Investment property in Bulgaria
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Articles on Bulgaria
Feeding the Eastern European property epidemic over the past two years, under-value opening offers designed to generate quick first wave sales have worked a treat in post-Communist Bulgaria, with early-bird property investors now reaping the dividends as their off-plan purchases 'come of age'. With the country now fending off serious competition from the next generation of Eastern Bloc whippersnappers, more conventional criteria such as location and quality build is coming into play, with greater numbers of portfolio property investors staking a claim in both sand and sea, city and spa. "Tourism was a mere blip on Bulgaria's radar until a few years ago," explains Lewis Solomon of Balkan Property Services. "These days, it accounts for 15 per cent of the country's GDP, with a fast-paced property market following suit, year-on-year price acceleration of 12 to 15 per cent in mainstream resorts now the norm. Bulgaria's EU accession in January 2007 will also push the reward scale for prospective buyers of property for sale in Bulgaria, with wealth filtering down to the local market, creating demand for better housing."
Black Sea Coast
Bulgaria's coastal growth corridor has something of a split personality, the northern fringes characterised by calm seas, fine grain beaches and spa towns, the mineral soaked charms of resorts like Elena and St Constantine providing therapeutic relief from the bustling excesses of Golden Sands. Head south and the vista levels out as the sea temperature rises, the thick forest of the Strandzha Mountain contrasting with hundreds of cosy, dune-backed beaches and rocky bays, larger than life Sunny Beach and off-shoots Nessebar and St Vlas attracting the lion's share of investment to date. "The coastal market is seasonal," explains Phillippa Roberts of Barrasford and Bird, "with a May to October window. Locations in close proximity to spa towns are a good buy-to-let bet, as are resorts within easy reach of the marinas and golf courses."
North of Varna, the harbour town of Balchik is a case in point. Still relatively undiscovered, its chalk cliffs tower over surprisingly lush countryside, with a rugged coastline making inroads into the Dobrudzha and Frangen Plateau. "The resort is targeting a more upmarket clientele," says Martine Davies of Gascgoines International, "with funding in place for a new marina and several golf courses and a sprinkling of trendy restaurants dotted along the waterfront." Located close to Balchik Botanical Gardens and the Yacht Port, the agency is marketing Balchik Heights, a 260-unit resort with communal pools and gym. Studios start in the region of €39,000 (£26,000) rising to upwards of €120,000 (£80,000) for a three-bedroom penthouse, witha rental pool option.
Marked by an indelible wow factor in the near vicinity, is the Lighthouse Golf Resort. Pitched on a plateau with panoramic sea views, this luxury complex will comprise four distinct residential neighbourhoods including a Lake and Marina District and centrepiece 18-hole championship golf course designed by Ian Woosnam. Prices with Experience BG in Phase One start from €49,000 (£32,500) for a one-bedroom apartment rising to €105,000 (£71,000) for a two-bedroom garden pad.
Head south past the historic town of Bourgas and you come across the oldest city on the coastline, the workaday harbour of Sozopol. Liked by artists and writers for its casual ambience, the cobbled old town nestles in a sheltered horseshoe bay, the offshore islands of Saint George and Saint Ivan providing a rugged outlook to shore life. "This area is very much up and coming," says Scott Fenton-Palmer of Sozopol Property Shop. "Plans to turn the port into a marina are underway, with a 'new town' nudging up alongside the old quarter." Off-plan prices range from €27,000 (£18,000) for a studio to upwards of €120,000 (£80,000) for a penthouse apartment with sea views. Renovation projects are thin on the ground downtown, with more choice in surrounding satellite villages. Sozopol Property Shop has a charming three-bedroom village house requiring mainly cosmetic work in the hamlet of Rosen for €52,000 (£35,000).
Ski Resorts
Bulgaria has been working hard on its ski brand of late, pitching easy care turnkey ownership and crowd-free pistes to a younger, cost-conscious audience-snow homes in top resorts a fraction of the price of the Alps. "Key domains are yielding rental returns of up to seven per cent at present," confirms Ali Ozturk of Regnum Homes, "effectively double those of their coastal counterparts because of year-round demand."
Bansko is also spreading its dual season wings, with a coterie of value-added facilities including an Ian Woosnam championship golf course and state-of-the-art equestrian centre. "Land prices have doubled since 2003," adds Ozturk, "bolstered by a move towards higher quality build and the resort's candidacy for the 2014 Winter Olympics. Major improvements to infrastructure have been made in the last year, with ski lifts, gondola stations and a full-scale expansion programme underway."
Oozing piste appeal is a new breed of designer Apart Hotels, with the much-hyped Four Seasons White Fir Valley Resort setting a benchmark in quality. Under-floor heating and 'Smart Home' IT systems complete with iPod docking stations are standard in all units, with an on-site wellness centre, creche and bespoke concierge service taking the strain out of apres-ski. Scheduled to complete in May 2008, one-bedroom duplex apartments start from €95,000 (£63,500). An alternative tailored experience is The Orchard Resort, 'designed to inspire', with its use of intimate communal spaces, encouraging homeowners to move out of their residential zones and 'engage' in their surrounds. Outdoor areas have benches and ice sculptures, while indoor zones invite guests to cosy up by the log fires. Conventional on-site facilities are overshadowed by 'out of the box' alternatives including an ice rink that converts into tennis courts in the summer, and a cinema. Studio apartments with Bulgarian Dreams start from €47,000 (£31,500), with one-bedroom apartments from €80,000 (£53,200).
Located on the northern slopes of the Rila Mountains, Bulgaria's first and best-known purpose-built resort has leapt into super league status. The launch of the 'Super Borovets' project, an EU funded initiative, promises to revitalise the entire region around Borovets town into a world class skiing and tourist area when it is completed in 2009. "Property values are creeping up nicely, with average client spend around the €55,000 (£37,000) mark," confirms Solomon. "We bought primarily to rent," explains first time buyer Keith Hern from Kingston on Thames, who signed on the dotted line back in March, shelling out €90,000 (£60,000) for a two-bedroom apartment in Borovets Heights resort. "Letting opportunities are pretty close to a 12-month season, with a range of activities on tap during the summer including golf, fishing and hiking."
Divided into two main arteries, the Markoudjik domain offers superior above tree line skiing, with brand new lift facilities and a state-of-the-art light and sound system, allowing for night skiing and snowboarding. A veritable beehive of activity, downtown Borovets, with its tavernas and open-fronted shops, has a lively buzz to it. A lower-key alternative can be found in the satellite village of Maritsa, just 12 kilometres from the resort. Bulgarian Properties are marketing Chalets Montebello, a gated complex of luxury-detached chalets with prices from €120,000 (£80,000) for a fully furnished three-bedroom unit with sauna. On the agency books closer to Borovets, a budget of €23,000 (£14,000) will secure you a traditional two-bedroom village home to renovate with views overlooking the pistes.
Pamporovo, Bulgaria's sunniest resort, is located in the southeastern Rhodope Mountain range. The nearest airport one hour away is Plovdiv, with low coast airlines due to start operating in 2007. Orpheus Valley Apart Hotel is a complex of 200 luxury apartments located just a few minutes from the ski lifts. The gated complex will have 24-hour reception and caretaker service, with apartments ranging from studios to spacious two-bedroom apartments. Prices with Emerging Real Estate start from €42,000 (£28,000). Construction is also underway on Panorama Resort, a five-star apartment complex with rental pool option. Prices with Bulgarian Venture start from €41,500 (£27,000).
While smaller units fulfil the buy-to-let niche, detached chalets are attracting seasoned ski buffs looking to upgrade to a higher bath-to-bed ratio. Dotted over the surrounding mountain pastures, Forest Nook Resort comprises tastefully appointed, two-storey chalets with terracotta flooring, pine-clad terraces and satellite TV. Prices with Property BG start from €85,000 (£57,000).
Sofia
Nestling in the lee of the Vitosha Mountains, Europe's highest capital sports a vibrant cafe culture, tree lined boulevards and acres of parkland, with weekend snow haven Mont Vitosha just a snowball's throw away. Ambitious plans to bring the capital up to par with European hubs Rome and Paris have started in earnest; with premier districts like Gorna Banja delivering steady year-on-year capital appreciation of 20 per cent. "The government backed Central City Plan will undoubtedly open up investor choice," says Deborah Fox of Emerging Real Estate, "with demand underpinned by a shortage of middle class product and favourable demographics."
En vogue neighbourhoods include Vitosha Boulevard, Doctor's Garden and Ivan Vazov; gated and managed developments appealing to both domestic and overseas markets. Biodar is marketing luxury one-bedroom suites in the Ovcha Kupel neighbourhood next to Gorna Banja for €31,975 (£21,500). An attractive alternative in the Manastirski Livadi district, just ten kilometres from Vitosha, is the Dahlia Residence. Dream Homes Worldwide has one-, two- and three-bedroom apartments with managed rental facilities on-site. Prices start from €32,800 (£23,000). A semi-rural alternative can be picked up just a few kilometres from the city. Located near the fishing and hunting village of Svoge, A Property in Bulgaria has a traditional semi-renovated three-bedroom house with wooden floors, balconies and expansive garden for €50,000 (£33,500).
A lofty 1,800 metres above sea level, yet just 22 kilometres south of Sofia, lies Bulgaria's highest ski resort, Mount Vitosha. The Austrian Ski Federation has been brought in to head a €20 million development of ski facilities at the resort, and with a transfer time of just 15 minutes from Sofia airport, property prices are tipped to rocket. Barrasford and Bird is offering Phase Two one, two and three-bedroom duplex apartments at the Monastery, a complex located on the outskirts of Sofia in Simeonovo, with prices starting from €67,000 (£45,000). Located just 70 metres from the ski lift, the resort will also feature a pool and gymnasium. "With Sofia so close, year round rental incomes will come from both corporate and leisure markets," concludes Roberts.
First published in Homes Overseas Magazine January 2007.
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.
