Bulgaria

Market Analysis

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.