Gulf real estate investors eye Bulgaria`s tourism market

Bulgaria, comprising three distinct regional micro-property markets – the mountains, the city and the Black Sea Coast – has experienced a significant shift between its regions’ dominance in terms of real estate sales.

One of the largest agents of Bulgarian real estate reports that it is one of the hottest property markets in the world, where Gulf investors are increasingly investing their money. By mid 2006, the mountain regions accounted for up to 50 per cent of the country’s real estate sales replacing the Black Sea Coast as market leader, which accumulates just 30 per cent.

The mountain resorts in Bansko, as part of the bid process, have received and are set to continue to receive, large levels of investment in order to bring them in line with major European ski destinations and up to Olympic standard. Even if the country is unsuccessful in getting the Olympics, its bid will have helped build some high-end winter resorts that are already extremely popular and providing an alternative to the more established resorts situated with in the Alps.

Both private and public investment has resulted in major improvements to infrastructure and consequently property prices have risen by a staggering 13per cent since 2004. Average prices currently stand at AED 7400 per square meter compared with AED 5700 in just two years ago.

Prior to Bulgaria’s Olympic ambitions the fastest growing region was the Black Sea Coast. However, despite the mountain boom, areas such as Balchik are still seeing significant property price increases due to a number of determining factors.

The introduction of direct flights to Varna International Airport from Europe is stimulating further growth in the area, opening up the region. The Company projects a growth in property prices in the Balchik area of 18per cent by 2007.

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