Property Investment Articles

Slope off to Bulgaria

Written by Chloe Scott
Featured in the Metro, November 15th 2005

Thousands of Brits are buying holiday apartments on Bulgaria’s ski resorts and Black Sea coast for half the price of similar properties in Spain.

But, of the two, it’s the ski resorts that are the safest investments. Resort areas boast a more mature market with locals buying there too, according to Amar Sodhi, managing director of property company Avatar International.

‘Ski resorts have been around even through communism,’ he says. ‘In 50 years’ time, the area will still be used for leisure. And the mountains’ natural boundaries restrict space so housing is limited.’

Plans for Bulgaria to join the EU by winter 2007 and its bid to host the 2014 Winter Olympics have also affected the snow-peaked areas. Kempinski Hotel & Resorts, for instance, has opened a five-star hotel in Bansko, one of the major resorts. And an 18-hole golf course, a key attraction for buyers, is being built nearby.

‘Land near the town centre was €25 (£17) per square metre two-and-a-half years ago,’ says Sodhi. ‘Now it is selling for €200 (£135) per square metre near the lifts.’

Despite a €200million (£135million) investment in the resort, property remains cheap – studio apartments cost €40,000 (£27,000) to €50,000 (£34,000).

But Bansko, with its quaint, stone-clad, pre-20th-centuary houses, is not the only hot spot. Skiers are also buying and renting in Borovets, a purpose built town nearer the capital of Sofia.

Budget airlines have improved the links to both towns. Wizz Air for example, advertises one-way fares as low as £20 from Luton to Sofia, which is 175kn from Bansko and 72kn from Borovets.

Those keen to secure a holiday home near the coast should think hard before taking a plunge on the Black Sea coast. Property experts say, unlike Croatia’s Dalmation and Turkey’s Lycian coastlines, the area does not present a strong investment.

Its downfall is the weather, according to Dominic Farrell of property investment company www.bewarethesharks.com.

‘It has the highest rainfall in the summer,’ he says. ‘Sunbathing weather lasts only three months which dampens jet-to-let prospects.’

Buying in Bulgaria is not for the faint-hearted. Like other emerging markets, land and property ownership issues are confusing.

While purchasing an apartment is secure, buying a detached house set on soil is not so straightforward as buyers must set up a limited company to make the purchase.

But demand for property continues unabated, with prices soaring by 40 per cent in the last two years.

Sodhi tips ski resort Pamporovo as the next hot spot. ‘It is very beautiful but not as popular because its nearest airport is Plovdiv, which only has direct charter flights to Britain in the winter,’ he says. ‘But an airline may choose to fly into Plovdiv to cut costs as it’s cheaper there. If that happens, everyone will want a bit of the town.