Property Insights: Bansko Real Estate Report (Aug-Oct 2023)

I’m thrilled to present a detailed report delving into the dynamic Bansko real estate landscape, crafted by the expertise of Cristian from Plus Property Bulgaria. Cristian responded to my inquiry about the current state of Bansko real estate on the Bansko Blog Facebook Group Property Chat, providing not just recent sales figures but also a comprehensive exploration of the intricacies driving market trends. Read on for what potential buyers are seeking and the factors contributing to the considerable variation in Bansko property prices.

Recent Property Sales (Aug-Oct 2023)

Studios:

1. St. John’s Park, High Bansko
   • Type: Residential
   • Size: 43sqm
   • Sale Price: 30,000 EUR
   • Price/sqm: 697 EUR
2. Crown, Bansko
   • Type: Residential
   • Size: 42sqm
   • Sale Price: 33,000 EUR
   • Price/sqm: 785 EUR
3. Maria Antoneta, Next to Ski Lift
   • Type: Spa
   • Size: 34sqm
   • Sale Price: 28,500 EUR
   • Price/sqm: 838 EUR
4. White Rocks, Low Bansko
   • Type: Residential
   • Size: 26sqm
   • Sale Price: 17,900 EUR
   • Price/sqm: 688 EUR
5. Casa Karina, Next to Ski Lift
   • Type: Spa, Open Year-round
   • Size: 45sqm
   • Sale Price: 45,000 EUR
   • Price/sqm: 1,000 EUR

One Bedroom: 6. River Lodge, Bottom Town

• Size: 50sqm
• Sale Price: 39,000 EUR
• Price/sqm: 780 EUR

7. Winslow Infinity, Spa Hotel
   • Size: 67sqm
   • Sale Price: 55,000 EUR
   • Price/sqm: 820 EUR
8. Predela 1, Ski Lift
   • Type: Apart Hotel
   • Size: 66sqm
   • Sale Price: 55,000 EUR
   • Price/sqm: 833 EUR
9. Pirin River, Apt Hotel
   • Size: 67sqm
   • Sale Price: 48,000 EUR
   • Price/sqm: 716 EUR
10. Emerald, Ski Lift
    • Type: Residential
    • Size: 70sqm
    • Sale Price: 42,000 EUR
    • Price/sqm: 600 EUR

Two Bedrooms: 11. Predela 1 – Size: 74sqm – Sale Price: 63,500 EUR – Price/sqm: 858 EUR

12. River Lodge, Bottom Town
    • Type: Residential
    • Size: 66sqm
    • Sale Price: 56,000 EUR
    • Price/sqm: 848 EUR
13. Cedar Lodge 2, Ski Area
    • Type: Residential
    • Size: 83sqm
    • Sale Price: 72,000 EUR
    • Price/sqm: 867 EUR
14. St. Ivan Ski, Up Hill
    • Type: Residential
    • Size: 68sqm
    • Sale Price: 66,750 EUR
    • Price/sqm: 981 EUR

General Market Trends:

• Price Range: 600 to 1,000 EUR/sqm
• Average Price (Last 3 Months): 830 EUR/sqm
• Outside Bansko: 10-25% lower prices, excluding Pirin Golf

Key Influencing Factors on Property Prices:

Lowest Prices:

1. Buildings with Issues (Mismanaged, No Maintenance, No Private Electric Accounts, Other Issues)
2. Basement Apartments
3. Location

Highest Prices:

1. South-Facing/Mountain Views
2. Spa Hotels Open Year-round/Rentals
3. Well-Maintained Buildings/Nicely Furnished Apartments

Property Valuation Factors:

1. Sun Orientation
2. Views
3. Location
4. Spa Hotel/Rentals
5. Quality of Management/Value for Maintenance/Building Upkeep
6. Apartment Repair Status and Furnishing Quality/Design
7. Balcony (Mostly Required)
8. Floors (Ground, and Then Under Roof Less Required)
9. Specific Client and Their Requirements
10. Others

Buyer Demographics (Last 6 Months):

• Bulgaria, Israel, Germany, Romania, Ukraine, Czech Republic, France, USA, UK, Ireland, Norway, Italy, Russia, Serbia

Digital Nomad Engagement:

• Plus Property sold 17% of units to Digital Nomads

Market Insights from Cristian:

• Market remains active, with a slight decrease compared to the previous year.
• Buyers with lower budgets or mortgages are prevalent.
• Some buyers are cautious and selective, waiting for ideal units.
• Sellers maintaining prices from the previous year despite lower average market prices.
• Buyers are awaiting the completion of more buildings and potential recession for lower prices.

Market Outlook:

• Balancing forces of demand and supply keeping prices stable.
• Prices went down in the first half of the year and slightly increased due to summer/autumn demand.
• Anticipated stability in prices for the immediate future.

Size Matters: A Closer Look at Unit Pricing

Cristian emphasises a fascinating phenomenon in the Bansko real estate market—unit size significantly influences price per square meter. Smaller units often command a higher price/sqm due to relatively lower asking prices. Conversely, larger units tend to have a smaller price/sqm, ensuring a more accessible asking price for potential buyers. This assumes all other things are equal! Plus Property’s valuations remain accurate for each market period, ensuring a smooth selling process within 1-4 months.

The Art of Pricing: A Balancing Act

Cristian delves into the delicate art of pricing, revealing that while asking prices can start at the seller’s discretion, prolonged market presence requires downward adjustment. If a property remains on the market after 2-3 months and over 20 viewings, sellers are prompted to reassess. This meticulous approach ensures that every property finds its rightful owner in a reasonable timeframe.

Unlocking the Secrets of Unsold Properties

Cristian unveils situations where seemingly correct prices fail to translate into successful sales. In such cases, Plus Property investigates potential issues like furniture arrangement, sparse furnishings, or the need for upgrades or staging. By identifying and addressing these factors, Plus Property Bulgaria collaborates with sellers to enhance the market appeal, ultimately resulting in successful sales.

Editor’s note: Sellers with Plus Property can request a Bansko Vlog video which, subject to approval, will be placed on the Bansko Blog YouTube’s channel thereby reaching more potential buyers.

Spotlight on Exclusive Offers: One-Bedroom Gems

Cristian presents exclusive one-bedroom offerings with diverse features to suit varying preferences:

1. St. Ivan Ski – 42,000 EUR
2. White Peak Lodge – 47,900 EUR
3. Sapphire – 49,500 EUR
4. Courtyard Apartment – Price on Request

Two-Bedroom Marvels: Mountain Paradise Awaits

Explore the charm of two-bedroom apartments with picturesque settings:

1. Mountain Paradise 2 – 63,000 EUR
2. St. John’s Park (Penthouse Duplex) – 63,000 EUR (Negotiable)

Market Insights and Trends: A Recap

Cristian provides valuable insights into the market trends, reflecting on the average prices over the past year. Despite a brief drop in the first half of 2023, the market picked up from July to October 2023, with increased demand and higher prices.

Looking to the Future: Projections and Recommendations

Cristian anticipates stable pricing in the immediate future, with the possibility of an increase next summer. For those considering buying or selling in Bansko, the Plus Property team stands ready to offer expert guidance and personalised assistance.

For personalised assistance in buying or selling in the Bansko-Razlog area, please reach out to Cristian Zarnescu pluspropertybg.com | info@pluspropertybg.com or +359 899 178 644.

My personal view

In the intricate landscape of the Bansko property market, I advocate for a philosophy that transcends mere financial considerations: buy property because it brings you joy. Trust your instincts, stay within your budget, and resist the allure of chasing bargains that may result in hasty, regrettable decisions.

As I reflect on current market dynamics, Cristian’s price predictions seem to align with a broader economic context. Europe and the United States appear to be teetering on the edge of a recession, with a Sovereign Debt crisis looming. The proposed solutions in both Europe and the US hint at a reliance on inflation to alleviate debt burdens, especially for countries grappling with Debt-to-GDP ratios exceeding 100%. I must add here that Bulgaria has a Debt to GDP ratio of 21% (rising to 25% in 20215) but I believe Bulgaria risks having a stubborn inflationary problem due to much of its economy tied to the fortunes of the wider European economy.

In this backdrop, my long-term perspective suggests that as operational costs in Bulgaria rise, property prices will emerge as a reliable hedge against inflation. The current market scenario indicates that properties in Bansko are selling at, or close to, their construction costs, minimising the monetary premium and, in some cases, even yielding a negative premium.

Bulgaria, with its competitive economic and natural positives, is positioned as a promising investment destination. Beyond the immediate financial considerations, the town provides a unique blend of amenities that resonate with a significant sub section of individuals from around the world. I foresee a growing trend where more people will choose Bansko as their residence, drawn by its exceptional value for money.

For those seeking a cost-effective, tax-friendly base in Europe, Bansko stands out as an enticing option. The town’s potential as a haven in times of economic uncertainty further reinforces its appeal. In essence, my perspective extends beyond the current market fluctuations, emphasising the enduring value of Bansko as a lifestyle choice and a sound investment in the face of changing economic tides.

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Note: Not financial advice. Prices are subject to change based on market dynamics and seller preferences.