FRESH LOOK ON BULGARIA SKI RESORTS
OR
BULGARIA SKI RESORTS REVISITED

Bulgaria continues to top up the list of serious investors to its beach resorts and ski slopes fuelled by many powerful aspects apart from the scheduled accession to join EU in 2007.

However, the Bulgarian property market should not be viewed as a short term place to make quick money due to the above factor only. It is clearly a new addition to the investment market that could be compared with France and Spain at the infancy stages due to the versatility of its nature, low cost of living and all year round established coastal and skiing resorts that are here to stay.

Bansko
In the past year we have seen an increase of interest in ski resorts rather than beach resorts of Bulgaria, Bansko in particular. Properties in this charming town of Bansko have seen the most price increases in the past 2 years and continue to rise; although at a lower pace in close proximity to the gondola station is around €1,350 per m sq and up to €1,600 per m sq near the golf course now due to the increased entrance level prices. The success of investing in Bansko, like everywhere else in Bulgaria, is to be the first to know about the new project releases and pick the best units before the inevitable price increases during the process of the complex release and be more selective than ever to the facilities and the location of the complex due to the big influx of apartment's supplies. The latest does not undermine the rental potential of your investment as tourism is on the increase in this new fashionable skiing resort with currently around 90 restaurants on your doorstep. This was the first year when Bansko properties appeared on the books of the tour operators, like Thompson which is an encouraging trend. Bulgarian ski resorts remain the cheapest in Europe and will attract the beginners and intermediate skiers for years to come, which is always good news for those who bought a place here to enjoy skiing or get a rental income.

Investors who made their first purchases in Bulgaria a few years ago are always on the look out for alternative hot spots to enjoy higher capital appreciation. This year we will see a large increase of interest in Borovets and Pamporovo in particular due to the investment programmes approved by the government and local authorities.

Borovets
I personally anticipate that the Bansko syndrome will hit Borovets this year due to "Super Borovets" project. The enormous complex planned to encompass the towns of Samokov and Beli Iskar and Borovets resort aims to attract investments of about BGN 300 M in the construction of hotels and various types of equipment and will bring long awaited investment in the so far dormant ski resort. The 'Super Borovets' project will be funded by EU, governmental, foreign and local business sources and will span from 2005 to 2009 which will revitalise the whole region. This has already had an effect on the property market in the surrounding areas.

"Super Borovets" project will include the construction of a special 7,000-bedspace village, social communication center, entertainment sites, shopping centers, winter sports facilities, swim pools, tennis and golf courses. Within the projected three zones of construction, as per height above sea level, the ski tracks and lifts will be linked into a common network.

Borovets unlike Bankso is purely a resort not a town and with "Super Borovets" project on the way, it will certainly become a top skiing destination in the not to distant future. Borovets surely offers a better return on your investment not just due to the lower entrance prices and easy accessibility of the resort, but also due to its close proximity to Sofia (less than 1 hour drive) and its long established history of the oldest and the most reputable skiing place in Bulgaria. However this monopoly has been broken by its new rival Bansko. It is not promoted well by the agents due to the shortage of new and off-plan apartments, which explains why it receives much less publicity. New projects sell within a few months (example is Flora apartments in the heart of Borovets). We currently promote a new development called Villa Park Spa Mountain Residence Apartment Complex in the centre of the resort with excellent facilities just 200 meters from gondola station starting from €1,150 per meter square, which we anticipate will be sold in the next 3 months. One bedroom apartments are of generous size and at this stage the floor plans can be amended to convert them into 2 bedroom apartments, which would significantly increase the returns. Similar apartment can be purchased from €89,844 but there are not many of them around. This is a rare opportunity to miss as you cannot get better than this at such price in Borovets resort itself! I see it as a short to medium term investment of 3-5 years to enjoy the best of capital appreciation and high rental yields. This oldest and the most established resort has finally got the long awaited funds to wake it up forever from the years of stagnation and slumber.

Pamporovo
Pamporovo is one of the oldest ski regions like Borovets. It is a ski resort that is raising its profile in the eyes of the property investors while being a well established skiing destination already. Like Borovets it is undergoing a major investment plan although in our opinion due to its distance from Sofia, it is less attractive at present to Northern and Western Europeans. However, its popularity is growing with Greeks and the plans to build a new Bulgarian motorway will pass close to Pamporovo and the Greek border which will make it easier to access. With all the above, we feel that Pamporovo should be looked at as a medium to long terms investment in comparison with Bankso and Borovets. It is certainly worth buying there if you are looking for capital growth rather than rental income in the immediate future.

New top quality complexes and hotels are being built to facilitate the increase of European skiers and attract the investors - all these at affordable prices! At Hot Properties Overseas Ltd (Property Gems) we deal mainly with the investor clients and therefore select the projects in the prime locations ideal for letting. We always know about the new projects coming on the markets and advice the clients to wait until the next releases if the best investment opportunities have gone. We only deal with reputable developers to ensure the safety of your investments. For off-the-beaten track off plan properties in Bulgaria contact info@property-gems.co.uk or visit our Bulgarian section of the website

Provided by Elena Genovese Director of Hot Properties Overseas

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