When it comes to buying off plan property in Bulgaria for investment purposes what should a potential investor be looking for in terms of the location, the developer and the development in order to succeed in profiting from Bulgarian property?
With seemingly so many off plan properties on the market in Bulgaria at the moment this no nonsense guide to getting it right should arm those about to buy off plan with the essential facts that they need to save themselves time, money, hassles and headaches and to successfully invest in Bulgarian real estate for profit and income.
First things first you need to decide whether you want ski or sunshine property…
The majority of properties being offered for sale off plan in Bulgaria are either along the Black Sea coast (sunshine properties) or in ski resorts such as Bansko for example (ski properties).
It has been alleged that the amount of sunshine property development taking place in resorts such as Sunny Beach has destroyed any investment potential for new investors because there is now such a plethora of apartments and villas available that those wishing to rent such properties during the summer have an excess of choice available to them.
While this is true in certain areas along the Black Sea coast it is not fair to say that it is now impossible for an investor to profit from off plan sunshine properties in Bulgaria.
When it comes to sunshine homes an investor should be thinking about short term income generation and long term profits. Because there is rather an abundance of supply in the sunshine property market in Bulgaria at the moment it is very difficult for those wishing to generate short term gains from buying off plan and reselling upon completion – but because the demand for property to let out along Bulgaria’s sunny seaside coast is actually increasing annually this means that there is more scope for generating a rental income.
In terms of reselling and profiting from equity increases, when Bulgaria joins the EU in 2007/08 and the laws relating to freehold ownership of land in Bulgaria are finalised there will likely be an increase in the numbers of those looking for second and holiday homes in Bulgaria and in the medium term these people will supply investors with their resale market.
So – to find a decent off plan property development along the coast in Bulgaria an investor needs to be thinking about location and accessibility, proximity to beaches and amenities as well as onsite facilities and ongoing property management services.
The most popular properties with tourists are well located apartments with good onsite facilities such as pools, bars, shops etc., and villa properties with private pools.
In the long term the properties most likely to be in demand from the resale market are properties close to bars, restaurants, shops and beaches and those that have benefited from good maintenance and communal area servicing.
As is always the case when buying off plan an investor should ask to see completed examples of a developer’s work - in emerging markets this is not always possible as developers are just starting out – but because the Bulgarian property market is now relatively well established and the majority of developers still in business have completed developments under their belts it is not asking too much to view completed examples of their work. An investor should look at the build and finish quality, speak to those who have already bought if possible and pay attention to the quality of maintenance the property and communal areas are receiving.
An investor serious about Bulgaria has to travel to the country to get a feel for the areas he’s interested in and to ensure he’s comfortable with the way business is conducted in the country and also to view the standard of building work, the build density etc. This goes for those interested in ski or sunshine properties.
In terms of the ski property market in Bulgaria this is growing in popularity as significant sums of money are being invested into certain key ski resorts such as Bansko as Bulgaria aligns itself for the 2014 Winter Olympics for which it is a candidate. Developers and planning authorities have learned a number of hard lessons from the surge in property development that has already taken place along the coastline in Bulgaria and as a direct result of this fact those considering ski properties for sale in Bulgaria are benefiting from the fact that build density laws have been tightened up and the levels of investment into infrastructure have been significantly increased.
The best off plan ski properties currently available in Bulgaria come with excellent onsite facilities such as a gym, sauna, spa, restaurant and 24 hour concierge service – these properties are likely to be incredibly easy to let out as the Bulgarian ski holiday market continues to grow apace.
Investors interested in ski property must ensure that the location they’re looking at is one benefiting from government investment – where the government has committee to improve and expand resorts you can pretty much guarantee that the demand for property to let and buy will also increase.
Bansko is currently one of the best places in Bulgaria to invest in off plan ski properties – the demand for rental and resale property is intense, the demand is likely to increase, investment being made into the resort is significant, the resort itself offers visitors and residents a whole host of activities and the resort also has a summer season when visitors flock to the area to hike in the stunning mountains and enjoy the excellent air! This gives investors a far longer annual period to generate an income from their properties.
Exclusive Properties International (EPI), a UK based company who work with those looking for property investments or second homes abroad are always updating their Bulgarian property portfolio. They are unique in that they have succeeded in securing exclusive partnerships with some of the best developers and architects in Bulgaria and in assisting those looking for guaranteed rental income etc., in securing suitable property in Bulgaria.
Anyone considering buying off plan property in Bulgaria would do well to peruse EPI’s latest offerings to get a feel for the current market and to compare other developments with theirs; furthermore it’s worth contacting EPI for direct assistance with finding, financing, buying and/or managing property investments in Bulgaria because of their specific experience in this market.
And finally – a few words of warning and wisdom that I can safely say come with personal experience attached - always get independent legal advice when buying property abroad, use common sense, don’t enter into an agreement abroad that you wouldn’t consider back home and if an offer seems too good to be true then it probably is!
