WHERE TO BUY

Bulgaria has three very distinct markets, all of which possess their own characteristics and qualities.

Black Sea coast

Bulgaria’s Black Sea coastline has developed fast, and in many instances, you may have already missed the boat. Prices have been rising out of control in areas such as Sunny Beach and Golden Sands, and early investors are the ones who reaped the benefits here, seeing appreciation rates of 47%. Development still continues, with 22,500 holiday apartments built last year and a growth of 37% in property prices from August 2005 to August 2006.

It is important to be aware that the market in this area is in a state of flux and rather than being driven by demand, it’s providing a wide-ranging supply of developments. There are currently reports that those looking to sell are being offered less for their property than they paid for it as the demand for sales is non-existent. As such, those who are buying today are advised to look outside of the traditional resort areas, and try the northern areas of the coastline. Instead, if you buy a good-quality apartment with golf, spa or hotel facilities, you may well be able to secure some rental income. Always look to buy as close as you can to the beach and amenities – those furthest away are more likely to be affected by the drop in prices. The crashing market is expected to be saved by the advent of budget flights – it’s anticipated that Varna will see a 50% rise if these flights begin.

Varna and Balchik

The cosmopolitan city of Varna is one of Bulgaria’s better-kept secrets. The country’s third largest city, this verdant town is rapidly up and coming and has been put on the map thanks to direct BA flights into the city. Varna is popular with people either buying to let – generally to the locals – or many who are simply buying apartments in the city centre for themselves. Popular with expats, many of whom live in the surrounding villages, it is easy to integrate here thanks to the large retirement market. Being off the beaten track, you must make an effort to learn the language.

Just to the north of Varna is Balchik, an exciting new area which is seeing massive development thanks to the creation of three new golf courses and two new marinas – both golfing and sailing are major attractions in this area.

Despite the coastal location, you are not currently paying a premium due to the unknown nature of the area. Land prices are also lower than the rest of Bulgaria, around €850 per square metre for a four-star waterfront apartment, and rising to €1,200 for a luxury villa. This is a great area in which to pick up a bargain, whether an older property to renovate or a new build.

Ski resorts

A staggering 75% of Bulgaria is mountainous and it is among these towering peaks that the burgeoning property market lies. After Sofia, the ski resorts of Pamporovo, Borovets and Bansko represent the best investment opportunity in Bulgaria, especially with the new Perelik and Super Borovets residential developments.

When compared with ski property in areas such as France, Bulgaria offers great value for money. For between €25,000 and €30,000 you can purchase a studio apartment in Pamporovo, while prices in Bansko start at €25,000. Generally speaking, prices are steeper in Bansko due to higher demand, with costs varying from between €650 to €1,650 per square metre. In Borovets, prices start at €600 per square metre, rising to just under €1,600, and in Pamporovo from €640 and €1,550 per square metre.

Bankso represents 64% of the mountain resorts market with 8,000 units, although the whole ski market has grown by 152% since June 2005, with an increase in the number of holiday homes from 5,000 to 12,000 properties.

It’s clear that better opportunities lie in the mountains than on the coast. Bansko is more likely to offer good rental opportunities, while the cheaper prospects of Pamporovo and Borovets mean better capital growth. Bulgaria may well host the 2014 Winter Olympics, and this will mean growth, publicity and heightened demand for skiing in these areas.

Sofia

Sofia is home to one tenth of Bulgaria’s population and it’s a city which has mushroomed in size in recent years. Despite being an ancient city – one of Europe’s oldest, founded in 800BC – there are few remnants of its colourful Byzantine past, with more of the modern architecture of stucco-fronted buildings which post-date the communist years, and where most of the apartments can now be found.

Sofia is going up in the world. Popular with jet-to-let investors thanks to an influx of foreign investment–a number of multinationals have offices here now, including Porsche–property is currently selling at €800 to €1,300 per square metre, and selling fast. An apartment in central Sofia can secure you annual rentals return of 12%, mostly from long-term rentals. There are short-term lets to be had, although these are scarcer and less reliable. The most popular properties are newly-built developments.

The capital shoulders misconceptions of shabby communist tower blocks, but the reality–wide, leafy boulevards–is far from this. Currently undergoing something of a transformation, it’s attracting many weekend breakers, international business people and diplomats, sending the tourist market into overdrive. All this makes Sofia a great place to buy at present. Currently, you can buy a one-bedroomed newly-built apartment close to Mount Vitosha for just £20,000, or a luxuriously finished apartment and all mod cons, such as fitted kitchens and all furnishings, for £50,000.

Rural areas

Prices are cheaper in the countryside. The medieval capital of Veliko Tarnovo and properties along the Danube River and around the major town of Ruse are becoming popular, especially with retirees. Looking for beautiful countryside? If so, check out the surrounding villages of the Stara Planina mountain range which stretches almost the entire width of the country. A picturesque town of narrow, cobbled streets, Veliko Tarnovo offers spacious four-bedroomed country properties for as little as £20,000.

WHAT TO BUY

There have been massive levels of development in the country over the last few years, and consequently most of the properties available in Bulgaria are newly-built development homes, along with increasing numbers of golf and spa complexes. Following in the Spanish model, golf is destined to become the next big thing in Bulgaria. There are currently only three golf courses in Bulgaria, but several more–all with leisure and country club facilities–are soon to be opened, such as the golf and spa resort of Dolna Bay, where a three-bedroomed villa is retailing at £95,000.

Bulgaria’s rural properties are some of the cheapest in Europe, and for a meagre £8,000, rustic solitude is easily obtainable. Generally requiring renovation, traditional country houses often come with one or two large barns, and a substantial plot of land. A habitable rural property that requires minor modernisation can be acquired for between £12,000 to £15,000, which is an excellent price.