Then… Just over 3 years ago, Bansko, Bulgaria was a relatively unknown provincial Bulgarian town of some historical significance, enjoying relative anonymity from the Euro tourists.
Popular with Bulgarians and their close neighbours, the Greeks, as a peaceful holiday destination with a long ski season nestled in the UNESCO protected Pirin National Park.
The perfect secret Eastern European getaway.
Unfortunately, nothing of value remains hidden forever and once word got out of the huge investment and holiday potential, Bansko’s fate was sealed.
Developers began buying parcels of agricultural land from local farmers and land owners and small developments began sprouting up in and around the town.
A ski lift was installed and by 2003 big bucks were being invested in the town’s infrastructure.
Overseen by the local municipality, this investment was part of the blueprint for the future of Bansko as a world class ski resort.
The development dust is still far from settling in Bansko and it is still perceived as an ‘emerging’ resort offering cheap property for investors and owner occupiers alike, but are the opportunities to make money by investing in property in Bansko over or has it become overcrowded and time to look elsewhere? We decided to ask those who know; the agents on the ground, people who work there, the developers beavering away on new developments and those who have already invested in the town.
The Hotel Kempinski hotels are found in Europe, South America, Asia, and Africa.
The Kempinski in Bansko isa luxury 5* hotel and it is worth considering the due diligence they would have applied to their decision to build in Bansko.
It is a huge vote of confidence in the resort.
Maria Yaneva heads up PR at theKempinski Hotel in Bansko and said “At the Kempinski we saw a demand for a 5 star hotel in this new ski resort.
3 years ago, the town was much quieter in terms of tourism, now it’s becoming a true ‘All season’ resort with plenty of summer activities to compliment the world class ski facilities and we predict this growth to continue for years to come” The Agent Exclusive Properties International were one of the first agents involved in Bansko and helped early developers to address the growing demand for quality product.
Simon Stokes has spent lots of time in Bansko and helped lots of people acquire their ski apartments.
“In the early days we were involved with pleasant but simple developments that cost less than €800sqm.
Today we see a huge increase in buyer awareness and sophistication that has, in turn, led to an upsurge of high end developments and, inevitably, a hike in prices.
” “Initially, developments consisted of straight forward accommodation.
Perhaps a car parking space and a locker might be included.
Now people want indoor swimming pools, health spas and a mountain view.
We sell developments now from €1400 to 1700sqm which reflects the quality of the latest developments and the natural increase in value of property in Bansko.
Client expectations are far higher now and this has forced a level of accountability and sophistication amongst developers that wasn’t there in the early stages.
” -Are investors making money? Definitely.
Most buyers will see a 10% paper increase in their property value during the sales phase of a development; parallel that to the growth that we’re seeing in the market and I think the annual figures are upwards of 20%.
In fact Bulgaria’s National Statistical Institute reported a 36% increase in the prices of its cities’ property during 2005 – I didn’t see quite that level of growth on the ground, but it was certainly upwards of 20%” “An important consideration from our point of view is the fact that Bansko is a genuinely lovely part of the world all year round and is valued by our clients for holidays as much as for financial gain.
” “The Mayor of Bankso has recently announced that they are starting to turn away requests to construct residential dwellings so that they can focus more on infrastructure – This is exactly the sort of step we have been hoping for as it will help to protect early investments and encourage new buyers by showing a considered approach to growing the resort.
” The Investment Fund Mike Petch is the director of IPP Ltd and chairman of a large investment consortium.
Mike has spent a lot of time in Bansko and has invested in hundreds of properties there.
I asked Mike why he liked Bansko and where he thought the resort was heading: “Over the last 3 years Bansko has really matured.
In the early days all the promises of investment in infrastructure had to be taken with a pinch of salt.
Today we can see those promises being fulfilled and Bansko fast becoming a thriving, fun and modern holiday destination.
” “We are really happy to see investors making lifestyle purchases in Bansko, not just chasing a quick buck but recognising that Bansko is a fantastic ski resort with fantastic ski runs and facilities – exactly what skiers want.
They are enjoying the skiing and renting when not occupying.
With a 5 month ski season, a terrific summer climate and so much to do in and around the mountains it really is a 12 month resort.
The appearance of large companies like the Kempinski chain and other 5* hotels in Bansko are testament to that.
” “What advice would I give potential investors? Investors are after two things; capital growth and yield.
If you want to look at 12 month rental returns it is very important to buy in the right development.
You need to focus on three things: Good build quality, good views and good amenities.
Put a swimming pool at the top of the list because when there’s no snow on the ground, people will want to swim.
Also consider a gym, a café or restaurant, health spa facilities and so on.
Have a look at Crystal Apartments for a good example of this.
” “Do your research and find a big developer with a reputation for a high quality build.
This is vital for the longevity of your investment because in 5 years time I’m positive that Bansko will a buzzing holiday destination, a real lifestyle venue and that is what will drive the market.
” “Have potential investors missed the boat? Not at all, prices are going up every month and experts across the board are predicting 30% increases.
We are very confident that our investments in Bansko will provide great returns and there is still plenty of money to be made there.
” The Developer The Ferry Group are a Spanish building and development company with a huge reputation for high quality developments around the world.
If Ferry Group decide to take a slice of the action in Bansko then you know that it's time to sit up and take notice of an emerging location.
Ferry have 35 years of experience in the property development industry and are an honest barometer in terms of location potential.
I asked Managing Director, Manuel Ferry Sanchez, why they decided to invest in Bansko: “We made a strategic decision to invest in Bansko.
We wanted to build a residential complex in a ski resort and felt that Bansko was an important and progressive location for our Florymont development.
” Florymont is a 162 apartment complex, lavished with all the care and attention usually reserved for a 5 star hotel, with 2 restaurants, a health spa, a shopping mall, parking and security just part of the package.
I asked Mr Ferry Sanchez why they were building such a grand project: “After considerable research we concluded that the consumer demands a high quality build with luxury facilities.
We wouldn’t be interested in building anything else.
Bansko is a first class resort and deserves first class accommodation for investors and holiday makers.
” I asked Mr Ferry Sanchez what he thought the future might hold for Bansko as a resort and as and emerging investment market: “As a ski destination, Bansko offers everything and off-season the stunning natural environment ensures great year round rental potential.
There are lots of great opportunities still to be had in Bansko and European buyers are showing great interest.
” “There is still room for improvement amongst developers in terms of the infrastructure, services and quality of new developments and it would be good to see more transparent relationships between parties on these matters but overall I see Bansko as having the potential to be one of the best international ski resorts anywhere in the world.
One could look to the Sierra Nevada resort in Spain for a comparable in terms of potential.
” The Buyer David De Pledge heads up a small consortium of investors with an interest in Bulgaria.
Of the buying process he said “It is very important to find yourself a good agent.
Buying in emerging markets like Bulgaria can be exciting and profitable but is also a risk to an extent because you often don’t know who you are dealing with and have to rely on chains of communication between your agent and foreign builders.
“ “My experience of buying on the Black Sea (Coast of Bulgaria) was quite difficult due to the poor lines of communication employed by the agent we used.
However, buying in Bansko was far easier as Simon Stokes of EPI is such an experienced agent in the resort.
Simon understood the kind of difficulties that can arise when buying off-plan in Bulgaria, such as delays in building, contractual issues and so on.
Good management of the buying process is vital but also make sure you do your homework on the agent you use to ensure they are legitimate, honest and experienced.
These things are just as important in Bansko now as they were 2 years ago, if not more so.
It’s important to feel confident when you are posting deposit cheques to people.
” “Why did we buy in Bansko? Originally we wanted to buy two properties on the coast and two in Bansko.
In the end we went for three in Bansko and one on the coast as Bansko is a wonderful resort.
I’ve been there lots of times and as a non-skier, I am well placed to comment on Bansko as an ‘All-season’ resort.
We love the fact that the resort is built around a beautiful historic town and surrounded by a stunning mountainscape.
There’s so much to see and do here.
” “As an investment consortium we are very happy with our purchases in Bansko and have considered it a five year plan based on the rapid and considered expansion of Bansko’s infrastructure.
You can actually see the money being well spent on the facilities and it is quite obvious when visiting the resort that it is improving.
” Now… Early this year the Daily mail awarded Bansko Europe’s Most Improved Ski Resort 2006.
A glowing testimony to all the hard work and money that has been driven into the town’s infrastructure and facilities over the past few years.
Praised by Olympic skiers and the general skiing public alike, Bansko has retained and improved upon its reputation as one of Europe’s top ski spots and yes, you can still make a lot of money buying property there..
To find out more about Florymont or Crystal Apartments visit [http://www.
exclusive-international.
com] or call Simon Stokes on 0800 916 8750
Popular with Bulgarians and their close neighbours, the Greeks, as a peaceful holiday destination with a long ski season nestled in the UNESCO protected Pirin National Park.
The perfect secret Eastern European getaway.
Unfortunately, nothing of value remains hidden forever and once word got out of the huge investment and holiday potential, Bansko’s fate was sealed.
Developers began buying parcels of agricultural land from local farmers and land owners and small developments began sprouting up in and around the town.
A ski lift was installed and by 2003 big bucks were being invested in the town’s infrastructure.
Overseen by the local municipality, this investment was part of the blueprint for the future of Bansko as a world class ski resort.
The development dust is still far from settling in Bansko and it is still perceived as an ‘emerging’ resort offering cheap property for investors and owner occupiers alike, but are the opportunities to make money by investing in property in Bansko over or has it become overcrowded and time to look elsewhere? We decided to ask those who know; the agents on the ground, people who work there, the developers beavering away on new developments and those who have already invested in the town.
The Hotel Kempinski hotels are found in Europe, South America, Asia, and Africa.
The Kempinski in Bansko isa luxury 5* hotel and it is worth considering the due diligence they would have applied to their decision to build in Bansko.
It is a huge vote of confidence in the resort.
Maria Yaneva heads up PR at theKempinski Hotel in Bansko and said “At the Kempinski we saw a demand for a 5 star hotel in this new ski resort.
3 years ago, the town was much quieter in terms of tourism, now it’s becoming a true ‘All season’ resort with plenty of summer activities to compliment the world class ski facilities and we predict this growth to continue for years to come” The Agent Exclusive Properties International were one of the first agents involved in Bansko and helped early developers to address the growing demand for quality product.
Simon Stokes has spent lots of time in Bansko and helped lots of people acquire their ski apartments.
“In the early days we were involved with pleasant but simple developments that cost less than €800sqm.
Today we see a huge increase in buyer awareness and sophistication that has, in turn, led to an upsurge of high end developments and, inevitably, a hike in prices.
” “Initially, developments consisted of straight forward accommodation.
Perhaps a car parking space and a locker might be included.
Now people want indoor swimming pools, health spas and a mountain view.
We sell developments now from €1400 to 1700sqm which reflects the quality of the latest developments and the natural increase in value of property in Bansko.
Client expectations are far higher now and this has forced a level of accountability and sophistication amongst developers that wasn’t there in the early stages.
” -Are investors making money? Definitely.
Most buyers will see a 10% paper increase in their property value during the sales phase of a development; parallel that to the growth that we’re seeing in the market and I think the annual figures are upwards of 20%.
In fact Bulgaria’s National Statistical Institute reported a 36% increase in the prices of its cities’ property during 2005 – I didn’t see quite that level of growth on the ground, but it was certainly upwards of 20%” “An important consideration from our point of view is the fact that Bansko is a genuinely lovely part of the world all year round and is valued by our clients for holidays as much as for financial gain.
” “The Mayor of Bankso has recently announced that they are starting to turn away requests to construct residential dwellings so that they can focus more on infrastructure – This is exactly the sort of step we have been hoping for as it will help to protect early investments and encourage new buyers by showing a considered approach to growing the resort.
” The Investment Fund Mike Petch is the director of IPP Ltd and chairman of a large investment consortium.
Mike has spent a lot of time in Bansko and has invested in hundreds of properties there.
I asked Mike why he liked Bansko and where he thought the resort was heading: “Over the last 3 years Bansko has really matured.
In the early days all the promises of investment in infrastructure had to be taken with a pinch of salt.
Today we can see those promises being fulfilled and Bansko fast becoming a thriving, fun and modern holiday destination.
” “We are really happy to see investors making lifestyle purchases in Bansko, not just chasing a quick buck but recognising that Bansko is a fantastic ski resort with fantastic ski runs and facilities – exactly what skiers want.
They are enjoying the skiing and renting when not occupying.
With a 5 month ski season, a terrific summer climate and so much to do in and around the mountains it really is a 12 month resort.
The appearance of large companies like the Kempinski chain and other 5* hotels in Bansko are testament to that.
” “What advice would I give potential investors? Investors are after two things; capital growth and yield.
If you want to look at 12 month rental returns it is very important to buy in the right development.
You need to focus on three things: Good build quality, good views and good amenities.
Put a swimming pool at the top of the list because when there’s no snow on the ground, people will want to swim.
Also consider a gym, a café or restaurant, health spa facilities and so on.
Have a look at Crystal Apartments for a good example of this.
” “Do your research and find a big developer with a reputation for a high quality build.
This is vital for the longevity of your investment because in 5 years time I’m positive that Bansko will a buzzing holiday destination, a real lifestyle venue and that is what will drive the market.
” “Have potential investors missed the boat? Not at all, prices are going up every month and experts across the board are predicting 30% increases.
We are very confident that our investments in Bansko will provide great returns and there is still plenty of money to be made there.
” The Developer The Ferry Group are a Spanish building and development company with a huge reputation for high quality developments around the world.
If Ferry Group decide to take a slice of the action in Bansko then you know that it's time to sit up and take notice of an emerging location.
Ferry have 35 years of experience in the property development industry and are an honest barometer in terms of location potential.
I asked Managing Director, Manuel Ferry Sanchez, why they decided to invest in Bansko: “We made a strategic decision to invest in Bansko.
We wanted to build a residential complex in a ski resort and felt that Bansko was an important and progressive location for our Florymont development.
” Florymont is a 162 apartment complex, lavished with all the care and attention usually reserved for a 5 star hotel, with 2 restaurants, a health spa, a shopping mall, parking and security just part of the package.
I asked Mr Ferry Sanchez why they were building such a grand project: “After considerable research we concluded that the consumer demands a high quality build with luxury facilities.
We wouldn’t be interested in building anything else.
Bansko is a first class resort and deserves first class accommodation for investors and holiday makers.
” I asked Mr Ferry Sanchez what he thought the future might hold for Bansko as a resort and as and emerging investment market: “As a ski destination, Bansko offers everything and off-season the stunning natural environment ensures great year round rental potential.
There are lots of great opportunities still to be had in Bansko and European buyers are showing great interest.
” “There is still room for improvement amongst developers in terms of the infrastructure, services and quality of new developments and it would be good to see more transparent relationships between parties on these matters but overall I see Bansko as having the potential to be one of the best international ski resorts anywhere in the world.
One could look to the Sierra Nevada resort in Spain for a comparable in terms of potential.
” The Buyer David De Pledge heads up a small consortium of investors with an interest in Bulgaria.
Of the buying process he said “It is very important to find yourself a good agent.
Buying in emerging markets like Bulgaria can be exciting and profitable but is also a risk to an extent because you often don’t know who you are dealing with and have to rely on chains of communication between your agent and foreign builders.
“ “My experience of buying on the Black Sea (Coast of Bulgaria) was quite difficult due to the poor lines of communication employed by the agent we used.
However, buying in Bansko was far easier as Simon Stokes of EPI is such an experienced agent in the resort.
Simon understood the kind of difficulties that can arise when buying off-plan in Bulgaria, such as delays in building, contractual issues and so on.
Good management of the buying process is vital but also make sure you do your homework on the agent you use to ensure they are legitimate, honest and experienced.
These things are just as important in Bansko now as they were 2 years ago, if not more so.
It’s important to feel confident when you are posting deposit cheques to people.
” “Why did we buy in Bansko? Originally we wanted to buy two properties on the coast and two in Bansko.
In the end we went for three in Bansko and one on the coast as Bansko is a wonderful resort.
I’ve been there lots of times and as a non-skier, I am well placed to comment on Bansko as an ‘All-season’ resort.
We love the fact that the resort is built around a beautiful historic town and surrounded by a stunning mountainscape.
There’s so much to see and do here.
” “As an investment consortium we are very happy with our purchases in Bansko and have considered it a five year plan based on the rapid and considered expansion of Bansko’s infrastructure.
You can actually see the money being well spent on the facilities and it is quite obvious when visiting the resort that it is improving.
” Now… Early this year the Daily mail awarded Bansko Europe’s Most Improved Ski Resort 2006.
A glowing testimony to all the hard work and money that has been driven into the town’s infrastructure and facilities over the past few years.
Praised by Olympic skiers and the general skiing public alike, Bansko has retained and improved upon its reputation as one of Europe’s top ski spots and yes, you can still make a lot of money buying property there..
To find out more about Florymont or Crystal Apartments visit [http://www.
exclusive-international.
com] or call Simon Stokes on 0800 916 8750
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