Ski resorts and holiday properties in Bulgaria

Last year a fully furnished studio in Bansko with an area of 30 sq.m. was sold to Bulgarian citizen at a price of 11,800 Euro or 393 Euro per sq.m. This is definitely the lowest price of a holiday apartment not only in Bulgaria, and probably in Europe, Bulgarian realtors said. The question is whether the prices in ski resorts have reached the absolute bottom. And, if so, whether a market development of these properties will follow up after that similar to this summer and autumn sales growth which was reported in the summer resorts.

Correlation
”Tourism and real estate market definitely should be considered as interconnected and influencing each other. If a tourist season is successful, we can expect a subsequent success in the property sales in the resorts,” Polina Stoykova, the Chief Operations Manager of BULGARIAN PROPERTIES, said.

In the last 2-3 years this was marked on the real estate market in the summer resorts as far as Russian buyers are concerned. The same was the situation before the crisis in regards to the UK market - the first was marked with the increase in the number of British tourists and just after that an interest occurred in buying properties in beach and mountain resorts.

The foreigners who bought properties for investment purposes, without even to have seen them, came after that. After the beginning of the crisis the leading motive to purchase a holiday home is not an investment and renting out, but a personal use for recreation and vacation. This supposes a tourist interest and appropriate facilities and entertainments. Therefore, property agents have high expectations for the 2012/2013 winter season. Aside from that forecasts and the first data promise a successful season, the ski property prices are at their lowest levels and it certainly strengthens the interest even of the Bulgarian buyers. Russians will continue to rule the market on the sea, on which they dominate to such an extent that it is on track to become dependent only on those customers.

Great season and good sales
In the autumn of 2012 several agencies reported a growth in beach property deals. Bulgarian Properties reported even a 30% increase in sales compared to the previous summer. Over 90% of buyers are Russian citizens.
However there is an interest from Bulgarians living abroad who buy a beach vacation home, led by nostalgia. The overall increase in the number of tourists last summer was 10%, while the rise of visitors from Russia and CIS countries reached 34%, Ivo Marinov, Deputy Minister of Economy, Energy and Tourism, said.

The initial data for the winter season are also positive – a growth in reservations has exceeded 10 per cent, and for the Russian market is expected to be even more. Another question is whether the interest of Russians to beach resorts will spread to destinations such as Bansko, Borovets and Pamporovo. Anyway Russians are already well informed and if they wish to acquire one more holiday home in Bulgaria, this will not happen at any price and after a thorough market research. Therefore the leading motive for the offering of a property should be the adequate pricing of the properties based on their characteristics.

Advantage of low prices
Bansko is definitely a leader in low prices among the winter resorts. Nowhere else in Bulgaria deals are concluded at prices below EUR 400 euros per sq.m, while there it is an average value. Transactions with holiday properties over EUR 30,000 are actually missing and buyers are not only foreigners, but also more Bulgarians who are fans of winter sports. Pamporovo is becoming a serious rival to Bansko. The prices in both resorts are almost equal - the average price of the sold apartments in Pamporovo is EUR 430 per sq.m.

The properties in Borovets are traditionally more expensive, but the prices now are very attractive there – the concluded deals in 2012 were at an average price of EUR 630 per sq.m.
Now in the ski resorts for sale are offered mainly apartments in complexes that are finished and furnished - this type of property attracts the most interest.

Undeveloped spa niche
Recently a small niche of the holiday property market has begun to attract attention, mainly because of the potential of the spa resorts. Experts said that the property market in the spa resort towns like Sandanski, Hisarya, Devin, Sapareva Banya are developing chaotically, as the supply is very limited. However according to the President of FIABCI Bulgaria (The International Real Estate Federation) Irena Perfanova, the holiday properties in spa resorts can be developed year-round, which it is their biggest potential. Among the mentioned spa resorts Sandanski has a more developed market.

According to real estate agents, in the last few years there were concluded deals mainly with studios and one-bedroom apartments for EUR 30,000 - EUR 40,000 and less - two-bedroom apartments for EUR 50,000. Most buyers are Russians there, mostly over 60 years-old seeking a property for treatment in spa resorts.

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