Buy & Sell Bulgaria Insight Newsletter

By Kerin Hope and Theodor Troev
Financial Times

British home buyers have disappeared from Bansko, a leading Bulgarian ski resort and until recently a hot spot for people seeking moderately priced holiday properties.

Since the global credit crunch took hold, purchases by UK investors of Bulgarian properties priced between EUR 45,000 and EUR 90,000 (GBP33,500 - GBP 67,000) have fallen sharply, according to Sofia-based estate agents. Such a steep decline suggests Bulgaria’s holiday home boom, which has focused on Bansko and Sunny Beach, the leading resort on the Black Sea coast, may be over. Property developers have been offering discounts of 8-12 per cent in buildings nearing completion in Bansko. Meanwhile, prices for new apartments in Sunny Beach have fallen by 7-8 per cent.

Rapid development at Bansko and Sunny Beach resulted in an over-supply of lower-priced apartments, putting a severe strain on local infrastructure. An estimated 85 per cent of UK investors bought properties off-plan without having visited Bulgaria.

Rental incomes on the Black Sea coast have been lower than expected, according to investors. “Estate agents talked about a six-month season and yearly returns of 6-8 per cent. The reality is more like three months and under 3 per cent,” said David, a Dubai-based IT worker who bought at Sunny Beach two years ago. He declined to give his full name.