of £55,000.

British estate agents are at the forefront of transforming the hitherto flaky image of Bulgaria’s property market into a much stronger investment and lifestyle proposition.

“Due diligence - that’s proving the ownership of land and ensuring there are legal deeds when homes are sold - had been a weak point, but we’re introducing British standards,” insists Charles Weston-Baker, head of international sales at Savills.

His company is selling the most expensive new-build properties available in Bulgaria at the country’s premier ski resort, Bansko. St George’s Lodge is a five-star ski and summer leisure complex, with 149 apartmentsranging from £48,500 to £322,000.

The shift in Bulgaria’s reputation has come as a result of high expectations about the country’s accession to the EU last month.

“Our sales in the country quadrupled in 2006 from the previous year,” says Antony Aguado of Our Home Abroad, a British estate agency selling homes in Bulgaria.

“This was no surprise. Many countries over the years have shown dramatic increases upon EU accession,” he says.

Liam Bailey, Knight Frank’s head of residential research, describes Bulgaria as “one of the big winners” in capital appreciation since the millennium. He says: “Slowly you’ll see its properties and amenities going up-market. It’s a place to watch.”

THE INDEPENDENT