PineForest Resort - Bulgaria

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

In 2007 more than a half of the direct foreign investments were in the real estate and construction sector of the Bulgarian Economy according to the Bulgarian National Bank. For the period between 1998 and 2006 the real estate sector holds 16% of all direct foreign investments, which was the third after the manufacturing and financial consultancy. The real estate and construction sector for the last past two years counted a fast growth with 325% and 295% respectively in 2006. The growth for 2007 isn’t that significant like in 2006, where the investments in the real estate sector increased wit 24% and the investments in construction increased with 43%. Totally for 2007 the direct foreign investment are little more than 6 billion EUR, where for the real estate go 2.15 billion EUR foreign investment and in the construction sector 0.7 billion EUR.

The top investor country with 15.9% of all the direct foreign investments come from United Kingdom, meanly buying real estates in Bulgarian summer and winter holiday resorts as an investment or second holiday home. On the second place we have countries like Netherlands (9.5%), Austria (8.4%), Belgium (7.8%) and Greece (7.2%).

This post shows 2008 first quarter analysis of studio apartment market in Bulgaria.

Clearly from the table we have a few key changes of prices, when it comes to studio apartments. In the table with yellow are marked cities with a significant increase. These cities are Ruse (Danube river biggest city), Stara Zagora (the biggest populated city in South East of Bulgaria), Blagoevgrad (the district where we have one of the most popular winter places Bansko) and Vidin (another Danube river city). In red, however we have cities like Dobrich and Veliko Tarnovo where the price of studio apartments have decreased, not by much, but still decreased. In all the rest of the areas in Bulgaria we have a slow increase.

click on the pictures below to enlarge graph, table and demographical analysis.

Recent statistics from GfK Bulgaria show the following tendencies of how the people are buying apartments in Bulgaria:

 

In a few words these statistics show us that buying an apartment in Bulgaria is not that difficult or expensive. Most of the Bulgarian apartments are either inherited or purchased by cash. Both of these methods equal in total 73% of Bulgarian apartments purchased. Only 6% of the buyers sell an apartment in order to buy another one. Only 21% of the people that are buying Bulgarian apartments are either arranging credit or a mortgage.

Studio Apartment in PineForest Resort - Bulgaria include:

• fitted kitchen with fridge, sink and cooker
• double bed extendable sofa
• dinning table with 2 chairs
• TV with table
• wardrobe
• coffee table

BATH:

• fully tiled
• sink
• toilet
• shower

One Bedroom Apartment in PineForest Resort - Bulgaria includes:

LOUNGE:

• fitted kitchen with fridge, sink and cooker
• sofa and arm chair
• TV with table
• dinning table with 4 chairs
• coffee table

BEDROOM:

• double bed
• TV with table
• chest of drawers
• 2 bedside cupboards
• wardrobe
• dressing table with mirror and chair

BATHROOM:

• fully tiled
• sink
• toilet
• shower

Bulgaria offers between 4 and 6 months of snow, and for snow boarders this is the perfect place to practice their favourite sport.

Watch a small amateur video of Snow boarding in Bulgaria

Bulgaria is a very exiting opportunity for investors of all kinds, claims Paul Watchorn, a Bulgarian property expert. The potential for obtaining a holiday home or retirement property is outstanding, said Paul talking at an investors evening focusing on off plan developments, and retirement homes in Bulgaria. With the cost of living rising so much in Briton retirees and pensioners are looking to sell their home in the UK and buy a purpose built place in the sun. Off plan property in Bulgaria offers extremely good value, leaving money in the bank to earn interest, Paul said. Paul Watchorn is a Bulgarian property expert advising people on investments, building and property purchase in Bulgaria.

The Bulgarian property market has been on an increase over the last few years. The prices are expected to continue to rise in 2008, although is will be less than the 30% of 2007. The potential is great in this region, particularly with the industrial and commercial property. The city of Sofia is rapidly growing and shows some of the better potential.

“Many people are looking at Bulgaria for vacation investments. The region offers amazing natural amenities, including hiking and bike trails, coastline along the Black Sea, beaches, historical attractions, and skiing. The weather is also temperate.”

The economy has also been playing a large roll in the increase of the property market. Tourism continues to rise, and the local, regional and national governments are all working hard to improve conditions to take advantage of the tourism dollar.

Since 2002, the annual growth of property values has been around 50%.

In Bulgaria, the property buyer pays most of the costs associated with the purchase. The transaction fees can run up to 25% of the total purchase price (and sometimes a bit more).

The property rental market tends to be stronger in the ski regions than along the coast, mainly due to the longer skiing season.

Rental incomes tend to run around 6% to 12%, with the higher rates being generated by mountain properties.

Properties away from the tourist areas tend to be more rustic and need much more work. They offer little rental income (if any) and are better investments for individuals who want a second home away from the rest of the world. Typically these properties can be found for a very good bargain.

source: http://novinite.com

Rather than buying a farmhouse in France or an apartment on the Costa Del Sol, the Daily Telegraph reports that investors are now tempted to buy properties in Bulgaria.
A key factor in determining the new location in which to invest is price and investors have been experiencing enormous returns. For example, a large one-bedroom flat in PineForest Resort - Bulgaria, 1h from the Black Sea coast and Burgas International Airport purchased a year ago for just under 25,000 pounds fully furnished, would now cost 35,000 pounds.

“Only now in Bulgaria you can buy one bedroom apartment for 35,000 GBP (52,500 EUR) at well located mountain resort where you can enjoy activities like golfing, skiing, fishing.”

Marc Todd of Dosop, an international property company based in West London, raises the concern that some of overdevelopment in the big resorts such as Sunny Beach and suggests that there is a large supply of less desirable properties coming on the bulgaria property market.

The Times in London writes that Bulgaria is now one of the top destinations for ski properties due to factors such as the low property prices and inexpensive ski passes.

“During the summer this sparsely populated, largely rural country offers a wealth of activities such as hiking, fishing and mountain biking, as well as the fabulous beaches of the Black Sea coast. The numerous historic towns, unspoilt villages, castles and churches are also waiting to be explored.”

Properties in ski areas can earn up to 12% rental return according to property investment firm Assetz. This return is potentially double that of coastal properties due to their all year-round attraction.

The number of UK holidaymakers visiting Bulgaria increased by a staggering 36% in the past year. This has lead to an influx of travel companies as the country is now establishing itself as a true holiday hotspot.

Source: http://panload.com