In many ways it is difficult to talk about the property market in Bulgaria at the moment – in much the same way as buy-to-let was one of the symbols of the boom in the UK property market, Bulgaria symbolised the vast expansion of the overseas property industry beyond the traditional holiday destinations into the realms of the new Europe.
From this point, investors began to realise the full potential of investing in countries that were still not quite developed, and were able to get in at the lower levels of the investment curve. This is still continuing with developments now in destinations like Mongolia, Nicaragua and Ukraine attracting interest from investors across the country.
From this explosion of property interest in Bulgaria, some parts of the country became overheated with investors coming in and buying vast swathes of new developments. The price growth, pressure on the construction of new infrastructure, and market speculation about how quickly and how far property prices could rise resulted in huge overbuilding in some areas, where some developments still uncompleted and unsold.
As with many overseas property markets, perhaps the most successful investments are away from the most popular areas, and it has long been the view of many that the best opportunities in one of the newest members of the EU were in the ski and city developments. The ski season is longer and perhaps more reliable than the summer season on the coast, and as the resorts are being fully planned from scratch, they are geared to making the most of the summer mountain activities that make a property in a ski resort a potentially perfect investment.
Considering the way the credit crunch has changed the outlook of property buyers in the UK, the market for overseas property investment has changed accordingly, with previously-bullish investors now hedging their bets a little more. In this circumstance, a property in Bulgaria’s ski resorts could be an ideal holiday home, offering varied opportunities for year-round use for a price that is significantly less than can be found in ski resorts elsewhere in Europe.
The Super Borovets resort project is one of the purpose-built destinations that will be a great summer and winter location. Less than 50 miles from Sofia, Borovets has a ski season lasting from December until May, while the golf courses being built nearby just hint at the potential of the summer activities to be enjoyed. The Borovets Gardens development is scheduled for completion before the end of 2009, and will be just 50 metres from the base of the new chair lift. Dream Resorts has properties in Borovets Gardens at a price 15 per cent below market value as pre-release offers – starting from just £37,000.
While the Black Sea coastal resorts are undoubtedly beautiful, they have taken a knock over the past months – once the darling of the overseas property press for its investment potential, buyers have been disappointed by lacklustre tourist numbers to rent the properties they bought in the biggest resorts, while some have had concerns over the quality of finish of what has been delivered to market. Another issue has been the fact that development of infrastructure in the region has been lagging behind the speed of property development, leading to some developments being completed before the full range of services around them has been put in.
In the event of the market for UK buyers and visitors cooling slightly, the Black Sea coastal resorts have found support coming from another direction, as newly-wealthy Russians have been targeting the region as one of their favourite destinations in which to invest their roubles. As the middle classes in Russia grow, they are seeking to acquire the trappings of wealth that they have seen enjoyed by British buyers across Europe’s holiday destinations. Property is one of the biggest outlets for this, with the developer of Europe’s tallest skyscraper in Moscow seeing no fall in bookings for apartments, even in the global economic slowdown. For those Russians seeking to emulate their peers, but perhaps without the means to do so in the most exclusive developments, Bulgaria’s Black Sea coast has proved an ideal spot. Many Russians holiday there now, taking up some of the slack in the rental market, while there has also been increased activity reported in the resale market in the bigger resorts.
For all this, there are some superb developments to be found still along the Black Sea coast – the key is to know what you are buying, avoid the over-built resorts, and be realistic about any rental income you are expecting to receive. One of the most impressive projects available on the coast is Kavarna Bay, being marketed by Obelisk International. Moving away from the original roots of Black Sea developments, Kavarna Bay has a high-end specification, and has been designed by award-winning architects LP Consult. The development is being sold at a generous 26 per cent below market value, with the average price across the 697 unit site at €132,917 (£105,640).
Get more info about the Bulgarian property market at - http://www.buyassociation.co.uk/
And impartial advice on overseas property in several markets at - http://www.buyassociation.co.uk/
