Buying Property in Bulgaria for under £80,000
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Articles on Bulgaria
Bulgaria's rise to fame as an international property destination started long before it joined the EU in 2007, and property investors who heeded the fanfare at that time have been amply rewarded for their forethought. Now, more than a year after the former Eastern Bloc country joined the cosy club of European unity there is still a very good case for buying property in Bulgaria. Not least is the scope of opportunities, from ski holiday apartments for sale in Bulgaria to property for sale on the Black Sea Coast to city rental properties, all of which can still be had for under £80,000.
Adam Godwin, marketing director for Dream Homes Worldwide says: "Some observers were quick to bash Bulgaria, as it was one of the first 'emerging property markets' and they failed to see the enormous potential of buying property in Bulgaria. Now an EU member, Bulgaria is surging forward politically and economically and those pioneer investors are sitting on significant profits while new investors have double digit capital appreciation forecast for the immediate future."
A report by Deutsche Bank's property investment arm RREEF accepts that there has already been significant growth in the country's real estate market in the last few years but believes "there is still good growth potential ... in terms of attractive opportunities for investment property in Bulgaria." The report also singles out the Black Sea coast as particularly attractive for buying property in Bulgaria as second and summer homes.
The country's 220-kilometre stretch of coastline on the Black Sea has become one of the biggest draw cards for international tourism and the property developers have not been far behind the trend. The northern coast centres round the city of Varna, which is served by direct flights from several UK cities. From Varna, the Black Sea coastal resorts radiate north through Golden Sands, nestled at the foot of a national park and with a four-kilometre stretch of white sandy beach to enjoy the temperate sunshine. Further north, developments have built up in Albena, Kranevo, Balchik and Kavarna, which all offer new-build apartments and holiday homes for tose buying property in Bulgaria.
Harmony Hills Villas in Albena, 38 kilometres north-east of Varna consists of just 22 villas, most with sea and mountain views, and is due for completion in spring this year. Prices start from £68,100 for a two-bedroom villa through Dream Homes Worldwide. In Kavarna the company is selling studios, one- or two-bedroom apartments with sea views at the low-rise July Morning Seaside resort on a front-line to the beach. Prices start from £30,100 payable in stages until completion in June 2010. Alternatively, Dream Homes Worldwide also has a selection of studios and apartments for sale at the River Park development in Kavarna from £37,700.
The northern coast is only one half of the Bulgarian Black Sea property fest, and Bourgas is the main entry point for people buying property in Bulgaria in the popular southern resorts that line the coast like Sunny Beach, Sozopol and Nessebar. In the hills above Nessebar and Sunny Beach, the Nexus development of apartments and villas is set back from the main bustle of the shops, bars and nightlife of the coastal resorts but close enough to enjoy it at your leisure. Prices start from £19,600 through Experience International, which is also selling apartments at Costa Bulgara in Sozopol, just south of Bourgas. The properties have views of the Kings Bay and start from £24,422.
If Bulgaria only had its coastline to tempt the overseas holiday-maker, interest would undoubtedly be high, but the country is also famous for its interior ski resorts, which have attracted another wave of savvy investors and holiday-home buyers to the country.
Roy Watkinson, sales director at Property Growth International says if it's a holiday home or investment you're after, get something close to the ski lifts. "Buying a property in Bulgaria in a ski resort will offer you more potential as your rentals will not only come in the winter months but the emergence of golf courses and more summer activities you will get rental in the summer months."
There are three main resorts that have seen demand and development grow in the last few years: Bansko, Pamporovo and Borovets.
Bansko is situated in the south-west of the country at the foothills of the Pirin Mountains and has grown into a popular ski resorts with modern facilities and good rental opportunities.
Property Growth International is selling one- and two-bedroom apartments at the White Snow resort and Spa in Bansko from £39,000. Taking Roy Watkinson's advice, the properties have good access to the lifts and skiing areas and the development includes an indoor pool and spa for apres ski.
The Maria Antoaneta Residence of 184 apartments for sale in Bansko is due for completion in December 2009 and all the properties will be fully furnished with open fireplaces and views to the Pirin Mountains. Prices start from £19,600 for a studio through Dream Homes Worldwide. And at the Paradiso Verde development, Experience International is selling a selection of studio, one- and two-bedroom apartments, just 200 metres from the piste, from £25,485.
The ski resort of Pamporovo is the sunniest of the country's main winter destinations, but with plenty of snow and a long ski season. The resort is set in the Rhodopes Mountains around 84 kilometres from Plovidiv or 250 kilometres from the capital Sofia.
Philippa Roberts of Barrasford and Bird is expecting a solid increase in the price of property for sale in Pamporovo in the coming year, as the popularity for quality property in many corners of Bulgaria is still high. Currently marketing the Grand Monastery in Pamporovo, she says: "We'd estimate an approximate 15 per cent rise due to the popularity of the resort, new ventures such as the Perelik Project [which plans to connect the Perelik peak in Pamporovo with the Mechi Chal peak, near Chepelare] and the construction of the highway linking Greece to Bulgaria, which passes close by to Pamporovo."
Apartments at the Grand Monastery start from £45,000 for a good size property with views and the development is built adjacent to the slopes to offer ski-in, ski-out living.
Alternatively, AGS Properties is offering a two-year guaranteed six per cent rental return at Clubmeadow in Pamporovo where studios start from £30,335 and one-bedroom apartments cost from £67,870.
Borovets is the oldest of Bulgaria's ski resorts although it is new money that is pouring into the resort and the nearby Super Borovets development. On the northern slopes of the Rila Mountains, Borovets has twice hosted World Cup Alpine skiing rounds and the slopes enjoy permanent snow from November to May. Rila Park is a complex of two apartment blocks located one minute's walk from the pistes of the Yastrebets skiing area in Borovets. Apartments at the development cost from £30,750 through Bulgarian Properties.
If a holiday-home at the beach or in a ski resort doesn't tick all the right investment boxes, then the capital Sofia is the final ace up Bulgaria's sleeve. Invariably a capital city with its steady rental returns and robust demand scores highly in an uncertain international market. While across Bulgaria property is still a growing market, the gold rush sentiment has settled down somewhat as the market has matured, and Sofia's long rentals and good capital appreciation continue to lure savvy investors.
Obelisk International believes the Bulgarian cities, and their surrounding areas, are the places to invest, pointing out that Sofia's property prices have increased by five per cent within the last six months alone. Experience International is selling studio, one- and two-bedroom apartments at the Belgravia in Sofia from £38,000. The development is located between Sofia's business district and Lozenets with views of the nearby Vitosha Mountain.
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First published in Homes Overseas Magazine April 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.