Bulgarian property - Ski resorts property in Bulgaria - Real estate, Market, Investments

     Bulgaria is crossed by mountain ranges - The Balkan chain, the Rhodopes, the Rila range and the Pirin Mountains. Rugged snow-capped peaks and soft green slopes, cool forests carrying the aroma of herbs and wild fruit, quick-flowing rivers and crystal-clear blue lakes, mineral springs and bioreserves, rare plants and game, large climatic and ski resorts and small picturesque villages with living traditions and folklore every Bulgarian mountain has its own characteristic appearance, fascination and beautiful name. This made Bulgarian winter resorts favourite skiing destination for many foreign skiers and snowboarders during the last 20 year. The regular foreign visitors of Bulgaria know the 3 most popular ski resorts here: Borovets, Pamporovo and Bansko. There one can find perfect ski slopes, either for beginners or professionals. Besides chair and cable lifts, ski equipment and teachers, the resorts offer all you need to have an unforgettable holiday - from five-star hotels with satellite TV, to romantic huts, small family hotels, and holiday villages with the more intimate charm of finnish chalets. The healthy climate, days guaranteed snow, the spectacular scenery, and reasonable prices tempt more and more foreign fans of snow winter holidays.

     In recent time region of Rilla and Pirin in close vicinity of Bansko resort is very precious and demanded by investors in real estates, and there plots are among most expensive in the country. In southwest Bulgaria real tornado of prices of properties appears which can make this region most expensive in the country. For Bansko itself the commentary is not necessary, first, as it is called in joke, "private town", for a long time, surprises us with prices of its properties, houses, plots and apartments. Construction of 15 complexes with apartments is now in process in Bansko.
     In the resort together with new hotels, there is mass construction of so called "apartment houses" which are offered in parts as vacation homes to foreign and Bulgarian buyers. Traditional interest is from British citizens with average financial abilities, which are ready to pay between 35 and 40 thousand pounds for apartment in Bulgarian resort. For them this is a good investment, because by lending property they receive recovery of investment in about ten year period.
     On the reasons of great interest and extensive building land in Bansko has increased its price between 3 and 10 times in last year. At the moment most expensive plots in the area of lift installation are sold at price of 300 euro/sq.m. and in the rest parts of the settlement at about 100 euro/sq.m. An year ago average price of plots in the area was between 30 and 40 euro/sq.m. Prices of vacation homes vary between 1000 and 1500 euro/sq.m., but in the new part of the town apartments with price of 500-600 euro/sq.m. can be found.
     New winter season in Bansko will be opened with almost 100 hotels. Only from the beginning of May until end of June municipality of Bansko has issued 11 building permissions for construction of new hotels.
     Now in the region 50 objects are in process of building, hotels and housing buildings, and part of them will be finished until the end of the year. Moreover significant number housing building and villa settlements are constructed which are designed for accommodation of tourists and for sale.
     Total open built up area of new hotels will be 25000 sq.m. Eight of new building hotels will be categorized with four stars, and the other will be with three stars. For comparison last year winter season was opened with almost 40 hotels, 5 holiday stations, one tourist sleeping room, and over 60 private accommodating places, with total sleeping base of 44 thousand beds.
     Many hotels in Banslo are with three stars at the moment. Among big four star hotels in the resort are Strazite, Pirin, Bansko, Tanne, Gazne and others. For the new season new five star of Kempinski hotel chain will be ready - Grand Arena. Building bum can put serious infrastructural problems in front of people for the year running. On this reason municipality has determined 3.3 million lv for improvement of infrastructure. According to information of the municipality investment for improvement of infrastructure can reach 10 million lv.
     Last year resort was visited by 400 thousand holidaymakers. Representatives of tourist branch register increased interest by British tourists to Bulgarian resorts. Information of resort shows that English and Greek are largest groups of foreign citizens in the resort. Serious growth of British tourists is also registered in summer resorts.
     It seems that now madness of investors is redirected to nearby towns and area around them. In this way for several months here are formed prices which compared with similar in other parts of the country look really impressive. Today hit is named Razlog. Here average price of plots offered for sale, which are not many in number, included in system of Bulgarian Property Ltd. is over 50 euro/sq.m. In comparison price of similar plots in Elenski Balkan is between 4 and 6 lv/sq.m. Plus that with the extras necessary for this type of properties - availability of electricity, water, vicinity to river or dam, wonderful view and vicinity to inhabited place. Record of prices in the region is 62 euro/sq.m. for plot of 4 decares around town of Gotse Delchev. The values for the rest of the towns near Bansko are the same. Here we are not talking for momentum thought of eccentric owner of land who has decided to become rich by its sale. Straight the opposite, these are testing offers for prices which numerous buyers are ready to pay and are in no way upper limit in scale of price growth.
     According to unofficial sources, in the region will enter serious and mighty foreign investor who will buy land for construction of several settlements of closed type, designed for rich coveters of winter nature from Europe and USA. This will automatically lead to greater increase in prices of plots here. But and without these prices are different from the other parts of the country, and this difference dues to the fact that, many wealthy Bulgarians buy properties here, with the idea to resell them in 3-5 years when region becomes one of most visited by tourists in our country.
     Prices of plots are not the only indicator which shows that region of Rilla and Pirin is on its way in becoming real golden resource for possessors of real estates. The condition with villas, apartments and houses is the same. From the beginning of the year they also increase their prices with serious rates. Tendency is also apparent in regional center Blagoevgrad - if in January average price of 1 square meter housing area was 410 euro in the beginning of May it reaches 540 euro. Price of houses in Petrich reached 300 euro/sq.m. in May, being 220 euro in the beginning of the year. Only in Kresna house with price of 180-200 euro/sq.m. can be found.
     There are two reasons for this serious growth in prices of all kinds of properties in Southwest Bulgaria. On first place region of Rilla and Pirin thanks to its nature is going to become one of big European winter resorts but differing from the Alps hotels and houses can be used all the year round, and also to attract tourists with high payability in other seasons. This means good engagements for local population and recovery of investments that were made. Second reason is road E-79 - the only direct way by which stream of people, stocks, and loads will flow from Europe to Greece. After Danube bridge-2 becomes reality significant part of tourist flow towards our southern neighbouring country will pass by from here. On this reason, the expectations are that as a result of pressure by European commission, one of priorities of next Bulgarian government will be construction of motorway on road section from Vidin to Kulata. And the tourist flow means construction of appropriate infrastructure, objects, hotels, attractions, normal access to historic sights, which are many in the region. So the prices here, no matter that they are high are logical.

     In last two years orders for acquisition of plots with main aim building of vacation settlements and zones for recreation in the region round Pamporovo increased many times, was announced by the communal administrations of Smolyan and Chepelare - the winter resort is situated in their zone of responsibility. For the last two years on territory of Pamporovo are issued three permissions for building of hotels and one for reconstruction, substitute mayor of Smolyan, responsible for construction announced. However from the community gave cart blanch for construction of several vacation settlements in the region round the resort (part of them are in the areas Raikovski livadi and Stoykite).
     The building bum in the resort and the region around it is still ahead. At the moment about ten housing complexes of closed type are constructed. Still at the end of this year and in the beginning of the next, people expect appearance of many vacation apartments on the market which are now in process of construction. For vacation apartments in close vicinity to the resort, which are going to be completed until the end of this year, are wanted prices, of 1055 euro/sq.m. Depending on their location and their parameters, prices of apartments vary from 850 to 1200 euro/sq.m. and in most cases properties are bought off plan. The information about property buyers is very arguable. According to one people most clients are Bulgarians and according to other, most clients are British or Irish citizens. For the houses in the vicinity of resort are wanted between 108 - 220 euro/sq.m. and for some luxurious properties offer price is over 540 euro. Towards this date the most traded are plots and especially vast terrains near ski slopes. Firstly terrains were bought predominantly by speculators which aim was future resale and realization of profit. Afterwards enterprisers with serious investment intention appear on the market.
     In last twelve months plots have increased their price with about 30%. Now prices of terrains out of regulation near Pamporovo vary between 60 and 70 euro/sq.m. and there are also offers for over 100 euro /sq.m. Area Stoykite becomes very attractive, and there at the moment terrains out of regulation are between 40 and 50 euro / sq.m. If existing plans for connection of the area with the resort via lift installation get realized, the price of ownership will increase significantly. Representatives of local authority say that pressure for issuing of building permissions by the side of investors is very high. According to the opinion of building enterprisers there is no danger for destruction of environment, because places for building up determined by the community are a few and they are designed as separate building points of concentration.

Where prices in Pamporovo and the region go to?

• New house in village Stoykite with floorage 350 sq.m. and yard - 300 sq.m. Appropriate for family hotel. Price is 55000 euro.
• Old stone house in centre of village Sokolovtsi with floorage 330 sq.m. and yard - 400 sq.m. Price is 60000 euro.
• Villa in Pamporovo resort with floorage 90 sq.m. Part of luxurious settlement with 24 villas, everyone possessing its own yard, completion - to key until the end of 2005. Price is 95000 euro.
• Apartment in Pamporovo with living-floor space 89 sq.m. in frames of modern complex for family recreation in the centre of Pamporovo. In process of building. Price is 84 145 euro.
• Plot in regulation in Pamporovo with surface 4200 sq.m. Close to first station of lift installation with possibility for construction of hotel-cafeteria. Price is 1.3 million euro.
• Plot in regulation situated in village Stoykite, with surface 9000 sq.m. appropriate for construction of vacation settlement. Price is 255000 euro.
• Plot in village Sokolovtsi out of regulation with surface 7164 sq.m. Situated on main road Chepelare - Smolyan, Price is 110684 euro.

     According to us Pamporovo with fast speed becomes most exclusive ski/mountain destination in Bulgaria. Differing from overcrowded concrete landscapes of Sunny Beach and Bansko, Pamporovo enjoys forest views in the heart of Rodopi Mountain. Our clients from Great Britain and Ireland recognize these qualities of Pamporovo and look for high standards not only in construction but also in internal design and conveniences. The leading properties on the market are with no doubt those of closed type, because they possess beneficial bonuses for security and lending. Recently Pamporovo resort realized one of its most successful winter seasons, with record visiting, which shows good future for the complex.
     Key factors which will keep increase in prices of properties in Pamporovo, include not only promise for opening of new frontier point with Greece in south, but they predominantly include future services and inevitable coming to Bulgaria of budgeted airlines like Uiz Air (Hungary), Raian air and Easy Jet (Great Britain) and (Ireland) New ski slopes. Lift installations and improving of infrastructure will determine growth in prices of properties which we can modestly prognosticate to 15-20 % annually for the near future. Demand of properties by British and Irish citizens is high and we expect that it will continue to increase. Greater interest by British market will be seen in April 2006 when investors will be able to buy properties in Bulgaria by their pension fund - taxation preference which British financial minister announced in April this year. While there is absolute necessity and market of private properties in Pamporovo develops, investments will increase status of resort as place for global tourist and property market. Local housing planning shall determine high standards for construction to ensure beautiful nature and that the ecology of region will remain untouched and preserved.
     The main factor moving prices in Pamporovo and whole Bulgaria is demand. There is great interest by British and Irish citizens towards Bulgarian resorts and they are also main clients in apartment complexes. After bum on Black sea many of foreign clients directed themselves to our mountain resorts. Investment in real property in Pamporovo is very good one. Location of resort, its vicinity to Greece and Turkey, and its climate make it very attractive. This is highest resort in Bulgaria 1630 m over sea level for Pamporovo. In comparison Bansko is about 900 m. Future development of Pamporovo is ahead, now 10 new apartment complexes and hotels are constructed. You know about restrictions concerning gambling in Greece and Turkey. With the opening of new frontier control point (FCP) southern of Smolyan it will become much faster and nearer for fans of gambling from our southern neighbouring countries to visit Pamporovo, instead traveling to Plovdiv or Sofia.
     Interest by foreign citizens is directed to buying of apartments in apartment complexes. The interest towards apartments dues to several reasons - building corresponding to European standards, possibility for lending of home via large tour-operator companies, and realization of good incomes. Namely that constant interest increases prices. At the moment they have reached 1100-1200 euro/sq.m. We expect that growth to continue in next 3-4 years but with more normal rates. We can categorically say, that there will not be decrease of prices.
     Overbuilding on Pamporovo will not happen. Pamporovo is situated on vast area and places determined for building up by the community are a few and are located in separate building points of concentration.
     Good idea is to invest in the neighbour smaller ski resort called Chepelare. This place is a normal Bulgarian town with residential areas, but also with 2 main ski slopes (one is the longest ski piste on the Balkan peninsula) and chair lifts. Chepelare is certainly developing as a ski resort and in the near future it will become a busier place and all investors will benefit from their presentation here.
     We must also mention the neighbouring holiday village Stoykite (just 5-6 km from Pamporovo) where many local wealthy people own holiday property. Municipality plans exist to connect Chepelare and Stoykite with lifts to the main lift system of Pamporovo and these will become a fact the more we are going towards 2007 and our joining to the European Union. Other good idea is to invest in rural properties in the nearby located villages around Pamporovo and Smolyan (15 km from Pamporovo). These rural locations will develop as destinations for rural and eco tourism because of the beautiful nature here and will certainly benefit from their proximity to Pamporovo.

     The most visited ski resort is still Borovets. Crowds of skiers visit the resort every year. Even not as popular as the French or Swiss ski resorts, Borovets is a famous international ski resort with significant number of slopes of any type, Gondola lift starting from the very centre of the resort, very well developed night life, nice hotels and excellent catering. The resort is much better than many other ski resorts in Western Europe offering great amenities and benefits. Because Borovets is not a town where local people live (it was purposely built ski resort) there is almost no property for sale inside the resort. Most of the available land has been already occupied by local powerful companies running their hotels and resort infrastructure, and the rest of the land is protected by the law and building permits are extremely difficult (almost impossible) to get.
     There is another smaller skiing area called Malyovitsa (own pistes and lifts), just half hour driving from Borovets. There are few villages around where it's worthy buying real estate property.
     Also it would be a good idea to invest in residential property (houses + land) in the neighbour villages at distance of 8-20 km from Borovets. We from Bulgarian Property Ltd highly recommend town Samokov (10 km. from Borovets) and villages in the region as a good investment opportunity.
     At least 300 million levs will be invested in Borovets, the strategy for development of resort envisages. Money are for the construction of new resort complex - Supper Borovets, which is planned to separate resort on three zones - Samokov, Borovets and Beli Iskar. The main performer will be joint company between municipality of Samokov and private investors. Project envisages construction of new slopes, lift devices and hotels. Expectations are plan to be ready in the autumn. Now sleeping base in the resort is insufficient and it can not accept all tourists. In last three seasons vacationers in Borovets have increased with 25 %. Earnings from tourism have also increased with 25 %. Plus that new slopes and lift devices shall be constructed. New devices will also pass through Tsarska Bistritsa.
     Tourist settlement with 7 thousand beds will be established in the region of Samokov and Borovets. Complex will have base for social services, children's place, sport devices, tennis courts, pools, golf club. In region of Beli Iskar, construction of tourist settlement with 1000 beds is planned - low building and one architectural vision. Establishment of parks along the riverside of Beli Iskar and Bistritsa is planned and also export connection between settlements. Nearby more important points of ski zone, ski slopes will be constructed, which end parts will join and daily tourist centers can be established.
     Investment interest to these projects constantly increases, however building can start earlier in 2007, after ownership becomes clear and cadastre and common regulation plan of region is made. This will be second stage of project "Super Borovets", while third phase will be acquisition of mountain zones situated on 1400 m over sea level.      According to conception advantage is that region is competitive in accessibility to international airports in comparison with other resorts in our country and abroad. Positive influence has possibilities for development of balneology tourism with mineral sources in Dolna Banya and Belchin Banya.