Quality Properties in Bulgarian Ski Resorts with Very Lucrative Prices

In the last few months buyers have been showing increased interest in holiday properties in the big ski resorts in Bulgaria. However, the greatest interest is in the ski resort of Bansko and it is the place with the most concluded deals with holiday properties. The main reason for that is the decrease in the price of this type of properties which were the first to be hit by the crisis, as with some properties the price discount is as high as fifty percent and prices returned to their levels from 2005. At present, this type of properties is more accessible to buyers – not only to foreigners, but to Bulgarians as well. Another reason for the market segment to become more dynamic is the approaching of the winter season which inevitably increases the interest in mountain resorts and holiday homes.

The statistics of BULGARIAN PROPERTIES shows that buyer enquiries are mainly for ski apartments at discounted prices as the company site has a special section towards which there is great interest:

DISCOUNTED OFFERS

Bansko offers a wide choice of already finished properties which are sold at very lucrative prices. An example of such an offer is one of BULGARIAN PROPERTIES’ top listings – the luxurious development Belvedere Holiday Club in Bansko. In the last few months prices in the development dropped by over 37% and now an apartment there costs about 35,000 Euro at 699 Euro per square meter.

Another top property marketed very successfully by the company is Belmont Bansko which is finished and has been functioning since 2008. During the summer BULGARIAN PROPERTIES managed to sell the last 10 properties in the development at an average price of 650 Euro/sq.m.

What should also be mentioned is another example of successful sales realized by the company in the unique Redenka holiday complex set not far from the town of Razlog. The development was finished in 2007 and became one of the hits of mountain tourism in the area of Razlog and Bansko. Through the excellent management and letting services provided by PROPERTY MANAGEMENT BG Ltd. Redenka boasts a second successful summer season. A couple of years ago BULGARIAN PROPERTIES sold all the properties in the development to buyers of British and Irish nationality. As a result of the crisis in the two countries now the buyers are selling their properties in the development at very reasonable prices. This summer the company sold three chalets in the development, as well as a few apartments.

However, the reasons for the more dynamic market in Bansko this summer must be sought not only in the drastic decrease in prices. What attracts more and more tourists are factors like the good quality of the construction and the many extras which the developments offer, including outdoor pools which practically make the mountain a great place to be all year round. Another important factor is the successful management and maintenance of the development, as well as the renting out of the properties to tourists which is provided by the company Property Management BG Ltd. The company reports a 90% collection of the annual fees for maintenance and management which each owner must pay.

Such a combination is very rare among holiday developments in Bulgaria and it is the main reason for a number of properties to remain unsold in those developments. Nowadays, buyers are very careful and rational taking into consideration all negative and positive features of the property they have chosen.

Bansko offers the most attractive prices

In the last 12 months the prices in the three biggest ski resorts in Bulgaria – Bansko, Pamporovo and Borovets, decreased at different pace. The decrease is greatest in Bansko but this is only logical as the construction of new developments there was most dynamic and the competition is higher. The prices of holiday homes in Pamporovo and Borovets also dropped since the beginning of the crisis but not at such pace as those in Bansko. In Borovets and Pamporovo the decrease is by about 10-20% and holiday homes retain higher prices making them less attractive than properties in Bansko. Moreover, another advantage of Bansko is that it is the best and most modern ski resort in Bulgaria.

Will property prices in ski resort continue to fall?

The question which the clients of BULGARIAN PROPERTIES most often ask is whether the prices of holiday homes are expected to fall further. Generally speaking, prices will not continue to fall at this rate and if they fall further the difference with the current prices will be minimal and the choice of quality offers might be more limited than at the moment. Only properties whose asking price is well above the actual market price could undergo considerable change, i.e. if you are planning to buy a holiday home in a ski resort in Bulgaria, now is the right time to start looking for it.

Rental level of holiday apartments in the ski resorts

According to data from the reservation system www.ApartmentsBulgaria.com, which is a trade mark of Property Management BG Ltd. – the property management company managing chains of holiday homes and hotels around Bulgaria, there is a change in the activity on the rental market in Bansko. This change follows two directions: firstly, the level of occupation of luxury holiday developments in Bansko during the low season in 2009 is considerably higher compared to 2008 as the tenants are mainly of Bulgarian nationality; secondly, the profile of the tenants for the winter season has changed: while during the 2008/2009 season they were of various nationalities, the tourists for the 2009/2010 season are expected to be mainly Russian-speaking.

Regarding price levels there is a decrease which is different for the different development depending on their category and the extras they offer. However, no increase in the rental levels is expected – the great competition in the supply will not allow this to happen any time soon.

Where in Bulgaria and what type are the most sought-after properties in the segment?

The most sought-after ski properties are the apartments in Bansko. It is the apartments because of their lower price and the fact that they can be managed easily and rented out to generate additional income. The resort is Bansko because the ski apartment market there offers the biggest variety of offers and the best prices.

Currently, prices of apartments in Bansko vary between 300 EUR/sq.m. and 1,200 EUR/sq.m. BULGARIAN PROPERTIES data show that properties priced between 450 and 600 EUR/sq.m. are the most sought after as in the more luxurious developments prices increase to 700-900 EUR/sq.m.

This data shows that Bansko remains the most sought-after destination for buying a holiday home due to the excellent sports and recreational facilities. The negative trends like the excessive construction, the bad infrastructure and the lack of good planning had a disastrous effect on the resort’s image. However, in reality a lot of people choose Bansko and the resort’s name can be cleared with hard work and good prices.

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Copyright: 2009 Bulgarian Properties Ltd. All rights reserved. For further information or advice please contact us on tel.: +359 2 9 11 50 or e-mail: info@bulgarianproperties.com. The use of this article by third parties is allowed only with proper quotations of the source www.BulgarianProperties.com and the Author of the article. The data in this material has been collected by the Author and Bulgarian Properties Ltd. and is presented for information purposes only. We have made every effort to ensure the accuracy of the data. However, Bulgarian Properties Ltd. cannot be held responsible for loss or damage as a result of decisions made based on the information presented in this article.
© Bulgarian Properties Ltd. 2009.

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