---

Why are the ski resorts so popular?

Recent trends

Last year Bulgarian ski property prices rose by about 35 per cent, and in the lead-up to EU accession in 2007 annual rises of 25 per cent are predicted. (The Times. 20th May, 2005)

Bulgaria’s winter resorts registered the highest growth of all ski destinations in the world during the 2004-2005 season. (Standard News. 21st July, 2005)

At present the most popular types of property for investment are 1- and 2-bedroom properties, purchased off-plan in strategic winter locations. This trend will probably continue leading up to Bulgaria’s entry into the European Union in 2007.

So why is there so much interest in Bulgarian ski property?

Bulgaria is blessed with a number of fantastic winter sport resorts, offering everything from skiing to snowboarding to ice skating. And during the summer months, tourists can enjoy hiking, trekking and cycling in the mountains.

New golf courses are springing up everywhere in Bulgaria.

Then there’s the Super Borovets project funded by the EU and private foreign investors and scheduled to run from 2005 to 2009, which will regenerate the whole Samokov region. The project is estimated to cost around EUR 300-400 million. This new resort will be completely independent from the existing resort, Borovets.

The whole region around Samokov is expected to be transformed into a year-round resort with golf courses, ski paths, cable cars, football fields, tennis-courts, hotels, and numerous other facilities. New pathways for walking, horse riding and mountain biking will be created for eco and rural tourism.

To coordinate this massive project, a new cultural and tourism program Samokov-Borovets-Beli Iskar is to be developed. The project is expected to create over 10,000 employment opportunities in Bulgaria’s tourism sector.

And of course all these people will require accommodation.

According to Bulgaria’s Economics Minister, over the last five months of 2005 the number of tourists visiting the ski resorts has increased by 3.5%. The upward trend is mainly due to arrivals from the European Union.

The greatest share is that of Greek tourists, followed by Macedonians and Germans. According to Bulgarian statistics, Denmark holds the record for swelling visitor percentages: since the start of the year the number of Danes vacationing in Bulgaria has increased by 85%. A significant leap in the number of tourists to Bulgaria was also made by Cyprus (53%), Poland (31%), Switzerland (30%), Great Britain (29%), and Greece (29%).

These statistics, and the millions in foreign currency pouring into the ski resorts, clearly indicates the confidence that investors have in Bulgaria’s future tourism industry.

If you decide to invest in this part of the country, the good news is that Bulgarian ski property has a nine-month rental season compared to properties on the coast, which have only a five-month rental season. Those people buying only for rental income, therefore, would find Bulgarian ski properties far more lucrative.

Generally, summer rental rates on the coast equate to winter rates in the ski resorts - both seasons being of about five months duration. But in the ski resorts, additional rent is achievable during the summer periods, though at a lower rate, from tourists who enjoy the mountains. Obviously, distance from the ski lifts, the standard of finish of your property and the amenities on offer will determine the type of tourists you attract and the level of rent achievable.

The safest option is to buy one or two bedroom off-plan developments near to the ski slopes or one of the proposed new golf courses. Rental income depends on tourism, and high capital appreciation is more likely. Currently the rental yields achievable on property situated in the ski resorts is around 7-8%

In a few years, Bulgaria is likely to be the number one ski destination in Europe, both for Western and Eastern Europeans.

By a big margin, the three most popular Bulgarian ski resorts are Bansko, Borovets, and Pamporovo, which are situated in the beautiful mountain ranges of Pirin Rila and Rhodophi.