Did Prices of Ski Resort Properties Reach Their Best Levels

www.tbmagazine.net

Polina Stoykova - the Chief Operations Manager of BULGARIAN PROPERTIES, analyses the property market in Bulgaria's biggest ski resorts in 2009 and gives forecasts for 2010.

Undoubtedly, the interest in the ski resorts in Bulgaria increases and when nature also adds to one’s snowy mood then you can surely imagine yourself sitting in a cozy apartment with a fireplace and a view towards the ski slope…
But let’s see what is actually happening with ski properties in Bulgaria.

In the last year prices in the three biggest ski resorts in Bulgaria – Bansko, Pamporovo and Borovets decreased with different rates. The greatest price decrease is in Bansko as the construction of new developments was biggest there and the competition is bigger. In the resorts of Pamporovo and Borovets prices also fell since the beginning of the crisis but not as much as in Bansko. The price decrease there is about 10-20% and properties hold higher prices which makes them less attractive than Bansko offers. Moreover, Bansko is the best and most modern resort in Bulgaria.

Undeniably, the main reason is the price decrease in this type of properties which were the first to be hit by the crisis. With some properties the decrease is up to 50% as prices went back to their levels in 2005. The statistics of BULGARIAN PROPERTIES shows that the enquiries are mainly for ski apartments with discounted prices.

Bansko offers a great variety of already finished properties which currently are offered at very lucrative prices. For example, in the last few months the prices in one of the luxury developments there decreased by 37% and now an apartment there can be bought for 35,000 Euro.

Clients constantly ask whether prices of holiday properties are expected to fall further. Generally speaking, this will probably not happen and if it does the difference with the current prices will be minimal. However, the choice of quality properties could be more limited than now. Only properties, whose prices are far from the realistic ones, could undergo considerable price change.

The rental market in Bansko is also quite dynamic. Firstly, the level of occupancy of the luxury holiday developments in Bansko, offering lots of extras and entertainment activities, was much higher in the low season in 2009 compared to the same period in 2008. The tenants are mainly Bulgarians. The second change regarding the tenants’ profile for the winter season is that while during the 2008/2009 season they were from various nationalities in 2009/2010 the expected tenants are mainly Russians, Greeks, Serbians, Macedonians and Romanians, as well as many Bulgarians. However, rental prices are not expected to increase as the big competition will not allow this to happen.

What we notice is that last year no new projects were begun and part of the ones that had started were halted. Currently, only finished properties attract buyers as for them it is important the site to be a functioning development that is rented to tourists, managed professionally and has additional extras like a swimming pool, sports facilities, massage services, etc. The most important factor is the price but combined with good quality.

Our 2010 forecasts for Bansko are as follows: in some of the prices will continue to fall because there will be sellers who will continue to have financial difficulties and will look to sell fast. We do not forecast the beginning of the construction of new sites. In the next couple of years investors will be more careful and will be warier when assessing the possibilities for the realization of new developments before starting them.

As a whole in 2010 the market will have to finish the process of self-regulation after which around the middle of the year there will be a gradual increase in the number of deals.

It is important to underscore that one mustn’t think that the property market in Bulgaria has collapsed. On the contrary, it is undergoing a specific development phase, the mistakes that were made during the fast growth in the last few years are being corrected and the trends follow the general economic situation not only in Bulgaria but in the world. At present the market is calm and offers good possibilities due to the more sensible prices and the big supply of quality properties. Everyone who is interested and has the means to buy a property can do so in an informed and unrushed way.

If you wish to receive the full analysis and 2010 forecast on your e-mail please click here

Apartments in Sofia for under 800 Euros per sq.m.

View our BEST BARGAIN properties

DISCOUNTED PROPERTIES


  read more articles

• Print
• Ask for free advice