Why investing properties in Bulgaria

Investing in golf properties in Bulgaria haven't been a likely opportunity for UK investors in the past, but things has changed so we provide an overview of Bulgaria and its culture.

Why invest in properties in Bulgaria?

Bulgaria is a small country rich in ancient culture, scenic beauty and endless charm.

The country is situated in south-eastern Europe and it occupies the central part of the Balkan Peninsula. Its northern border with Romania passes along the Danube and its eastern border is the Black Sea.

One of Bulgaria’s biggest assets about investing in properties is its tourism trade, with stunning coastlines, great golf courses and an incredible mountain range, making the country extremely popular all year round.

Bulgaria also has around 600 natural mineral springs, and the baths and health spas are frequented by locals and scores of international tourists. Although the facilities need to be updated, the spring water in Bulgaria is rich in minerals and flows freely from a natural source.

Bulgaria is a country steeped in history and contains nine UNESCO World Heritage Sites, like the ancient city of Nesebar, which is an eclectic mix of cultures, including Thracian, Greek and Roman, as well as being one of the most important centres of sea-borne trade in the Black Sea.

What is the weather in Bulgaria?

As Bulgaria has such a contrasting landscape, from the snow-capped peaks of the Balkan Mountains, to the sunny Black sea coast, the climate tends to be variable.

In general, the weather in Bulgaria is typically Mediterranean, with hot, dry summers and cool, wet winters, particularly along the coast.

Dan Johnson, Managing Director, comments:

“Bulgaria has preserved its tradition and embraced modern times by brilliantly balancing ancient values with new ideas, making it a country that offers something for everyone.”

Opportunities for rural tourism in Bulgaria

One of the latest opportunities for tourists in Bulgaria is Rural tourism and many of the UK visitors find very attractive to buy one of the cheapest properties in this magnificent places.

Opportunities for rural tourism are offered in a number of villages situated in environmentally clean regions. Usually this small hotels and private homes, are in the mountain regions, near reservats and national nature parks, like in the Rhodopes, Pirin, Rila and Balkan ranges with well preserved old crafts, architecture and rich Bulgarian traditions and folklore. There is a large choice of guest-houses, (from one-star- to 4 star hotels). Many of the offerers include home made traditional meals, eco-tourism in reserved nature parks. This is one of the cheapest way for visiting Bulgaria and the easy way for acquaintance the Bulgarian culture and to feel the Bulgarian hospitality.

You will be surprised from the prices of food and drinks, cheep is also transport, attractions, clothes and many more stocks. But choosing the rural tourism for different kind of vacation, you will find that some of the smallest private houses offering this service will offer you all this thing for free - as a part of the Bulgarian hospitality or as a part of the price -type all inclusive. In the mountines of Bulgaria you cam find properties for less than 5 000 Euro . The small hotels in countryside areas offers a price for one bed room for 5 to 6 Euro per night.

This vacantion will be more pleasant for you than the luxury resorts with expensive prices and aggressive salesmen. Probably you will enjoy this peace and beautiful nature and will want to buy a home for the future vacations or for permanent living.

The price for two floors house in Bulgaria`s countryside is starting from £5000 or even cheaper in some regions like Vidin and Dobrich . Some of the properties are in calm villages - located in a beautiful area close to the sea coast, with a very good road connections. Very close to the local regional center houses or villas are not so cheap, but compares to other countries in Europe are several times lower. The prices of Bulgarian Properties are still increasing and are attractive for all foreign investors and property buyers.

UK customers stoped to invest in Bulgarian resorts

British home buyers have disappeared from Bansko, a leading Bulgarian ski resort and until recently a hot spot for people seeking moderately priced holiday properties.

Since the global credit crunch took hold, purchases by UK investors of Bulgarian properties priced between EUR 45,000 and EUR 90,000 (GBP33,500 - GBP 67,000) have fallen sharply, according to Sofia-based estate agents.

Hugh Fraser, of Sofia-based LS Property, said: "Our research suggests that only about 30 apartments were sold in Bansko last month and the buyers were Russians and Greeks." This compares with sales two years ago of more than 500 properties a month to UK and Irish buyers.

Such a steep decline suggests Bulgaria's holiday home boom, which has focused on Bansko and Sunny Beach, the leading resort on the Black Sea coast, may be over.

Property developers have been offering discounts of 8-12 per cent in buildings nearing completion in Bansko. Meanwhile, prices for new apartments in Sunny Beach have fallen by 7-8 per cent.

"Attitudes have changed. With house prices stagnating, it is much harder for UK customers to release equity to buy a second home," said Rossen Dimov, managing director of Rockarch Estates, a London-based agency selling Bulgarian properties.

Mihail Chobanov, chief executive of Bulgarian Properties, one of the country's biggest estate agencies, believes that about 50 per cent of UK investors who took a punt on the Bulgarian market four years ago are now trying to sell their properties. "Speculative buyers want to cash out and move on," he said.

While tightening credit conditions have given the market a decisive downward push, Bulgaria's appeal for UK investors was already starting to fade.

Rapid development at Bansko and Sunny Beach resulted in an over-supply of lower-priced apartments, putting a severe strain on local infrastructure. An estimated 85 per cent of UK investors bought properties off-plan without having visited Bulgaria.

On arrival in the country many were disappointed by mediocre construction quality and local developers' lack of concern for the environment.

Rental incomes on the Black Sea coast have been lower than expected, according to investors. "Estate agents talked about a six-month season and yearly returns of 6-8 per cent. The reality is more like three months and under 3 per cent," said David, a Dubai-based IT worker who bought at Sunny Beach two years ago. He declined to give his full name.

Two years ago 90 per cent of Rockarch's customers were UK investors, including a sizeable number of expatriates living in the Gulf states. Mr Dimov said the client mix changed last summer, with cash-rich Russians replacing buyers from the UK.

"In the past six months 60 per cent of sales were to Russians, 10 per cent to Greeks and Poles and only 30 per cent to the British," Mr Dimov said.

Julia Titova, of Best Real Estate, a Moscow-based estate agent, said Bulgaria had overtaken Montenegro and Spain as the most popular foreign country for Russians wanting to buy a holiday home.

"Bulgaria is seen as an excellent place for family holidays," Ms Titova said. "It is nearer than the Mediterranean and it is more affordable than the Russian Black Sea resorts."

Information By Kerin Hope and Theodor Troev
Financial Times