London, 09 September 2006, The Sunday Telegraph By Graham Norwood

His studio isn`t built, but Graham Norwood has already made a profit

The comments from doubters began as soon as I paid my deposit on a new-build apartment in the Bulgarian ski resort of Bansko.

"It`s not a pig in a poke, is it?" wondered my accountant. "What a mistake," said another. But other voices ranged from from the double-edged: "It`s so cheap it doesn`t matter if it goes belly up" to the positively ecstatic: "You`ll make a killing."

Predictably, I favour the latter view on my decision to spend £47,000 on a studio flat in the resort which is 150 kilometres south of the capital, Sofia. I reckon Bulgaria, or at least some of it, has now come of age as a good investment.

Firstly, serious analysts rate the place highly. "It`s a classic combination of catch-up with the rest of Europe, some property speculation, second- home interest and slow but sustained economic growth," explains Liam Bailey, head of research at Knight Frank.

Secondly, respected agents like Hamptons and Savills are entering the Bulgarian market and introducing British standards such as proving ownership of land and ensuring there are legal deeds when property is sold. Thirdly, Bulgaria`s future looks bright. It claims to have fulfilled 70 per cent of the trade and economic reforms requested by the EU and an accession date is expected to be announced in October.

So where to buy? I discounted the Black Sea, where a glut of new apartments has flooded the market. Sofia will be a good buy-to-let market if international firms move in, but there`s stiff competition from Riga in Latvia, Prague in the Czech Republic and Warsaw in Poland.

So Bansko it was. It has 64 kilometres of ski slopes with another 200 kilometres planned, and with the opening of an Ian Woosnam-designed golf course, an equestrian centre and mountain biking and walking trails there is plenty to attract sun-seekers to Bansko too. Crucially, it will satisfy the key investment criteria of being popular all year round.

The old town is well-preserved with cobbled streets and a pleasing lack of brutalist communist-era architecture. The local men still sip coffee in small, dark cafes, although gradually these are disappearing as the streets are inevitably taken over by pizza restaurants and international bars.

The development with my third floor studio flat is close to the main ski slopes and will have a spa, games rooms, swimming pools and a 24-hour concierge service.

Things are already looking good for me. Knight Frank`s autumn 2006 global price index puts Bulgaria second in its 30-country league table of annual capital appreciation, with a 20.5 per cent rise since August 2005. The next phase of the scheme where I have bought has been launched with a 10 per cent price hike so, on paper at least, I`m already in profit.

Like most investors in an emerging market, I will not sell for five to 10 years. There will be hiccups - EU membership may be some years off, the over-supply of the Black Sea may spread to Bansko, too.

But a good investor always times his sale to avoid market dips and exploit market rises, and that`s what I plan to do. Oh, and I reckon I`m going to prove my accountant wrong, too.

Portfolio

Ski whizz: Apartments 500 yards from the ski-lift, a few feet from the new five-star Hotel Kempinksi, and close to Bansko centre. Apartment owners and tenants can enjoy a gym, swimming pool, sauna and jacuzzi as well as a café.
Price: £39,000 to £100,000
Contact: Savills (020 7016 3740, www.savills.com)

The Orchard: Bansko - apartments designed by trendy UK interiors consultancy the Manhattan Loft Corporation. They are five minutes from the main ski lifts.
Price: £38,100 to £100,000
Contact: Bulgarian Dreams, (0800 011 2750, www.bulgariandreams.com)

Golden Valley: Black Sea apartments and villas each with sea and mountain views. Fitness centre, 24 hour security and shops on site, but nearest major resort is five kilometres away.
Price: £28,225 to £93,202 for flats, villas over £100,000
Contact: Imoinvest (020 7845 0700, www.imoinvest.com)


Pros

Good capital appreciation prospects because of likely EU membership in the next two years.
Properties are still relatively low-cost.
Best agents will handle the buying bureaucracy - set up a company on your behalf.
Increasing numbers of flights to Sofia.
Purchase tax of only two per cent.
Cons

Real danger of over-supply and over-development on Black Sea coastal resorts.
Occasional reports of `false title` - disputed ownership of buildings or land bought by foreigners.
Setting up a company costs £400.
Up to 10 per cent estate agency fees when you sell.
Invest? 8/10

Key statistics

600: The number of natural springs with water temperatures from 20 to 60 degrees.
150: Kilometres of ski runs,
10,000: Lakes in high mountainous regions.
150: Days of sun on the northern coast.

I`m banking on Bansko-online edition