In early 2007, Bulgaria joined the European Union, and although this event was marked by another round of rising real estate prices, housing here still remains one of the most affordable in Europe. The most popular seaside resorts in Bulgaria are, of course, Sunny Beach and Golden Sands. The average air temperature in July and August is +27 °C, and the water temperature is +24 °C, which perfectly illustrates one of the most attractive features of Bulgaria – a warm, not too hot climate.
North versus South
Historically, since the time of socialism, the northern coast has been more popular with Russian tourists. The southern coast has begun to be developed faster and more actively by tourists from Western Europe, says Yulia Titova, head of the foreign real estate department at BEST-Real Estate Corporation. Of the famous resorts, the following should be highlighted: in the south – Sunny Beach, in the north – Golden Sands, Albena, and Saints Constantine and Elena. The rest of the resorts can be attributed to the developing ones, although many of them have long established themselves among both Bulgarians and European tourists. In the south, it is worth mentioning Tsarevo, Primorsko, Lozenets, Sozopol, Obzor, Pomorie, Ravda, Sveti Vlas, Elenite. The last three of these resorts are located so close to Sunny Beach that they have almost merged with it and form one resort area. In the north, it is worth highlighting the developing resorts of Balchik, Kavarna, Kranevo, Byala.
Compared to the southern coasts, the northern shores of Bulgaria have a more pronounced relief. Due to this, panoramic views of the coast open from the windows of buildings located even at a great distance from the sea, Yulia Titova notes. "In the south, whether it is Sunny Beach or Sozopol, the terrain is more level. Therefore, even in houses located just 200 m from the sea, it is difficult to find good panoramic views. Although there are some exceptions," she clarifies, "for example, the hilly terrain in Sveti Vlas."
"The areas north of Varna are attractive from the point of view of buying not so much apartments in apartment complexes as beautiful, detached houses. – Vladislav Kharitonov from Bulgarian Property Advisors believes. – I will note the prestigious areas of Galata, Asparukhovo, Vinitsa and Trakata located on the slopes near Varna, as well as a large country area under Balchik with magnificent panoramic views. In general, the northern coast is a place of long, straight beaches with shallow, gently receding bottoms, for example in Albena, Kranevo, Byala, Obzor. But Shkorpilovci and Durankulak, in our opinion, will still declare themselves! The coast of the far north is steep and with high rocky cliffs, from the top of which a stunning monumental panorama opens."
The southern coast is very picturesque, it is characterized by small cozy coves and beaches enclosed by rocky headlands. The only exception is Sunny Beach, Dunes and the beach of the former International Youth Center near Primorsko. The southern coast differs from the northern one primarily in its climate, notes Igor Kukui, sales manager of the Bulgarian construction company Fort Noks. The air on Sunny Beach is 1-2 °C warmer compared to the coast of Varna. This difference is practically not felt, but it affects the water temperature and significantly prolongs the sea bathing season.
The northern part of Sunny Beach has a unique climate – forested mountains descend into the sea, which creates a unique combination of sea and mountain air flows. In Soviet times, Sveti Vlas housed sanatoriums for the treatment and prevention of lung diseases and the nervous system.
"Based on the results of research conducted by our company, we came to the conclusion that in 2008 the southern coast, especially the vicinity of Tsarevo, will be the most attractive for investors," says Andrey Vassev, marketing specialist at Logservices Land. "Firstly, according to official data, it is here on the Bulgarian coast that the cleanest water is. In addition, a yacht port and a port for cruise ships will be built in Tsarevo, and the Strandzha Mountains and a national park are nearby. This gives us confidence that the resort will not be too densely built up, and nature will be preserved."
Step forward
The infrastructure in Bulgaria's seaside resorts is well developed, Yulia Titova notes. Five years ago, all the necessary infrastructure facilities existed in the old resorts. By now, there has been a tremendous step forward. The Bulgarian authorities are not going to stop there, actively developing tourism and investing money in the infrastructure of the coast: New golf resorts, yacht clubs, and water parks are being built.
The resorts of Albena, Rusalka and Golden Sands offer a wide variety of water activities, a lot of evening entertainment programs, says Nevena Stoynova. Recently, due to the temperate climate, it was decided to develop the area north of Varna as a golf resort. And the expansion of the small airport in Balchik will allow charter flights from other countries to be accepted and will provide the resorts of the northern coast with even greater popularity.
Sunny Beach is 25 km from Burgas Airport. This resort offers various options: a quiet relaxing holiday alone with nature, and a variety of water activities, boat trips, horseback riding, go-karting, scuba diving. There are also tennis and squash clubs, four water parks, a lot of restaurants, bars, discos.
The limit of possibilities?
"The appearance of the old resorts is fully formed, for example, there are practically no vacant plots left on the Golden Sands," Yulia Titova notes. There is already a trend towards the reconstruction of hotels with conversion to luxury apartment complexes. An example of such a project is Zlatna Kotva, located on the first line in the center of Golden Sands. Sunny Beach is almost built up, in the next two years the formation of the appearance of the resorts of Sveti Vlas, Elenite, Ravda will be completed. In other resorts, the central part is most densely built up, which allows cities to grow in breadth.
The resort of Sunny Beach is the most developed, and in its northern part – Elenite, while in Sveti Vlas there are still opportunities to create new facilities, Igor Kukui believes. In the north, the situation is exactly the opposite – there are many really beautiful places that could become high-class year-round resorts. According to Nevena Stoynova, the northernmost part of the coast, starting from Balchik, has the greatest development potential.
Price spikes
Prices for resort apartments depend on the location, sea view and total area of the property. "The bulk of properties on both coasts are in the price segment from 1200 to 1900 euros per 1 sq. m," says Yulia Titova. Depending on the location, prestige of the object, views from the windows, the level of the object and its infrastructure, prices in new buildings on the coast mainly range from 950 to 3000 euros per 1 sq. m
. Price dynamics is characterized by a fairly rapid growth. Five years ago, new buildings were offered at a price of 300 to 500 euros per 1 sq. m. Two years ago, it was possible to purchase apartments on the first line from the sea at a price of 1000 to 1500 euros per 1 sq. m. Today's realities are about 2500-3000 euros per 1 sq. m. m on the best sites.
"The demand for real estate is not falling, the cost of construction is growing, therefore, prices for objects will increase," notes Igor Kukui. The expected price increase adjusted for inflation may amount to 12-15% per year. If we talk about price growth without inflation, then in the next few years we should expect an increase of at least 20% per annum." Nevena Stoynova agrees with her colleague regarding the percentage of price growth and notes that the market is growing at a steady pace, but the price dynamics is gradually slowing down, since Bulgaria has become a member of the EU for a year.
"Experience shows that the increase in real estate prices in the most high–quality facilities is 30-40% per year," adds Yulia Titova. "It is possible that such high growth rates will not persist, but we can expect a price increase of 20-30% when investing in good projects at the initial stages of construction."
A matter of policy
Investing in real estate cannot be considered solely from a geographical point of view, warns Yulia Titova. Highly liquid attractive properties can be found on both coasts. The question of investment attractiveness depends on the specific object and the policy of the developer. The general trend is to improve the quality of construction and increase the demand for high–quality facilities.
British citizens who bought cheap properties using their real estate loans did not receive the rental income they expected. As a result, the Bulgarian market is soon expecting the arrival of a large number of economy class objects for resale. Their liquidity is under great question, and therefore,The prospects for new facilities in this market segment cannot be predicted either. The future remains for good, high-quality facilities with developed infrastructure in close proximity to the sea.
