Buyers Guide to Bulgaria

Sofia

Sofia, the capital and home to 1.5 million people, is one of the fastest emerging cities in Europe following in the wake of Prague and Budapest. The pace of change is evident from the number of new developments, international brands and infrastructural projects. It should be no surprise that Vitosha Boulevard, the commercial centre, now commands the 26th highest retail rental prices in the world.

Factors such as greater multinational presence, a buoyant stock market and a growing university population are fuelling the growth of the investment property market. More tourists are visiting Sofia for weekend breaks, the volume of which will increase further to the expansion of the international airport and access to cheap flights.

Attractive returns are on offer from investing into the Sofia property market and it would be wiser to act sooner whilst entry prices are still relatively affordable.

Bansko

Bansko is a charming historic town with breathtaking 360O mountain views. It is the fastest growing ski resort in Europe and its profile will further benefit from being a front-runner to host the 2018 Winter Olympics. Skiing itself lends itself to over 16 different runs of all grades and the length of runs is being increased with a new ski lift in the pipeline.

Bansko is rapidly evolving as an all-seasons resort and therefore lifting expected rental yields. The Ian Woosnam-designed golf course (opening in mid-2008), has attracted considerable interest. Other summer activities include hiking, mountain biking, fishing and horse-riding.

When highway improvements are complete, the journey to Bansko will be reduced to just two hours from Sofia airport (150 km), which is comparable to the journey time for most Alpine ski resorts. Furthermore, in the Bansko region itself, a new domestic airport is proposed.

Despite some over-supply concerns, fewer new developments are now being granted planning permission. There is a current shortage of mid-high quality tourist accommodation during ski season. As tourism continues to increase, the strong rental demand for high quality property in desirable locations (near the ski lift or golf course) makes Bansko a sound long term investment.

Pamporovo

Set in the pine forests of the Rhodope Mountains, Pamporovo is a relatively more tranquil resort for skiing and outdoor activities. The ski runs, which total 25km in length, cater for all levels and are particularly suitable for beginners. There is an additional 38km of track for cross-country skiing. As the most southern skiing resort in Europe, it benefits from high levels of sunshine and more comfortable winters.

The new road to Greece will enable a 90 minute journey to the Mediterranean coast which, together with the summer activities, will enhance the status of Pamporovo as an all-seasons resort. Pamporovo is accessible by road to Plovdiv (85km) and Sofia (260km).

At present, Pamporovo cannot compete with Bansko for quality of skiing but price of holidaying, rental and ski schools is low. The long term potential is huge as the entry level into the property market is more affordable.

Black Sea Coast

The Black Sea coastline is hugely popular for tourism during the summer, drawing foreign and Bulgarian tourists alike. Places like Sunny Beach and Varna have attracted substantial interest from both, investment buyers and those buying for personal use.

Given the rapid boom, Sunny Beach, for example, is sprawling several streets back from the seafront due to what appears to be negligent planning restrictions. There are common reports of creaking infrastructure which is actually breaking in some places and leaving drains blocked and potholes in roads.

To benefit from greater rental income and long term capital growth, investors should opt for mid-high entry developments with good facilities which are affiliated to tour operators. Alternatively, moving away from the action, to some of the smaller and more exclusive up and coming resorts like St. Vlas or Pomorie is appealing to many investors.

The trend of such 'personal use' holiday home purchases on the Black Sea coast is understandable given the low cost of living and stunning coastal scenery. However, I am a firm believer that reaping the returns of a stronger investment property allows one to enjoy a more luxurious holiday anywhere in the world!