The boom in the building of holiday properties in Bansko – Bulgaria’s largest winter resort – is due to foreign developers’ interest, mainly that of British and Irish clients, who tend to buy “green” holiday residences.
The buyers’ motives are different.
Some are seeking an easy profit, convinced that in 2 – 3 years’ time they will attain a high rate of return on their capital. Others are planning to utilize their investment in a different way. They buy properties to rent them, motivated by the fact that Bansko has become a very popular winter destination. Real estate brokers prognosticate that a small new apartment of a purchase price of EUR 40 – 50 000 will take less than 8 years to pay back from rents. That is the reason why all property developing companies in Bansko and other local winter resorts include in their tenders an option for property management.
Because of the intense investors’ interest, Bansko local government has introduced building restrictions, concerning the size of new hotels and holiday residential complexes. The decision was urged by the fact that for the last four years the municipality has issued building permits for an area of over 500 000 sq. m.
In 2005 only, about 15 new apartment complexes were open in Bansko. Statistics show that the number of hotels in the resort has increased from 40 to 100, that of the private houses to rent – from 60 to 100, and that of holiday homes – from 5 to 6.
Experts say that the restrictions will cause an increase of property prices. The preservation of Bansko’s unique character is highly recommendable.
Capital News
25 March 2006
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