Bansko Now and Then

Just over 3 years ago, Bansko, Bulgaria was a relatively unknown provincial Bulgarian town of some historical significance, enjoying relative anonymity from the Euro tourists. Popular with Bulgarians and their close neighbours, the Greeks, as a peaceful holiday destination with a long ski season nestled in the UNESCO protected Pirin National Park. The perfect secret Eastern European getaway. Unfortunately, nothing of value remains hidden forever and once word got out of the huge investment and holiday potential, Bansko’s fate was sealed.

Developers began buying parcels of agricultural land from local farmers and land owners and small developments began sprouting up in and around the town. A ski lift was installed and by 2003 big bucks were being invested in the town’s infrastructure. Overseen by the local municipality, this investment was part of the blueprint for the future of Bansko as a world class ski resort. The development dust is still far from settling in Bansko and it is still perceived as an ‘emerging’ resort offering cheap property for investors and owner occupiers alike, but are the opportunities to make money by investing in property in Bansko over or has it become overcrowded and time to look elsewhere? We decided to ask those who know; the agents on the ground, people who work there, the developers beavering away on new developments and those who have already invested in the town.

The Hotel Kempinski hotels are found in Europe, South America, Asia, and Africa. The Kempinski in Bansko is a luxury 5* hotel and it is worth considering the due diligence they would have applied to their decision to build in Bansko. It is a huge vote of confidence in the resort. Maria Yaneva heads up PR at the Kempinski Hotel in Bansko and said “At the Kempinski we saw a demand for a 5 star hotel in this new ski resort. 3 years ago, the town was much quieter in terms of tourism, now it’s becoming a true ‘All season’ resort with plenty of summer activities to compliment the world class ski facilities and we predict this growth to continue for years to come”.

Initially, developments consisted of straight forward accommodation. Perhaps a car parking space and a locker might be included. Now people want indoor swimming pools, health spas and a mountain view. We sell developments now from €1400 to 1700sqm which reflects the quality of the latest developments and the natural increase in value of property in Bansko. Client expectations are far higher now and this has forced a level of accountability and sophistication amongst developers that wasn’t there in the early stages. Are investors making money? Definitely. Most buyers will see a 10% paper increase in their property value during the sales phase of a development; parallel that to the growth that we’re seeing in the market and I think the annual figures are upwards of 20%. In fact Bulgaria’s National Statistical Institute reported a 36% increase in the prices of its cities’ property during 2005 – I didn’t see quite that level of growth on the ground, but it was certainly upwards of 20%.

An important consideration from our point of view is the fact that Bansko is a genuinely lovely part of the world all year round and is valued by our clients for holidays as much as for financial gain. The Mayor of Bankso has recently announced that they are starting to turn away requests to construct residential dwellings so that they can focus more on infrastructure – This is exactly the sort of step we have been hoping for as it will help to protect early investments and encourage new buyers by showing a considered approach to growing the resort.

Have potential investors missed the boat? Not at all, prices are going up every month and experts across the board are predicting 30% increases. We are very confident that our investments in Bansko will provide great returns and there is still plenty of money to be made there.

As a ski destination, Bansko offers everything and off-season the stunning natural environment ensures great year round rental potential. There are lots of great opportunities still to be had in Bansko and European buyers are showing great interest. There is still room for improvement amongst developers in terms of the infrastructure, services and quality of new developments and it would be good to see more transparent relationships between parties on these matters but overall I see Bansko as having the potential to be one of the best international ski resorts anywhere in the world. One could look to the Sierra Nevada resort in Spain for a comparable in terms of potential.

Now… Early this year the Daily mail awarded Bansko Europe’s Most Improved Ski Resort 2006. A glowing testimony to all the hard work and money that has been driven into the town’s infrastructure and facilities over the past few years. Praised by Olympic skiers and the general skiing public alike, Bansko has retained and improved upon its reputation as one of Europe’s top ski spots and yes, you can still make a lot of money buying property there...

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