Overseas Real Estate Blog

I just got back from Bulgaria which included some holiday time with perfect skiing in Bansko and trips to Velingrad, Sapareva Banya, Sofia and the area north of Sofia around Svoge.

BANSKO:

Firstly Bansko. Well as always there is so much comment on the fortunes here that I will not try to make any extensive observations. The focus this time was the skiing. Better than ever with my new grand slalom Fischer skis and a first rate instruction from Kim, a holidaying qualified English ski instructor and Bansko apartment owner, my enthusiasm for skiing has never been higher. Thanks Kim!

Blue skies and sunshine near perfect snow the ski run down from the Plato joining the Tomba (black run) with its half pipe shape is as good as any on piste run I have skied on anywhere!
Here's a taste of the quality skiing conditions - me captured by Kim on video tackling the Tomba run (named after Alberto Tomba)

No queues and this was 30th March and pleased to report that the season is set to be good for some time yet. The town probably had more people strolling around than on the pistes which reminds me that Bansko makes for a pleasant non skiers destination in the same way some Alpine resorts I have seen like Courmayeur in Italy or Chamonix in France are.

Getting back on topic to Bansko property, it was clear that the downturn in apartment sales, and ban on new building permits has stopped new construction projects starting. Resales are picking up now, and well located apartments are still selling in the used market at around 25% increase from two years ago. However, less well located property some distance away from the gondola I heard anecdotal evidence of sales made at lower prices. There is no doubt the building site feel still exists but, depending on area in Bansko, this year will see more roads go in, more finished buildings and by the start of the 2008/2009 ski season Bansko will feel more complete. New projects have to be special and I like design of Edeland Ridge near golf course and also the yet to be launched Bansko Plaza just 150m from gondola.

I was particularly heartened by talking to skiers on the gondola over on holiday who were impressed with the service they had received in their hotel/apartments building and also from the ski instruction. The area of service is a permanent challenge in Bulgaria and Bansko especially but I think we are seeing many signs of improvement. As for food, this varies but generally all enjoy the Mehanas (Taverns) of which there are over a 100 scattered around the town. The Happy End Bar on a Friday and Saturday night in the ski season offers a top rock band and DJ that creates a really lively atmosphere and last weekend was no exception. Warning: beer here costs a lot more than outside Bansko and many other places but at about £1.70 a pint is still not too bad but, when 80p is still normal, its worth being prepared.

As for value compared to most other countries Bulgaria is still amazing value and a family of four can ski here including accommodation, flights and transfers for £1,000. The food on the mountain, ski hire, instruction eating out all make useful savings for a family ski holiday. With the growing tourism from Greece, Macedonia, Serbia, Russia and Ukraine as we as other western european countries I suspect the 600,000 visitors this season will be exceeded next year by over 10%.

Six new golf courses are at planning stage and will supplement the current Ian Woosnam 18 hole course now about to be declared fully open in May. More ski pistes then facilities are likely to grow over the next 5 years. With the airport at Gotse Delchev, 30 mintes away, now having being sold to an investor by the local municipality then there is some expectation of improved access - but when is not known.

VELINGRAD:

Moving on to Venlingrad just over an hour from Bansko makes a good day trip (as does Melnik for wine tasting and Sandanski for shopping). Velingrad is hugely popular with Bulgarian visitors and was also a holiday place for wealthy Russians for its mineral water. Good to see new hotels already completed and a general feeling of prosperity returning to the town.

The wide pedestrianised promenades and open vegetable market make this an good alternative to Blagoevgrad to stock up on general provisions.

SAPAREVA BANYA:

Returning to Sapareva Banya saw the start of the luxury chalets on the mountain side overlooking the town. The views are wonderful and it is this area of how Spa tourism will progress and some would say offers even greater prospects than Velingrad because of its proximity to Sofia and its gateway to the seven rila lakes.

New roads are complete before construction and because of this land prices here are up over 50% in a year and local interest is high here as land is still a tenth of the price in Sofia just an hour away. We expect more news here as the first developments are noticed by investors who are keen to find new hot spots. Rental returns are better than you would think as all year round Spa tourism as well as corporate training is a real possibility. Arguably much better than a ski resort alone!

SVOGE AREA:

Talking of proximity to Sofia I like the look of property and land to the north of Sofia in the Stara Planina (Balkan Mountain range). Again here we have scenic and dramatic landscape property with good access to Sofia. South facing houses are plots are to be found. My visit to the valley villages around Svoge impressed me. Here's a video to give a taste of what I saw:

At the moment very little foreign investment here but some savvy Bulgarians have just started to buy here. This is quality commutable territory with 18 trains and 20 buses a day to Sofia and a house/land here could prove a good long term buy.

I see a shortage of reasonable priced houses in Sofia generally but am also mindful of a general oversupply of old rural houses in Bulgaria due to declining rural populations. This area is close enough to Sofia to be an exception.

When I discovered locals just starting to buy land in Sapareva Banya then it was well worth taking a closer look. The reason is that Bulgarians, just like us, have a tendeny to follow what others do. The trick is to be at the beginnig of the interest to maximise on the price curve which can be quite spectacular.