Holiday Market Has Just Started Developing

Stroitelstvo Gradat Weekly, 21st May 2007

Holiday estates’ market in Bulgaria has just started developing. According to some estimates, prices are expected to go down because of surplus offering. However, foreign investors think that our country’s market of Holiday estates will continue developing in the following several years. They say that the recently discussed over saturation of market is not likely to take place.

Bulgaria is compared to Spain in terms of real estates market development, as a tourist destination, and in terms of its turning into a golf destination.

Holiday estates market in Bulgaria has just started opening towards the other European countries. Our country meets all requirements for tourism development, such as favorable nature and experienced professionals. In spite of that, the sector has some basic problems that are to be overcome: improvement of infrastructure, bureaucracy, etc. The country and businessmen have to constantly take into consideration the tourist’ demands, since the market is constantly changing – say contractors
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Three new groups of buyers have entered the sector during the last nine months – Poles, Russians, and Romanians, announced Adrian Musgrave from Bulgarian Properties. In his opinion, every group of clients has different requirements – the Russians are seeking luxurious estates on the very coast. He expects that the Romanians will soon turn into a serious player on the Bulgarian market of Holiday estates, although they still cannot displace the British and Irishmen from the first place. Market tendencies have to be carefully observed. The demands of the buyers in Bulgaria are increasing more and more, and thus the product level is growing. “If a product is under the market level, it just has to be improved”, said Manuel Ferry Sanchez, President of “Ferry Group”, during of BalREC, the conference for real estates markets in Bulgaria, Romania and Serbia, which was held two weeks ago.

More and more contractors and investors try to meet the requirements of clients. Infrastructure is also an important factor in the development of projects in the sector of Holiday estates. A very strong connection between high-quality projects and high-quality infrastructure is required. However, this has not been achieved in Bulgaria yet. The present situation in Bulgaria is similar to that in Spain 10-12 years ago, thinks Ferry. The country does its best for the development of the sector, but this also has its limit. Businessmen have to make efforts for the development of the sector and constantly exert pressure on government.

“Another important thing to be perceived is the fact that someone who buys an apartment and then resells it before the end of the building works, is not an investor, but a speculator”, says Ferry Sanchez. When the investment balloon punctures (which was the case in Spain some years ago), speculators lose money. Two years ago, the prices of residences around Marbeya reached 400 thousand Euros. Presently, there are nearly 5000 unsold estates in the region, although their price is approximately 200 thousand Euros. “In such cases, reducing the estates price does not help. Sometimes speculators really influence the market, but they often lose because of that”, thinks Ferry.

“The development of golf tourism is of great importance to the Holiday estates sector”, said Adrian Musgrave, representative of Bulgarian Properties. This is an extremely strong market – only in Europe, the registered players are more than 6 million. On the other hand, buyers of houses in golf complexes do not always play golf. They are just in search of nature in combination with good service.

Golf players often come together with their families, or in groups. They demand the possibility for playing on several different courses during their Holiday, and at the same time, having access to different services. Short distances between golf courses in the mountain and those on the Black Sea are a serious advantage for Bulgaria. It is also very important whether the player will come back again, and that depends on his overall experience. Until now, all golf complexes in Bulgaria are on a very high level – with courses on tournament level. At the same time, all of them offer additional services, such as SPA centers and balneological tourism.

On the other hand, the development of the sector very much depends on local players. At present, the number of the registered players in Bulgaria hardly reaches 180, but their number has to be 30-40 thousand, says Manuel Ferry Sanchez, whose main aim for Bulgaria is the golf courses development. “I do not think that there are too many millionaires in Europe, and that products are constructed only for the high market levels”, said Manuel Ferry Sanches. A network of courses has to be constructed, and these courses do not necessarily have to be on a tournament level. However, they should be offered at reasonable prices, and thus attract local players. The very lack of Bulgarian players hampers the development of the sector, since we cannot rely on foreign tourists only.
A multitude of international and local investors think that golf sector is the potential of the country. There are only three active courses in Bulgaria at present, but at least five more are being constructed and those far gone in construction are nearly two times more. However, the municipalities, which are among the main proprietors of large lots, constantly receive enquiries. More that six offers have already been registered only in Razlog, and three of them have already started as projects. After their realization, the region will turn into one of the possible golf destinations in Bulgaria. “In spite of the sector’s development, still there is no concrete project for golf course near Slanchev Briag. It is intolerable for a country that aims at turning into a golf destination not to have any golf course near its biggest sea resort”, said Musgrave.


View Properties for Sale Near a Golf Course.

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