Despite a turbulent history, Bulgaria is the oldest surviving state in Europe to have kept its original name (since AD681) and most of the population are descendants of the Bulgar invasion of the south Danube around that time.
A Balkan country with spectacular mountains and a coastline on the Black Sea, Bulgaria has a lot to offer to visitors. With mountains occupying half the country's territory, Bulgaria is emerging as a new bargain ski destination. Visitors can stay in towns and villages that have aimed to preserve the authentic Bulgarian spirit and hospitality. Bulgaria is especially proud of its rich folklore traditions. Folk dances, music, national costumes and traditional rituals play an important part in the life of Bulgarians. In addition, the Black Sea Coast has over 370km (232 miles) of coastlines with sandy beaches and numerous attractive resorts which are ideal for both traditional seaside family holidays or more active stays.
Ski Properties in Bulgaria
Bulgaria has seen an incredible property boom in the past four years. Prices are rising as British investors scramble to buy low-cost property there in pursuit of rising markets and fast profits. With EU membership in January 2007, an economic transformation is under way.
Money is pouring into Bulgaria in foreign investment and funding from the EU and the World Bank. Much of the foreign aid is aimed at raising the country’s economy closer to the EU average in preparation for membership. Much of that money is being spent on infrastructure, including roads and facilities to boost tourism.
It is also receiving investment to redevelop key areas, notably in Sofia, the capital city. New embassies, offices, conference centres and hotels are under construction and firms such as Citibank, SAP and Deloitte are moving in.
Demand for rented property in the capital, Sofia, is underpinned by a shortage of affordable homes, costing between E 50,000 and E 90,000 for a two-bedroom flat. The rate of increase in average earnings has lagged behind property gains of 20% in 2005, but prices are still lower than in other former communist capitals like Prague and Budapest.
The future earning potential of such properties is being used to facilitate lending on buy-to-let investment – largely by foreigners – and property values are predicted to grow by 15% over the next year.
Tourism has grown rapidly in recent years, with a 62% increase in British visitors over the past year. The sun drenched Black Sea coast that runs from Turkey in the south to Romania in the north is becoming an alternative to Spain and Greece. The mountains are developing as a skiing alternative to France and Switzerland.
There is no agreement to allow budget airlines into Bulgaria. But their arrival is expected to transform tourism and boost demand for holiday accommodation and second homes. Rental yields in Sofia and in the mountains are around 7% to 10%. Also on the Black Sea coast, between May and October.
With growing investment in infrastructure in the mountains, Bulgaria looks set to compete with the Alpine resorts in the near future. Its “ski capital” Bansko, a two-hour drive from the airport at Sofia, boasts the most modern lift system in Europe. Situated in the Pirin Mountains, Bansko is a dual season resort, a nature reserve and a World Heritage site, offering thermal baths, golf, climbing, hiking, riding and access to winter skiing at 1,400 to 2,500 metres. The ski season is from December until April, but occupancy rates are also high during the summer months. It has an attractive old town with cobbled streets and lively tavernas. Building regulations are strictly enforced: no building may exceed four storeys and all are constructed in traditional style, with whitewashed walls and wooden balconies. Inside there are beamed ceilings and open log fires. Some new developments include indoor swimming pools, fitness centres, cafes and restaurants.
Bulgaria has the best developed market for ski property in central and eastern Europe, but demand for accommodation in Bansko still exceeds supply. Investment prospects look good, with tour operators offering rental returns of up to 10% on ski-flats. British developers are already moving into the area and alpine-chalet style schemes are being built.
Property prices on the pistes in Bulgaria are a fraction of those in France or Switzerland, although they are rising. A studio close to the ski-lift in Bansko starts at around £22,000; one-bedroom flats from £31,000; two bedrooms from £45,000. An airport planned at Razlog, 10km from Bansko, is expected to boost values.
There are bargains to be had south in Pamporovo, a ski-resort at 1,650 metres in the heart of the Rhodopi mountains, 90 minutes from Plovdiv airport. At 280 days a year, it is the sunniest ski resort in Europe, yet with ski areas over 2,000 metres, the snow record is good.
There are plans for the ski area to be tripled by 2009, but prices are lower than Bansko: a three-bedroom lodge with skiing to the backdoor can be had for under £100,000; a studio from £16,000; a one-bedroom flat from £22,000.
If you are looking for a ski property in Bulgaria or ski apartments in Bulgaria then Erna Low property can help you.
The biggest problem areas in Bulgaria have been false title and false planning permission. This is now much less common, however make sure these are both in place before proceeding with the purchase
Frequently Asked Questions
Can foreign nationals own property in Bulgaria?
Yes, foreign nationals are free to own as much property in Bulgaria as they wish, without restrictions. However, if you purchase land, you are currently required to incorporate a business in Bulgaria and own the land as an asset of the company.
Why should I choose Bulgaria?
Bulgaria is ideally situated in Southeastern Europe and is easily accessed by direct flights from most European airports. Bulgaria has something for everyone. A warm climate entices year-round tourism, along with a wide range of cultural and historical interests for sightseeing. Bulgaria also boasts a rich variety of natural beauty, from stunning blue flag Black Sea beaches, to beautiful mountains with ski resorts. It is small wonder that Bulgaria is the fastest growing holiday destination in the world. Major tour operators such as Thompson and First Choice now include Bulgaria in their brochures and cite it as one of their top sellers. Investment wise, high growth figures are very achievable while land and property prices are on the increase. Over the past two years, prices have risen by over 50% in some areas and with the enormous boost to tourism currently underway, buy-to-let purchases are also proving highly lucrative. So Bulgaria now offers some of the best investment opportunities available worldwide and, with economic growth predicted by the World Bank to be 6% by the end of 2006 and EU membership set for January 2007, Bulgaria is a wise choice for property investment.
What is the economic and political situation?
Bulgaria’s socialist party has taken drastic and speedy measures to qualify its infrastructures for accession to the European Union in 2007. Today GDP stands at an encouraging 5.5 per cent and the international community now views Bulgaria in a very favourable economic light. Efforts to reduce inflation have succeeded (currently around 0 per cent) and privatisation plans are being driven forward at a great pace. The World Bank director for Bulgaria & Romania has claimed Bulgaria as “a good place for investment”, highlighting the fact that in just 3 years, the country has risen from being the World Bank’s lowest rated country in this Eastern region, to being the highest. Today, foreign investors are focusing their attention on some of the very exciting real estate prices still on offer in Bulgaria as investments in the right locations are fetching high capital returns. An enormous increase in tourism has helped create a healthy economy in Bulgaria and prompted many foreigners to invest here. Early investments will prosper as following EU membership in 2007, prices are predicted to soar.
How do we travel to Bulgaria?
Budget airlines have been running peak season flights to the Black Sea hubs of Burgas and Varna for a few years already and British Airways has just jointed them and begun direct flights to Varna. Your nearest airport: London Gatwick Heathrow Luton Stansted South West and Wales Bristol Cardiff Exeter S