21.3.2007

Bulgaria: On course for a building bonanza

Luxury golf developments are leading the way in Bulgaria's latest property boom, says Ginetta Vedrickas

The signs are that Bulgaria, once consigned to the cheap and cheerful bracket, is now heading up-market. Several new developments are now marketing themselves as "five star" with many based around golf courses.
The Black Sea coast is still attracting the bulk of buyers. Savills recently launched a new golf and country club development called BlackSeaRama, where apartments and villas are set within a gated community around a Gary Player-designed 18-hole course near Balchik. Apartments range in size from 95 to 170sq m, and villas measure up to 230sq m. The development is set within attractive gardens with on-site amenities, including communal pools and a five-star hotel. Buyers will have access to other sports such as tennis and the development lies near the Tuzlata Spa where visitors can enjoy its thermal baths and mud baths.

BlackSeaRama prices start from €124,000 (£88,570) for one-bedroom apartments, rising to €246,000 (£175,710) for duplexes. Lemore Kayvan from Savills admits that, for a country long considered an emerging market, this is relatively expensive. "It is a lot for Bulgaria but, for something of this calibre, it's not bad especially when compared with other golfing destinations." A one- bedroom apartment works out at €1,300 (£928) per sq m and Kayvan points out that buyers are getting something special in a country where five-star luxury is a relatively new concept.

Response has been good despite the development being targeted at a "niche market". Luxury may be the main attraction but as there are few other five-star amenities in the area, does Kayvan think that buyers may be disappointed by a lack of amenities off site? "In terms of infrastructure you actually don't need much to install a golfing development," says Kayvan. "You just need space and beautiful countryside, which Bulgaria certainly has."

Many investors bought in Bulgaria several years ago and have seen their investments soar in value. Today's investors might question whether Bulgaria still has growth left in the market but Avatar International's Amar Sodhi offers an interesting perspective: "In the past investors may have paid too much for developments that were of poor quality. In the early days, most developments were sold completely off plan leaving the developer with no incentive to use high-quality finishings. Today the market has cooled slightly and developers must compete for business."

The market may not have the frenzy of the early years but Bulgarian tourism is still booming and Sodhi says that further growth is inevitable: "As long as the hotels are full, then there's room for investment potential."

Avatar International are currently selling Razlog Golf and Ski development which is being targeted at both winter and summer vacationers. Sitting at the entrance of an Ian Woosnam-designed 18-hole golf course and country club, the development features 325 studio, one-, two- and three-bedroom apartments and a wide range of facilities including restaurants, bars, shops, gym and a swimming pool. Residents have access to Bansko skiing thanks to a complementary shuttle service to the town centre and gondola station and the developer believes that its location will produce high rental income. Studios start from €41,190 (£29,420) and go up to €284,625 (£203,300) for a penthouse.
Jolyon Cawley from Abergavenny, Wales, has bought three apartments in Bansko through Avatar International. "I was very impressed with the build quality," he says. "I've read a lot about Bulgaria and am confident that it is an excellent place to invest in. I was particularly taken with Razlog as it is being built by a UK developer and it has an electronic property management system so I can view my property and control certain elements of its management online."

One of Cawley's purchases is a three- bedroom apartment at Razlog Golf and Ski, which he intends using as a holiday home and which he also hopes to let: "My apartment overlooks the golf course which is currently being built opposite the development. I'm a keen golfer so I'm looking forward to bringing friends out for golfing breaks in the summer. My wife and I can also come here to ski in the winter, it's great to have somewhere with year-round appeal."
Coast and ski resorts may be attracting buyers with bigger budgets but interest is growing in the capital, Sofia, which, compared with other Eastern European capital cities, has so far received little interest. Avatar International are selling the Vitosha Residence, a new development at the base of the Vitosha Mountains overlooking central Sofia where apartments start from (€32,230) £23,000. Bulgaria Revealed are selling The Dahlia Complex four kilometres from Sofia, with one- and two-bedroom apartments from €31,145 (£22,247) and Mount View where one- and two-bedroom apartments and penthouses located south east of Sofia, near the Sofia Business Park and Vitosha Mountains start from €114,315 (£81,675).

The capital may be growing in popularity but Quasar Ali, Bulgaria Revealed's MD, says that it is the golfing market which will boost Bulgaria's profile: "Over the next few years Bulgaria will be stealing visitors from the British haunts of Spain and Portugal, as the country goes ever up-market. Bulgaria is so green and lush, not like Spain which is arid and dry." Bulgaria Revealed is marketing Villa Christina at the Nicklaus Design Golf Course in Dolna Banya where three-bedroom villas are for sale from €131,600 (£94,000).

Bulgarian Dreams have just launched Azure Del Mar, a luxury scheme on the coast near Balchik. The development has drawn influences from the extravagant Arabian resort of Madinat Jumeirah in Dubai and will feature Venetian-style waterways, glass lifts and an infinity pool. Near the development are three 18-hole golf courses, two designed by Gary Player and one by Ian Woosnam. Prices start from €49,500 (£35,357) for a waterside studio, €90,000 (£64,285) for a one-bedroom apartment and €135,000 (£96,428) for a two-bedroom apartment. Large penthouses and villas will be priced from €232,500 (£166,071). Director Robert Jenkin describes the development as "Bulgaria's first world-class development and the only one of its kind in Europe" and adds: "This scheme will be impressive to holidaymakers, second home-buyers and investors alike. While the scheme will be competitively priced due to its Eastern European location, it will be of a calibre associated with developments in places such as the south of France, Italy and Spain."

Source: money.independent.co.uk