26.04.2007

Bulgaria's regional property markets

According to real estate brokerage Address the two trends defining the development of Bulgaria's regional housing markets in the first quarter are the ample supply of newly-built homes and the limited availability of pre-fab apartments.

Another boom for the regional real estate markets are the transactions with rural homes.
Despite the significant price increase of pre-fab apartments in the smaller towns, the owners are still holding out in anticipation of further price gains. These, however, are highly unlikely because these properties are too expensive as it is, said Address executive director Katia Tsenova.

Most of the newly-built homes transacted on the regional markets are located in the ski resorts, mainly Bansko and Razlog. They usually involve second-home buyers.

The Razlog property market is still playing catch-up to Bansko in terms of pricing. Only residential properties in the area of the Razlog golf resort command prices between 1,300 and 2,000 euro/ sq m.
Buyers are also taking notice of the upbeat outlook for the spa tourism market in Sandanski, South-western Bulgaria. Rising demand has added 8-10% to asking price of homes in the central parts of the city which now sell at 850-1,300 euro/sq m.
The real estate market in Blagoevgrad, located on a key road link with Greece, was also busy in the last quarter.

Situation by regions

Sozopol municipality is transforming two of the five Black Sea isles into tourist attractions. After the preparation of an urban plan of the territories will start a process of selection of an investor.  There are ideas about both islands  Svetite Kirik and Yulita to become a tourist attraction. They are one of the best spots on the Black Sea coast and is under way to attract huge investor interest.

The new building season in Bansko starts, the construction was banned on 15 Dec. last year. Starts the municipal building programme as well. The investments for 2007 amount to BGN 22,339,080 including projects in the centre and the villages in the region. The capital expenditure of the town of Bansko amounts to BGN 20,008,480, for the town of Dobrinishte - BGN 337,200. Over BNG 1.7 will be invested in public works on the street network.

  Kavarna

Kavarna will turn into a modern tourist centre. The administration is preparing the local infrastructure for the big investors’ interest. Among the major projects is Kaliakria holiday complex. The construction will take three stages, there will be a total of 350 apartments.

Another project is Thracian Cliffs, the work started in July 2006. It is situated near Bozhurets village. The complex is unique, with an entirely southern exposure on 4 km of beach strip. The first phase is to be completed by June 2008. It will include a five-star hotel with a spa-centre, 316 apartments, 90 cottages and a golf course with 18 holes meeting the international standards for golf tournaments. The complex will offer a spa and rehabilitation centre, the shopping part with shops, restaurants and night clubs, a golf clubs, a diversity of luxurious apartments and cottages in traditional for the region architectural style.