UK INTEREST IN THE BULGARIAN PROPERTY MARKET

Interviews with Bulgarian Properties’ CEO Mihail Chobanov and Bulgarian Dreams’ Director Robert Jenkins.

Q: What is the typical profile of a UK client interested in buying property in Bulgaria?
BULGARIAN PROPERTIES: There are three main types of client: those looking to purchase a second or permanent home; those looking for a holiday home with the possibility of renting it out, and those purchasing purely for business purposes, either to gain income from letting or as a speculative purchase, either for immediate resale, or resale at a later date. Many people who buy to rent, own up to five properties and many who buy to resell have more than 10 – some have more than 40!
BULGARIAN DREAMS: We are finding that there isn’t a ‘typical’ purchaser of Bulgarian property, our clients range dramatically between larger business-driven investors through to the smaller investor just starting a portfolio and who are interested in using the property in the future. Furthermore, about one third of our client base is Irish.

Q: What types of properties are UK clients most interested in- houses (old/new), commercial premises, hotels, apartments or land?
BULGARIAN PROPERTIES: Bulgarian Properties deals mainly with private clients who are looking to buy properties in rural Bulgaria for between 5000 and 20 000 euro, or an apartment for 20 000 to 45 000 euro near a resort. Beach resorts are the most popular, followed by mountain resorts.
BULGARIAN DREAMS: A large portion of our clients are looking for one and two bedroom apartments that are ideal for holiday letting or residential leasing. In addition, many intend to use the properties for their own enjoyment a few times a year.

Q: Bulgarian property is a hot topic for many foreigners at the moment, but especially with those from the UK. Why do you think that the UK market in specific has shown such a big interest in Bulgarian property? What do you think sparked this phenomenon?
BULGARIAN PROPERTIES: There are two main reasons for this; first we have the climate, nature and the cost of living that is desirable for our clients. And second, The British are a nation that like invading, in this particular case purely invading, or to invest money into an attractive market with great potential.
BULGARIAN DREAMS: The fall of communism was the immediate catalyst for the growth in interest in Bulgaria as both a tourist destination and business centre. However, many investors in UK property have found that the rapid rise of the UK property market has meant that purchasing property in the UK has become less profitable for those looking for rapid returns. Bulgaria is proving an area ripe for investment. Also the growth in popularity of more eastern European locations such as Hungary has meant that the British have become more adventurous and are looking east for new markets and destinations.

Q:What are the current trends in the Bulgarian property market? Has there been an increase or decrease in sales to UK clients over the past year?
BULGARIAN PROPERTIES: Interest is constantly increasing, now not at that rapid a pace, the peak is still to come.
BULGARIAN DREAMS: There has been a good increase in sales for Bulgarian property over the past year, so much so that we now operate out of five regional offices in Bulgaria and have monthly sales of more than five million euro. In addition, as the market matures, clients are looking at more and more varied areas of Bulgaria for purchases.

Q: Which areas of Bulgaria are most potential UK buyers interested in? Has this changed over the past few years?
BULGARIAN PROPERTIES: I would say there are two main fields of interest: the first is the typical ‘escape from stress’ rural location; the second, in and around the resorts – in their outskirts, or very close.
BULGARIAN DREAMS: It is very much horses for courses. Each area of Bulgaria has appealed to the varying trend in buyer. For example those who want the sunny lifestyle have predominantly gone for the surrounding areas of Sunny Beach, whereas many buyers have gone for Bansko and Pomporovo for the skiing aspects. What has been consistent is that UK investors have purchased a wide range of properties and have not been confined to one area, as they all provide excellent investment potential.

Q: Property in Bulgaria is very much in the limelight in the UK media at the moment. Not all the coverage is good, with tales of complicated legal battles and long-lost relatives staking claims on properties hindering the buying process. How realistic are these portrayals of purchasing property here? What are some of your strategies for dealing with potential pitfalls?
BULGARIAN PROPERTIES: The main problem comes from this: that at the moment it is profitable to have an estate agency. If you have a good budget and good marketing strategy it can become a profitable business – that is how the unprofessional companies came into the business. The developers became agents, the agents became developers, and every single person in Bulgaria who has any kind of contact with foreigners is trying to sell them something. Three years ago there were only a few agents selling (mainly) to the British. One year ago there were only a few property offices in Sunny Beach. This summer the shops are turning into “Property Shops”, next year there might be only estate agents in the resorts!
BULGARIAN DREAMS: Many of the stories that are read in the press regarding Bulgaria are over exaggerated. Compared with countries like Croatia, Bulgaria has a very strict land registry and the chances of past residents claiming land or properties are incredibly rare. In fact there are little or no problems particularly when purchasing new properties without an ownership history. The country is beautiful, with huge expanses of wilderness and a growing economy that is providing a solid basis for property investment. With regard to each property we sell, we encourage every purchaser to visit the country and we also provide him or her with a huge checklist of possible pitfalls before they complete, so that their new home is completely to their satisfaction.

Q: What do you envisage as the future of UK investment in the Bulgarian property market?
BULGARIAN PROPERTIES: There are still many undiscovered and hidden beauties in Bulgaria; there are still virgin sandy beaches and ski slopes. We still have our four well-separated seasons, we still have the Bulgarian hospitality. I am sure that there is lot more great potential in some places to make a great profit from your investment.
BULGARIAN DREAMS: It’s all going ultra exclusive as three golf course developments, designed by Ian Woosnam and Gary Player are about to come on line and we have also just launched a development called Bay View Villas which is situated in the hills above Sunny Beach and provides a gated community of villas set in private grounds which provide either a large four or five bedroom property or two or three separate apartments per villa. These developments are a step above anything that has been seen on the new built market and they will continue to put the Bulgarian market on the map.

Full details about the ‘Super Borovets’ project, price madness in Bansko, golf developments in Bulgaria, and new apartments in Bansko and Borovets can be seen at the Bulgaria Properties Ltd web site www.BulgariaProperties.net. You can e-mail questions to advice@BulgariaProperties.net, or, if you have no Internet connection, call the company (in UK) at 0871 226 2296 to order a free 30-page hand-out, or just for a chat, if you prefer. They always have time for you.

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