A dramatic increase in the total number of holiday home units in Bulgaria in the first half of 2007 was reported by Colliers Bulgaria on November 5.

Colliers’ latest research showed that in mountain resorts, supply had increased by 52 per cent after almost 10 000 new apartment units were put on the market. Supply in coastal resorts also increased substantially and recorded a 39 per cent growth, or 13 500 apartment units, in the first half of 2007.

The total number of holiday homes units as of June 2007 was found to exceed 76 500. In the mountains, growth was most significant in the Bansko area (including Razlog), which accounted for 78 per cent of new supply. On the Black Sea coast, although Slanchev Bryag (Sunny Beach) continued to account for more than a third of supply, other resorts saw accelerated development as well. In Sveti Vlas and in Sozopol, supply of holiday homes increased by 52 per cent and 62 per cent, respectively.

Overall sales prices in resort apartments remained unchanged for the past half year as supply continued to outpace demand. Price ranges remained within last year’s limits of between 800 euro and 1700 a sq m. According to Bulgaria’s National Statistical Institute, the average price of homes in the country rose by 30.6 per cent year on year to 572 euro a sq m in Q3, accelerating from 27.1 per cent year-on-year in Q2 and 22.6 per cent year-on-year in Q1. The data covered prices in the big cities and some of the smaller settlements in the district of Sofia. Home prices in Sofia surged by 42.1 per cent to 976 euro and outpaced again the Black Sea city of Varna which maintained the top position for several quarters. The prices of homes in Varna increased by 30.5 per cent to 898 euro a sq m in Q3 slowing from 35.3 per cent in Q2. The growth rate also weakened in the second largest city, Plovdiv, to 19.4 per cent but accelerated in the Black Sea city of Bourgas to 20.4 per cent against 15.8 per cent in Q2.

Atanas Garov, managing director of Colliers Bulgaria, said, “International buyers, predominantly British and Irish, continue to account for most of the demand. Recently we have seen a lot of Russians entering the market, and they look to become major players.” According to Ivan Velkov, general manager of Colliers Bulgaria, “the quality of developments is continuing to increase with an emphasis on professional management offering high quality services and ample amenities to buyers.”

In support of Garov’s words came reports posted on UK based website holidaylettings.co.uk.

“Sofia and Varna are promising locations for people wishing to invest short- or medium term in real estate,” the website said on October 30. According to another website, propertysecrets.net, there will be changing trends away from the seaside and mountains and especially the cities, and people will prefer to buy more isolated properties.

Analyst Simon Tweddle was quoted as saying by Bulgarian news agency BTA that “due to the multitude of foreign investors in the country over the last several years, finances seem to be further ahead in Bulgaria than in neighbouring countries, and are probably the most advanced in the whole region.”

Tweddle added: “Sofia is not the most beautiful place, but that the mountains to the South are an advantage”.