Sapareva Banya hosts the European Mountain Running Championships in 2010

as reported from 120th European Athletics Council Meeting - Berlin (GER) .

Comment:  Thisis a frist for Sapareva Banya and is another step to put the toen on the workld tourism map.

Landowners and environmentalists criticise the environment minister
11 Aug 2008 - Elitsa Grancharova - Novinite

Bulgaria’s Environment Minister Djevdet Chakurov stopped the realisation of the detailed master plan of Separeva Banya municipality, within whose jurisdiction falls Rila national park, thus provoking perplexity in the municipality, and sharp comments from Bulgaria's environmental movement.

The Ministry of Environment and Water Affairs said in an August 9 media statement that in the detailed master plan approved by Separeva Banya municipality, “illegally and in violation of the regulations of the Protected Areas Act, as well as of the order for pronouncing the national park [Rila], there was included the regulated territory of Panichishte village”. Construction of the new winter resort Panichishte-Ezerata-Kaboul has started in the village, which provoked various protests from the local environmental movement.

“The detailed master plan foresees activities that would harm forested areas owned only by the state that are part of the park,” the ministry media statement said. Chakurov thus ordered that the territory that fell into the territory of Rila national park be excluded from the detailed master plan.

Chakurov’s order engendered bewilderment among the municipal management of Separeva Banya, south-western Bulgaria daily Viara reported on August 11 2008. According to the local mayor Sasho Ivanov, the municipality did not have a new plan on which the ministry had had to pronounce a decision, as such decisions were to be taken by the regional directorate of national construction control.

On August 10, the coalition To Sustain the Nature in Bulgaria (SNB) wrote in a media statement that “the Ministry of Environment and Water Affairs fakes concern by stopping the regulation plan of Panichishte village”. However, SNB and the civil group Citizens for Rila said that they welcomed Chakurov’s decision, as the Separeva Banya detailed master plan included 2.4 hectares of Rila national park.

A ministry media statement from August 9 gave the impression that finally Chakurov had stopped the illegal construction of roads and a ski lift near Panichishte, which was not true, Tsveta Hristova from Citizens for Rila said. In fact, the master plan of the planned ski resort Panichishte-Ezerata-Kaboul and the current construction of roads and lifts, also part of this plan, remained unaffected by Chakurov’s decision, SNB’s media statement said.

The third consecutive check by the environmentalists in the area of the Seven Rila Lakes, which took place on August 9 and 10, found that the barrier at the entrance to Rila national park had been removed, together with its concrete foundations. The informational signboard and the sign banning motor vehicles from entering the park had also been removed, the environmentalists said. They warned that they would send a signal to the Doupnitsa regional police office, which had charge of the area.

'Panichishte-Ezerata-Kabul' - new environmentally friendly ski resort
source: expert.bg

‘Rila Sport’ company will invest 140 million leva in the construction of a modern and environmentally friendly ski resort in the area of Panichishte, called ‘Panichishte-Ezerata-Kabul’. According to experts’ calculations the investments in the building of the resort will come up to 900 mln leva.
It is expected for the project to be concluded by the end of 2016.
2000 new labours are expect to be opened after the construction of the modern ski resort.


The resort ‘Panichishte-Ezerata-Kabul’ will have about 100 km of ski runs, ski tracks and free-skiing areas. Of these over 10 km are already existing in the forestation area without being categorized as such yet and over 85 km snow fields, that are not worked on because of the lack of access and lifts.
‘Rila Sport’ is also planning to dispose 3 attractive snowboard parks in the resort, as well as 3 tracks for cross-country, biathlon shooting ground and children zones. No terrain meddling into Rila National Park is needed for the construction of the new facilities.
There will be a limited accommodation base in the new park, which will be no more than 10 000 beds, the lodgings will be situated primary in the village of Panichishte and won’t affect the beautiful nature of Rila.


Besides that ‘Panichishte-Ezerata-Kabul’ will have a positive effect on Bulgaria’s economics. Less than 200 km of ski runs and 50 lifts are existing at the moment. For comparison in Austria, which does not have better natural peculiarities for development of winter tourism, there are about 20 000 km of ski tracks, over 5 700 lifts and more than 800 resorts.
It’s the same with Switzerland, France, Italy and Germany. The construction of a ski resort like ‘Panichishte-Ezrata-Kabul’ will lead to conditions for attraction of a high-category tourists. ‘Rila Sport’ will do all possible to attract also first-class tour-operators and hotel chains in the future resort, which will guarantee the highest quality of the tourist product, befitting to the Natural peculiarities in the region.

“We hope that the construction of the resort ‘Panichishte-Ezerata-Kabul’ will turn Rila into one of the top 10 preferred tourist destinations in Europe and this way we’ll contribute the development of the Bulgarian tourism, the executive manager of ‘Rila Sport’ Slaveyko Staykov said.
The expectations of the leadership of ‘Rila Sport’ company are ‘Panichishte-Ezerata-Kabul’ to become the most ecologically friendly resort in Bulgaria. Due to this reason the International company "Ecosign Mountain Resort Planners Ltd." has worked on the conception of the ski zones for year and a half. "Ecosign Mountain Resort Planners Ltd." Is a world leader in this branch with more than 250 successful projects in over 32 countries and 33-year experience.


Ski resorts designed by them have hosted four of the past Winter Olympic Games. "Ecosign Mountain Resort Planners Ltd." has a great contribution winning the host of the 2014 Olympic Winter Games by the Russian town Sochi.
Except for that, in order to make the project more ecological, ‘Rila Sport’ have put limits for the maximum number of beds, building and floorage in the resort. There will be a central heating on biofluel, central drainage and local Wastewater Treatment Plants. There will be enough underground and over-ground parking lots built and inner-resort transport for the tourists will be provide.


The leadership of ‘Rila Sport’ is in process of establishing of a Grеen Fund for ecological activities, which will invest part of the incomes of ‘Panichishte-Ezerata-Kabul’ in the restoration of the affected by the activity of the resort and the tourists nature.
‘We want to show that we don’t wish to destroy the nature but only to help the local people to use more complete this biggest fortune of theirs’, Slaveyko Staykov said.
Source: Expert.bg

Bulgarian Eco Activists Protest in Brussels against illegal construction on Rila 

8 May 2008, Thursday 

Bulgaria and EU eco-activists staged a demonstration in Brussels on Thursday in support of their petition asking the EC to help stop the illegal resort construction in the Rila Mountain. Photo by "For the Nature" . Bulgarian eco-activists supported by international NGOs staged Thursday a demonstration in Brussels against the illegal resort construction under way in the Bulgarian Rila Mountain.

The environmentalists carried slogans saying "Let's Save Rila". They tabled a petition to the European Commission asking it to help stop the illegal construction activities in the Bulgarian mountain.

The petition signed by 148,000 Bulgarians and citizens of other EU states was submitted to the office of the European Environment Commissioner Stavros Dimas.

It is also supported by Members of the European Parliament from the Greens/EFA group, the Bulgarian environmental coalition "For the Nature" announced.

The petition insists that the Bulgarian state stop the illegal construction at the Panichishte mountain resort on the territory of the Rila National Park and the planned protected zone "Rula-Buffer".

The Bulgarian environmentalists are warning that the current construction of a road, a lift, and three ski tracks were only the beginning of a massive construction project of a ski resort in the "Panichishte-the Lakes-Kabul" area.

A total of 27 ski tracks, 80% of which will be located on in National Park, might be constructed, the eco-activists fear.

According to the Dutch NGO A SEED Europe, the resort project in Rila is in violation of the NATURA 2000 Eco-network, and of nine Bulgarian laws.

The EC has already requested information from the Bulgarian authorities for the case.

Barbara Helferich, the Speaker of the EU Commissioner on Environment, who was present at Thursday's demonstrations in Brussels, announced that a seminar on environmental issues was going to take place in Bulgaria next month.

She said that EC representatives were going to attend the seminar, and familiarize themselves with the Rila case. After that the Commission would decide what steps to take.

According to their announcement, the environmental organizations are seeking support from Brussels because of the lack of any reaction to the issue by the Bulgarian institutions, and their unwillingness to put an end to the drastic violations taking place in the Rila Mountain.

New Aqua Park to be built in Sapareva Bania

Article by: Stroitelstvo Gradat

A new aqua park of the shape of a mountain crystal will be built in town of Sapareva Banya, the main purpose of the complex is creation of an environment with no polluting emissions. The investor is Gasthaus Ltd., the designers are Atanas Tosev, Borislav Vladimirov, Petko Simeonov.

The building footprint is 5,148 sq. m, the gross-floor area is 21,839 sq. m. The location is in Kozni bunar area at the foot of Rila mountain, offering clean nature, hot mineral springs, panoramas to the mountains and the valley of Sapareva bania. The architectural solution is a replica of a mountain crystal meeting a concept of harmony, beauty and sustainability.

The natural elements and the functional characteristics in its diversity are all combined under the glass roof in a variety of inner spaces and visions between them and the outer world elements responding to the calls of "green architecture" and "green building" with zero carbon emissions.

The recreational complex includes five swimming pools as a cascade for adult and children, restaurants, spa and balneological centre, a night club, a casino. Two floors will take a high category hotel.

BGN 140 M to Be Invested in Luxury Ski Resort in Bulgaria's Panichishte

22 April 2008, Tuesday

A five-star ski resort for millions of levs is to be constructed in one of Bulgaria's most beautiful areas - the Rila Mountain.

The Bulgarian company Rila Sport is going to invest BGN 140 M (70M euros approx) in the construction of a five-star ski resort close to the village of Panichishte in the Rila Mountain.

The news was announced Tuesday by Slaveyko Staykov, the Executive Director of Rila Sport, lev.bg reported. Staykov's firm was assigned the realization of the project by the administration of the Sapareva Banya Municipality. The future ski resort is expected to be completed by 2016.

The total investments in the new resort might reach up to BGN 900 M. (Euros 450M) The project envisages the creation of about 100 km of ski tracks, plus snowboard parks and cross country tracks.

Staykov emphasized that the hotels would have no more than 10,000 beds, and that they would not be located on the territory of the Rila Mountain Natural Park.

"We aim to attract upper-class tourists; the resort will be managed by leading firms with appropriate experience", Staykov said.

The investors expect that the new resort would become one of Europe's top ten tourist destinations. About 10 000 workers will be hired for the construction, and once completed, the new complex is expected to employ permanently some 2 000 people.

The institutional procedures for the environmental assessment of the planned resort are currently under way.

The plans for the construction of a ski lift and a resort in the Rila Mountain, and especially close to the Seven Rila Lakes area, and the reports about the potential environmental destruction have triggered violent protests around Bulgaria by leading environmentalist and other NGOs, and by regular citizens.

These have been met with counter-rallies by the local people from the Sapareva Banya Municipality, who hope to profit from the development of their region, mainly because many of them own lands there.

New ski resort includes swapped land

15:00 Fri 18 Apr 2008 - Elitsa Grancharova, Sofia Echo


Rila Sport has exchanged some of the forestry zones due to be included in its controversial ski resort of Panichishte-Ezerata-Kaboul (PEK) in Rila Mountain for other, less attractive, investment areas.

The Sustain Nature in Bulgaria (SNB) coalition revealed the news on April 10, adding that the next case of so-called land-swapping is aimed for “near the village of Panichishte”, which is in the Rila buffer zone by the border of the Rila National Park.

However, Rila Sport’s executive director, Slaveyko Staykov, denied that his company would perpetrate illegal acts in the PEK project. “The wood itself will not be broken into, although the first lift stations and gondolas will be constructed there. Tourism facilities are also planned there (in the PEK project), as well as hotels,” he told The Sofia Echo on April 10.

The history of the controversial project is as follows: On July 14 2005 Rila Sport AD, which represents an offshore company of uncertain origin, acquired 450 decares in land from the state forest fund. The land, according to SNB, was valued at 824 528 leva. Staykov, for his part, confirmed the size of the plot in question but did not reveal its cost, merely confirming that it dated back to 2005. “In exchange for this land we handed over 723 decares in several spots near the towns of Lovetch and Vidin (northern Bulgaria),” he said.

SNB, however, believes that the forest land in question was along the “current illegally constructed road from the village of Panichishte to Pionerska hut”. The coalition also said that the area was “in the immediate vicinity of the projected and currently illegally constructed ski slopes and lifts in the region of Pionerska hut”. Responding to this statement, Staykov denied that a new road had been built. He maintained that his company had merely reconstructed an existing asphalt road. However, the asphalt road in that area is only lower in the mountain and reaches Panichishte village but does not go higher to the huts, Katerina Rakovska from WWF (World Wildlife Foundation) Bulgaria told The Sofia Echo.

The area of the Seven Rila Lakes was currently accessible only on foot from Panichishte village. Tourists were, however, offered lifts in military off-road vehicles by drivers who took them up to the first of the seven lakes.

Staykov commented that Rila Sport would replace off-road vehicles with silent lifts, so transporting tourists easily up to the lakes in an environmentally-friendly manner. Rakovska, for her part, said she was unable to pass judgement on two illegal modes of transport. Driving motor vehicles in the national park was illegal but so was the ski lift construction, she said. She also said that the lift construction flouts the Protected Areas Act and the Rila National Park Management Plan 2001-2011, which had been approved by the Cabinet.

“I don’t see how any lift can be constructed legally in the national park. Therefore I don’t see any sense in discussing a more, or less, environmentally friendly way to do so,” she said. She also cited other legal violations involved in the construction. These included the fact that Rila Sport had not been awarded a concession for this territory and that the site of the first lift is part of a Natura 2000 zone. She also said that the building has been completed without the obligatory Natura 2000 compatibility assessment. The environmental impact assessment of the project also expired long ago, Rakovska said.

However, Staykov countered that about 80 per cent of lands incorporated in the PEK project do not include wooded areas. Hence Rila Sport chose this area for its ski resort project, using the already existing plain areas of Rila national park for its ski slopes. According to him, when two metres of snow falls, there is no way a skier can destroy the ground under the snow, as he would only be skiing on the surface of the ice. Only snow ploughs would groom the pistes after a sufficient snow fall. He confirmed that about 15-20 lifts are planned for construction and they would be built only after the project is co-ordinated with the area’s Master Plan. Staykov said the already existing huts in Rila National Park would only be renovated but that bed capacity in the national park would not increase. He said that the project is still a work in progress and would be submitted for co-ordination to the local municipality later this year.

Construction on ski lifts would be followed by service buildings and garages in the national park, Rakovska said. She said that PEK plans to build accompanying buildings and that construction would not end when the lifts are completed.

In return for receiving, in 2004, the attractive wooded area of 200.6 decares in Panichishte village, SNB said that Rila Sport concluded “an arrangement deal” with Sapareva Banya municipality. The deal obliged the company to invest 2.8 million leva in planning, constructing and rehabilitating “municipal infrastructure projects”, a check of Kyustendil Regional Prosecutor’s Office showed. However, a Daxy check-up (a public database of company registrations) showed that at that time Rila Sport had initial capital of just 50 000 leva. SNB said that this sum was insufficient for what Rila Sport promised to do in Sapareva Banya municipality.

SNB also said in an April 10 media statement that the coalition is organising a “silent vigil for Rila” in four Bulgarian cities. Environmentalists and ordinary citizens insisted on cancelling construction on the “illegal PEK ski resort and the Rila Buffer zone to be included in Natura 2000”. The state was also pressurised to start an active policy for “alternative tourism development”.

The vigil took place on April 11 in Sofia at the crossroads of Levski and Patriarh Evtimii Boulevards. In Rousse it took place in front of Rousse Regional Court building. In Varna the vigil was held in Nezavisimost Square and in Veliko Tarnovo in front of the municipality.

Overseas property: How to find a hotspot


Every month, Zoe Dare Hall shows how experienced investors make a profit from buying and selling property abroad

Part 3: Is it OK to borrow?
Part 2: A question of risk
Property overseas homepage
Until about 18 months ago, you would be hard-pressed to fail to make money from investing in overseas property. Everywhere was emerging and on the up.


But, in these credit-crunch times, it is a different story. The US and Spanish markets are floundering. Recent successes, such as Estonia and Latvia, are slipping. So where do you turn to now?

Follow the locals

"An interesting indicator of future growth areas are places where wealthy locals go on holiday," says Lance Nelson of Jet2Let Property.

"Seek out undeveloped enclaves with a couple of high-end hotels, such as the Bulgarian resort of Byala or Sapareva Banya, which has the hottest natural springs in Europe. Water spas are popular among Eastern Europeans, Russians and Japanese tourists and offer year-round rental potential."

Dubai has also developed as a major business hub, so it is not entirely dependent on tourism, says Nelson. "Dubai is a case of following the locals if they are getting richer. After doubts about its sustainability with such rapid growth, there is now a clear reason to invest there."

Egypt's investment market is also sparking interest. Its population of 80 million is growing in wealth and there is a major tourism drive. El Gouna ont he Red Sea coast is a luxury golf, beach and marina resort where 50 per cent of buyers are Egyptian.

"A holiday home in El Gouna is a must-have for wealthy Cairo families wanting to escape the city, so that is your exit strategy," says Jeremy Sturgess of the Raven Group, which is selling properties next to a new marina from £75,000.

Follow the Russians

The Russians are snapping up everything in sight - not just billionaires buying in London, but a new "business class" - estimated at about 55?million people.

"They are looking for luxury investments and holiday homes outside Russia because luxury is so expensive at home," says Alex Evans of Overseas Property Professional magazine. "Russian demand is having a big impact on build quality in parts of Bulgaria."

Turkey and Egypt are also tempting the Russians, says Lance Nelson. "They are buying in prime locations in Croatia, Montenegro and Dubai. The flashiest Bulgarian beach resort or ski property will cost a fifth of similar luxury in Moscow."

Look for the exit

While foreign investors in many Eastern European countries are pushing up prices and rents beyond the domestic market's grasp -particularly Bulgaria - local wages in Budapest are high enough for Hungarians to afford property in the £150,000-£230,000 price range, comments Alistair Powell of Seven Continent Investment (7Ci).

"Look for properties that the locals want and can afford, to open up your selling options," he says.

Also look for strategic locations to multiple markets: Georgia, for example, says Powell. The former Soviet republic has major links with Russia and - because of its oil pipeline - the US. "With its return to economic and political stability, Georgia is set to boom over the next few years as a business and tourism destination," he adds.

Don't think cheap

The British philosophy when investing abroad is that the cheaper the property, the better value the investment, but often this is not the case.

"There is far wider rental demand for large, high-end apartments than for cheap one-beds, and the price difference between an average property and one with a sea view is minimal - perhaps 20 per cent more," says Nelson. "In mature markets, such as Spain, you will pay double for a seafront property compared with one a block behind."

Cheap properties abroad owned by people who need a loan will be worst hit by the credit crunch, says Russell Bragg of Premier Resorts.

"Spain, and possibly the Algarve and Turkey, will be badly affected in the current economic climate, but the 'boutique' end of the market will remain insulated from the effects of the credit crunch," says Bragg.

"There is still a hunger for top-quality resort property, particularly in France and Italy, which attract a more affluent clientele, Portugal's Silver Coast, and the emerging market of Greece."

Contact Jet2Let Property www.jet2letproperty.com 0113 313 1000; Raven Group www.ancientsandsresort.com 020 7235 0422; Premier Resorts www.premier resorts.co.uk 020 8940 9406; Olive Tree International www.olivetreeworld.com 0845 257 0227
What the experts say


LANCE NELSON

Jet2Let

"Look for resorts that appeal to Russian buyers - Bulgaria, Turkey and Cyprus are key places, for example. Or consider secondary cities that will benefit from a capital or main city's boom in countries such as Poland, Romania or the United Arab Emirates."


RUSSELL BRAGG

Premier Resorts

"Beware of the spin surrounding emerging markets, which can outweigh their potential. Bulgaria is a case in point, attracting investors in the run-up to EU accession, who are now struggling to resell their properties."


RICHARD BRADY

Oliver Tree International

"Find somewhere that is undervalued, which is seeing investment in infrastructure - new airports, motorways or European Union grants for developers. South?east Crete is a good example, with a new airport to be opened next year and £1.5?billion government investment into the region."

Danish Politicians Warns of Dangers Associated with Bansko Development
Published by Frederick Wallace on March 18, 2008 in Ski Bulgaria and Ski Europe. 

A Danish member of the European Parliament (MEP) Margarete Auken visited Bulgaria earlier this month and, according to a report in the Sofia Echo, “ left the country with the impression that the problems with the Bulgarian nature were very serious and linked closely to organised crime, which destroys the nature and transforms it into money.”

Auken is reported to have complained to European Union environment commissioner Stavros Dimas that Bulgaria is not respecting the EC Environmental Law and requested that sanctions be taken against the country, according to green campaigners in Bulgaria.
The Sofia Echo reported that after Auken saw the area of Rila Mountain, where the company Rila Sport wants to build the Panichishte-Ezerata-Kaboul ski resort, which environmentalist fear would destroy the unique Seven Rila Lakes area, she said: “Maybe the part of your tourism will remain, in which the visitors go to the pubs and drink, but this is not very good for the country.”
“I saw that there are plans (for ski resorts) not only in Rila buffer zone but also inside the natural park. I don’t know what types of ski resorts it is all about, because with the climate changes, which are currently evident, this is not the cleverest investment I have seen. You destroy the nature and at the same time you will not have development of the ski resorts,” Auken said.

What is happening here cannot even be called capitalism. It is a very bad capitalism when you start losing valuable things,”
she said.
However Auken’s visit to parts of Rila needed to be changed as about 4000 residents of the surrounding villages gathered to protest against her visit and to support the ski resort project “Panichishte-Ezerata-Kaboul.” The pro-development protestors carried posters saying, “There is no future for the region without the project”.
The protest against Aken’s visit was organized by local mayors of the villages where the development will take place. Sapareva Banya mayor Sasho Ivanov said that environmentalist’s claims that hotels would be built around the Seven Rila Lakes, that ski slopes would be built on the territory of the Skakavitsa reservation and in Rila National Park around the Seven Rila Lakes and that there would be a road between Pionerska hut and the Seven Rila Lakes were all lies.

Sapareva banya town hall approves illegal ski zone construction
18:44 Fri 29 Feb 2008 - Elitsa Grancharova

Environmental non-government organisations have criticised on February 29 the decision of the Sapareva banya town hall to approve illegal construction of the Panichishte-Ezerata-Kaboul ski zone.

The town hall went as far as to declare environmental activists Tsveta Hristova and Andrey Kovatchev personas non grata for “their considerable input to stopping the municipality development,” Blagoevgrad-based non-governmental organisation Tetida said.

Hristova and Kovachev are members of the Sustain the Nature in Bulgaria (SNB) and Citizens for Rila (CR) NGOs, promoting sustainable tourism development in the area and campaigning against the illegal ski resort construction.

Sapareva banya residents would like to develop alternative and eco tourism but they do not receive support from the local and the central authorities, the NGOs said.

Sapareva Banya municipality is located in the foothills of Rila Mountain and is in charge of the preservation of the portion of Rila National Park located near the town.

The illegal ski zone has been under construction since the summer of 2007, and the building is going on in violation with the Bulgarian legislation and the European directives on Natura 2000 environmental network, SNB said.

Panichishte-Ezerata-Kaboul project is also in direct contradiction with the Strategy for Sustainable Tourism Development for 2008-2013 adopted by the 12 municipalities surrounding Rila national park, including Sapareva banya. The main goal of the strategy is increasing the prosperity of local residents through sustainable tourism development, as well as the preservation of the biological diversity, the landscape, the historical heritage and the authentic local culture in and around the national park. Rila national park is also a member if PAN Parks, a network that works on nature preservation and development of sustainable ecological businesses the protected areas.

According to SNB, the violations in relation to the construction of the also called Super Panichishte ski zone are leading to assumptions that the case with Bansko ski zone in Pirin Mountain will occur again. ”If this happens Bulgaria will have to pay sanctions to the European Commission because of destructing habitats from the European environmental network Natura 2000,” SNB said. That money will be paid by all taxpayers but not by the local or central authorities that allowed this to happen, the coalition warned.

The environmentalists blame the Ministry of Environment and Water Affairs (MOEW) for this situation. In 2005, in a letter to Sapareva banya municipality MOEW said that the local authority couldn’t consider a master plan for “Tourist and ski centre Panichishte-Ezerata-Kaboul”, as the project contradicts to the legislation because the planned slopes and equipments would be constructed in a national park. However, subsequently MOEW itself started a procedure of this project environmental assessment and on this way it gave hope to Separeva banya municipality that such ski zone can be legalized and constructed.

SNB again reminded that about 100,000 citizens signed the Internet and paper petitions in favour of stopping the illegal construction. In Sapareva banya and the nearby towns of Dupnitsa and Samokov the petition was disseminated secretly among the residents because they are worried about having problems with the local authorities if they find out that the population is against the ski zone, SBN said.

Property Investments - Bulgaria Reformed?

Quest Bulgaria, 29 Jan 2008

Perhaps best known for cheap booze, Communism, bargain property prices and fake watches, Bulgaria is fast becoming a destination of boutique cities, with style and culture, making it ripe for property investment.

Visitors to Bulgaria have changed from bargain hunters to those looking for luxury and elegance, says the English monthly magazine Quest Bulgaria.
Situated in Eastern Europe and surrounded by Greece, Turkey, Serbia and Romania, Quest Bulgaria claim an increase in developers and greater confidence in the country, since Bulgaria joined the European Union, has led to the positive changes in the country.

“The evidence for this is overwhelming. Everywhere you look there are boutiques, designer shops and even the wine industry is taking on a new look,” says Chris Goodall, managing director of Quest Bulgaria.
Wineries, such as those in Todoroff have in the last two years won numerous awards including medals at the world-renowned Vinalies Internationales Wine Tasting Show in Paris.

“Golden Sands, once the darling of discos and “kiss-me-quick” tourists has undergone a dramatic change – and it’s good to see,” adds Goodhall.
The number of lavish and professionally design golf courses, such as The Gary Player designed Black Sea Rama golf complex, alongside associated properties have also increased in Bulgarian cities, including the capital city of Sofia.

Bulgaria’s popularity amongst the British has increased significantly over the last few years, for other reasons also, including their ski resorts and diving destinations. Read more: Skiing in Bulgaria: Bansko Essentials and Five of the Best: Diving Destinations.
Although many may welcome the transformation, Quest Bulgaria warns that the cost of such luxurious properties on these complexes is much higher than equivalent properties in neighbouring towns and villages.

The cost of a four bed-roomed cliff-top home built on some of these lavish properties, like the Black Sea Rama gold complex range from £330,000.
However there are still bargains to be had in the surrounding villages, while Quest Bulgaria suggest those who are keen to invest in rural Bulgaria should move quick, as luxury properties are sure to reach those destinations also.

Additionally, Lance Nelson of Jet2Let Property believes spa tourism is the way forward for a more exclusive Bulgaria.
“The spa town of Sapareva Banya is under an hour away from Sofia and, surrounded by lakes and high peaks, offers an unspoilt year-round destination,” says Nelson.

“And on top of that, it has the hottest spring waters in continental Europe and the only active geyser in the Balkans,” he added. “This alongside being just 30 minutes away from Borovets and 15 minutes from Panichishte mean that Sapareva Banya is set to be one of the most promising year round destinations offering investors and tourists alike a world class mountain environment.” Say Nelson.

2007-12-18 Super Panichishte Project

Real estate investment company FairPlay International will invest 50 mln levs in a vacation complex in ski resort Panichishte, in Bulgaria's Rila mountain, the company said in a filing with the local stock exchange.

Construction is scheduled to get underway in 2008 and wrap by 2010. The scheme will deliver a luxury hotel with more than 100 rooms and over 300 apartments with a total built-up area of 31,796. The hotel will be leased while the apartments will be sold with prices expected to start from 1,000 euro/sq m. The fund estimates a return of 40-60% from the apartment inventory.

FairPlay considers Panichishte to be an underdeveloped tourism destination with great potential due to its proximity to the Rila national park. FairPlay Properties posted a profit of 5 mln levs in the first half of 2007 off of 20.4 mln levs in revenue, shows the unconsolidated financial report.

Sales of apartments in coastal resort Santa Marina and St Ivan Rilski in ski resort Bansko generated over 80% of H1 income. The assets of the company are booked at 80.35 mln levs. Sales and rent income is projected at 53.2 mln levs for 2007 and at 60.6 mln levs for 2008. Earnings are forecast at 11.8 mln levs for 2007 and 16.5 mln levs for 2008. (Dnevnik)

Raising the Bar for the Smart Set in "Cheap'n'cheerful" Bulgaria
The Daily Telegraph

European and Russian investors have been flocking to buy luxury newbuilds on the Black Sea and in Borovets. Zoe Dare Hall suggests British buyers might be missing out on some of the best investment opportunities

Loved or hated for it, cheapness is the reason you go to Bulgaria. Cheap beach holidays, cheap skiing, cheap flights and cheap food and drink. Even in Bulgaria's number one restaurant, Musala Palace in Varna, two people can indulge themselves in style for less than £40.

The country's property market has evolved in a similarly budget-minded way. Search for Bulgarian property on Primelocation.com and you plough through 20 pages before you even reach £10,000.

Try to spend more than £100,000 and you are hard-pressed to find anything. As home to many of the country's 200,000 millionaires, Sofia, the capital, naturally has a higher number of top-end properties. But even there, only a quarter of the 130 homes shown on Primelocation hit six figures.

On the Black Sea coast, which includes Sunny Beach, the resort which has seen half of all coastal newbuild in Bulgaria, less than a sixth of the 675 properties for sale exceed £100,000. Bansko and Borovets, the main ski destinations, are even more slanted towards budget buyers. Of 280 properties, 258 cost less than six figures.

According to Colliers International, the current price range for Bulgarian property is £550-£1,170 per square metre, putting it on a par with Albania at the lowest level and Budapest at its peak. So does all that mean that there is no such thing as "upmarket Bulgaria" - that good quality is hard to come by ? Or is it possible to find real quality with unusually low price tags? Brian and Michelle Jones left Bristol last year for Bansko, in south west Bulgaria, and found the log cabin they were building for their retirement sparked interest from an unexpectedly wealthy spectrum of house-hunters.

In response, they set up Log Homes Bulgaria, building large, contemporary log cabins with floor-to-ceiling glass frontages, costing up to £200,000, around Bansko in the Pirin mountains and Pamporovo in the Rhodope mountains. The latter is considered the country's most upmarket ski resort, 80km from Plovdiv airport where Ryanair are negotiating for flights to start next year.

"We've had Majorcan millionaires and French bankers wanting to buy," says Brian. "Your average plumber or taxi driver buys in Bulgaria for investment and rental returns, but well-to-do buyers want something for their own use and this is a way to get a high-quality home in the mountains for about a fifth of the price of France or Austria."

St Vlas, near Sunny Beach, is an example of attractive, contemporary design, in a prime beachfront position - yet with apartments from £35,000. Frontline properties with views of the new marina and Nessebar Bay start at £92,000, from Barrasford & Bird. The area is in its infancy, but shops, restaurants, a five-star hotel and a ferry service across the bay are coming.

"St Vlas is in an ideal location for rentals because it's near Sunny Beach, but comparing the two areas is not comparing like-for-like," says the selling agent's MD, Robin Barrasford. "St Vlas is a quieter, more relaxing place with a mountain behind and the sea to the front, leaving little room for over-development." Since Bulgaria's EU accession this year, foreign buyers' confidence in the country has grown, he adds.

Where once the demand was purely for small, cheap investment flats, now buyers are looking for bigger, more luxurious, frontline properties which they can use themselves.

"The resale market has really picked up in the past six months - and resale buyers aren't typically looking to get in and out of the property market quickly," says Barrasford.

"We're finding that people who have held on to their property for a couple of years in a good location, such as beside a marina or a ski slope in a good resort, are seeing returns of about 50 per cent when they sell."

Further north, near the 2,000-year-old town of Balchik, 35km from Varna airport, the BlackSeaRama Golf and Country Club is the sort of gated golf resort you expect to see in the Algarve or Costa del Sol. It raises the bar for Bulgarian newbuild villa prices, with four-bedroom cliff-top homes costing up to £330,000, set among vast landscaped gardens and with the complex's own mineral spring feeding a five-star spa.

"BlackSeaRama is a high-quality, low density golf development, more in sympathy with the environment, in a location that will remain attractive with high-spending tourists well into the future," says Lance Nelson of Jet2Let.

Nelson points to some equally lavish ski developments taking place in the mountains - the £345m Super Borovets project, with ski-in, ski-out projects such as Semiramida Gardens, and Barco in Pamporovo. But he thinks that spa tourism is the way forward for a more upmarket Bulgaria, with genuine all-year letting potential.

"The spa town of Sapareva Banya, under an hour on a new road from Sofia and surrounded by lakes and high peaks, offers an unspoilt, year- round destination. It also has the hottest spring water in Europe and the only active geyser in Balkans," he says. One-bed apartments at Savoy Lodge in Sapareva Banya cost from £36,800 through Jet2Let.

The problem, Nelson thinks, is that Bulgaria's cheap and cheerful associations have attracted Brits in search of bargains, and they are missing out on the best investment opportunities. "Of all foreign buyers in Bulgaria, 67 per cent are British and most are attracted by the cheap properties. Quality and location are often uninspiring and prices in the over-developed resorts have dropped by up to 10 per cent this year. But many UK estate agents do not promote the expensive end of the frontline Black Sea market," says Nelson.

"There is only one frontline, as wealthy buyers and tourists know, and good quality, frontline beach apartments on the Black Sea have risen in value by 30 per cent in the last 12 months," he adds, citing Santa Marina in Bourgas Bay, 35 minutes from Bourgas airport, as a good, low-density beach development with two-bedroom apartments from £52,000. "Coastal projects like this are generating strong rental returns of 8 to 10 per cent a year, mainly from Russian tourists, but also from UK, Irish and Norwegian tour companies," he says.

Demand from international buyers working for multinationals in Sofia, and from the emerging Bulgarian middle class, is pushing up quality levels in new developments, according to Kevin Prior from Obelisk International.

"Luxury properties are still within the affordable range of many overseas buyers compared with more traditional markets such as Spain or Portugal," says Prior, who is selling two-bedroom, Alpine-style villas from £115,000 at Seven Lakes in the spa town of Dolna Banya, an hour from Sofia.

Bulgaria may still largely be an investment rather than holiday home destination in British buyers' eyes, but the rest of Europe feels differently, says Robin Barrasford.

"Bulgaria was a popular holiday destination long before the UK investment market 'discovered' it over four years ago, and that isn't going to change," he says. "UK buyers' interest may wane in favour of the next big thing, but other Europeans will continue to see Bulgaria as their preferred destination. Eventuall,y the UK market will settle more into the role of long-term lifestyle buyers there."

Boutique bargains

Bulgarian property may be seeing a gradual shift towards good design and build quality, but outside of Bansko, where Savills are selling Mountain Residences for £39,000- £160,000, you will still be hard pressed to find familiar, reputable British agents selling there.

One exception is YooBulgaria, an unexpected departure for John Hitchcox's Yoo brand, who are more accustomed to building designer pads for the young and wealthy in the likes of Miami or Sydney.

Hitchcox's beachfront scheme, with Unique Developments, in the Black Sea resort of Obzor, 55km from Varna airport, has apartments from £49,000 and huge, two-storey penthouses costing a more Western European £250,000. But then they do have a unique beachfront position (new laws mean there can be no more frontline building in Obzor) and phenomenal, uninterrupted views of long, sandy beaches and blue - despite its name - sea.

The apartments come with the trademark Yoo interior design touches, with large decking terraces, boutique chic bathrooms and optional Philippe Starck extras for a price. Adding upmarket endorsement to the glamorous brand, the UK selling agent is Knight Frank, who are tentatively dipping their toe in the Black Sea for the first time. So far the vast majority of buyers are Russian.

Prices are the cheapest of any Yoo development, Hitchcox confirms, "but the cost of labour and materials is cheap. The development will fit in with our usual concept and design but won't just be limited to the rich."

With plans for future developments around Kavarna and Byala, he says he is there for the long-term. "I'm really pro Bulgaria and I'm consistent with my pro-ness," he says. "We'll be here for at least 15 to 20 years."

Obzor's utilitarian seaside blocks may betray its past as a holiday resort for the old Eastern bloc, but Hitchcox sees great potential. "It's so close to Western and Central Europe that it's only a matter of time before it picks up and appeals to a wider market."

Perception is the biggest barrier Unique Development's marketing manager Charlotte Melsom is struggling with in selling Bulgaria. "Nearly all British people who come and see the development buy. Getting them here is the problem."