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