Bigger interest in holiday homes in Bansko

In the past week the world was watching Bulgaria and the ski resort of Bansko, it being the host of the Alpine Skiing World Cup. For the first time in Bulgaria there were four competitions – the men’s slalom and giant slalom and the women’s downhill and super giant slalom – featuring all the best skiers on the planet.

This event increased immensely the interest in Bansko as a tourist and property destination. The experts from BULGARIAN PROPERTIES reported such a trend in the last few weeks. “Of course, we cannot talk of tangible results in terms of an increase in the number of sales, but in terms of image and advertisement this event has given a lot to the resort. I think this is the right way to attract interest to the resort and, if done regularly, in the long run it will have a very positive effect. It must be noted that Bansko hosts quite a few events all year round which are strengthening its position as a leading tourist destination”, comments Polina Stoykova, Chief Operations Manager of BULGARIAN PROPERTIES.

In fact, there has been more interest in Bansko since the beginning of the year. Experts say the main reason for that are property prices which are very lucrative. The reported average sale price in January 2012 was 576 EUR/sq.m., as offers started from about 350 EUR/sq.m. “This is bound to attract the attention during the high winter season but regretfully we cannot yet speak of an increase in the number of deals”, adds Ms Stoykova.

The observations of the consultants also show more interest in the resort of Borovets. The asking prices in the mountain resort decreased by 18% in 2011 and at present average prices there stand at 750-850 EUR/sq.m. The asking prices in the other big winter resort – Pamporovo – are similar to those in Borovets. According to the data of the company the average asking price for a property in Pamporovo is 750 EUR/sq.m.

Since October 2011 BULGARIAN PROPERTIES’ index of the listing prices of property in Bansko remains more or less the same - 55% lower compared to that in 2008. This is a clear indicator that the price decrease in Bansko has finished and now there are monthly fluctuations from -0.5 to about -2%. Experts note the fact that there is still a gap between the asking prices and the actual sale prices of about 20% and this means there might be more changes. Still, it must be noted that the asking prices also include more expensive properties for which there is no market at the moment and that is why at present no deals are concluded in that segment, experts add.

The interest this year continues to be focused on cheaper apartments. Deals in Bansko are concluded at 450 EUR/sq.m. or 20,000-35,000 Euro. In Borovets the average price of property deals is 600 EUR/sq.m. The most expensive deal BULGARIAN PROPERTIES have concluded this year is in Borovets, for an apartment in a top development in the center of the resort for 60,000 Euro. The cheapest apartment the company sold is in a development in a village close to Borovets – for 18,900 Euro (350 EUR/sq.m.).

Polina Stoykova, Chief Operations Manager of BULGARIAN PROPERTIES: Smaller boutique projects will make attractive investments

- Ms Stoykova, what investments will be suitable for Bulgaria’s mountain resorts in the future? When would there be need for new properties?
- It is too early to talk about any need for new properties – there is big supply which will not be exhausted any time soon. However, there will be interest in smaller boutique projects and in houses in the resorts and the villages around them.

- Is there interest in properties in the seaside resorts in the first months of the year?
- In the last two years seasons do not make a lot of difference when it comes to the interest in properties in seaside resorts. This year, like in the beginning of 2011, the beach property segment is quite dynamic and more deals are concluded there than in the ski resorts. This is due to the traditionally strong interest of Russian buyers in our seaside resorts. Prices in the resort of Sunny Beach remained relatively stable in 2011, with monthly fluctuations of -1 to -5%. In the last 3 months we are noticing a bigger decrease of the average asking prices. In January the average asking price of apartments in Sunny Beach was 650 EUR/sq.m. compared to 830 EUR/sq.m. in January 2011, as this price is also closer to the actual price at which deals are concluded there - 500 EUR/sq.m.

- Will the Russians once again be the main buyers of holiday homes this year?
- Russian buyers most definitely continue to be the most active on the holiday home market. This trend is expected to continue in 2012 as their interest will continue to be focused on our beach resorts, but they will also start focusing their attention inland.

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