An interview with Chrystie Benson – Sales Director of Winslow Developments   

1. What are your latest observations on processes in European real estate market? The recent real estate market is proving to be more and more diverse.  The processes in which a person can acquire property abroad vary. Either if you are purchasing property in Warsaw, Poland or Vilnius, Lithuania the processes for obtaining ownership all depends on the country.During my own observations and participation in International property exhibitions, I have noticed that the processes for buying property are becoming more buyers friendly.  For example, there are an increasing number of legal firms, financial institutions, foreign exchange companies and professional investors looking to offer expert advice on buying property in the European market.  Therefore, obtaining a property abroad is becoming a lot easier.  

2. And how do they influence Bulgaria and South East Europe?

Since joining the EU Bulgaria is recognizing effective and efficient methods for allowing foreigners to buy property.  For example, some banks are now offering mortgages to foreign investors, and hopefully soon we will see this as a common practice. As well, we may look forward to EU interest rates offered in Bulgaria.Winslow Developments, as like other well established developers, are integrating many of these processes into our way of work. Winslow has integrated processes which allow our clients to feel comfortable and confident when purchasing property in Bulgaria. Our company has specialized departments, such as, in-house legal team, construction, financial, accounting, land acquisition, design, after sales, marketing team and of course, a professional sales department.Our company is well equipped to go “hand in hand” with our buyers from the initial stages of purchase to managing our client’s apartments once the sale is finalized. 

 

3. What do the investors think about Bulgaria?

There are many investors who still believe the false circulated myths that they will make 20-50% on their property investment in one – two years. A smart foreign investor is looking to invest in Bulgaria because they see the countries GREAT potential.  The capital city Sofia in particular is severely under rated, and prices are way below its other emerging counterparts.  It will be the smart investor who will seize the opportunity to plunge into this rare investment opportunity and reap the rewards later on.  It is my impression that there is only one direction in which prices are moving in Sofia and that is up.Other investors will see Bulgaria as an emerging market which is due to have accessible infrastructure, direct charter flights, EU standards, and increased tourism. Therefore, they envision the medium to long term capital gain.  Lastly, there are investors who will actually look deeper into Bulgaria as a whole, and visit the quaint towns and immerse themselves into the unforgotten culture.  Bulgaria is a land with exceptional beauty, culture and charm.  Investors who buy out of love and respect for this unique country will never have to worry about the short or long term gain because they have secured an invaluable investment. 

 

4. What are their expectations and what is the reality?

All buyers have certain expectations when purchasing a property abroad.  However, to ensure the expectations are met it is always good to do your home work first.  I always tell my clients to visitour completed projects and meet our people, so they can see first hand the quality of construction and our finished products.   Unfortunately, there are still many people who do not come and look at their investment before signing the dotted line. When making a large investment in a country which you are not familiar with it is always important to go with a developer who has a reputable history and has the funds to see the projects through.

 

5. Should one be cautious when considering investment in Bulgaria?

I think one should be cautious with any large investment either in Bulgaria, UK, North America or anywhere else.  As I discussed previously, it is essential that you invest with a reputable and reliable developer, preferably with experience or with influential backing, such as, International investors. 

 

6. How do the investors perceive the risks in Bulgaria and Romania after they joined the EU? 

I think the numbers of risks are decreasing since we joined the EU.  The EU has many influences and those can be seen in the real estate business.  For example, the developers are now focusing a lot of money on quality materials, attractive designs and construction. It is like any real estate market; the company who can out due the other in standard will win the trust of their target group.Romania is also an attractive market and from what I can see the government is spending a proposed 3 million euro on infrastructure in the capital Bucharest.    Both markets are hot but it is up to the investor to decide which is most attractive to them. 

 

7. How would you compare the local market to the other counties in the region – Turkey, Romania, Serbia, Croatia?

Each of these countries is unique in their own special way, so to compare them would not seem right. Bulgaria and Romania are both new in the EU and will be under going significant change over the coming years.Serbia is on its way back to being an attractive investment and the government has invested a large amount of money on infrastructure in the capital Belgrade.Turkey has enjoyed many years of successful tourism, especially in areas, such as, Bodrum and Istanbul.

 

8. Do they compete for the attention of the investors?

I do not believe they compete for attention as these countries differ in size, landscape, government, culture and economic stability.  For instance, Croatia is a country which has been attractive to the Italian, French and UK investor for some years now.  The prices in Dubrovnik are double compared to our coastal properties and the standard of living is on higher level.  Therefore, it is typically the price, location and expected personal gain that determines the investor’s interest.

 

9. Where in your opinion in this region can you find the highest return on investment in this region?

I am still a firm believer that the most profitable investment will be in the capital Sofia.  It is still unfathomable for me to believe that Sofia’s residential prices can still be found for less than 1000 euro. Sofia is now an EU capital city, which is under going major transitions, such as, new subway lines, new developments and better communication.  The transition may seem slow and hard to see, but mark my words, in a few years time Sofia will catch up to its fellow EU capitals; and many will be kicking themselves that they didn’t invest sooner.My second most favourable region for investment is in Bansko and its surrounding areas.  I agree there is a lot of development going on in this region.  However, the end result will be fantastic, as it will easily compete as a top European resort destination. The most interesting respect for investing in Bansko is the all year round appeal. I am not a skier, but I love Bansko during the spring and summer seasons!  The breathtaking beauty of the Pirin Mountain and surrounding landscape is exceptional.  During August the Jazz Festival features many international performances and is attracting many international tourists.  However, the most appealing aspect of Bansko is the gorgeous nature found while hiking through the trails in the Pirin Mountain.

 

10. Which are the factors determining the interest of the investors in a certain destination?

The most important criteria for foreign investment has been the capital or rental gain.  In previous years it has been “where can I double my money in the shortest period?”  However, times are changing and the investors are also changing, so the criteria’s have altered.  Investors are now focusing attention on mid to long term investments, as this is the more realistic picture in Bulgaria.The location is still relevant, but more people are considering low risk investment   opportunities, such as, all year round resorts and cities.

 

11. Which sectors attract the biggest attention at the moment?

The high tech industry and telemarketing are businesses which seem to be predominately setting up offices and business in Bulgaria.  Another sector which can not be avoided is tourism, and I believe it is only a matter of time before we see budget airlines having direct flights to the most popular destinations in Bulgaria.  Hopefully, this increase in tourism will help increase sales in the real estate market and will attract further international countries to take interest.

 

12. Are there any concerns that there is excess of office and commercial projects?

Since residential is Winslow’s primary focus it is not fair for me to judge whether there are substantial concerns regarding office and commercial spaces.  However, I would assume that the same rules would apply to the office and commercial sectors, as to the residential sector, namely that if the location and quality are right for the market then the demand will be there.

 

13. What are your predictions of the next most popular sector in real estate business which our market will be offering?

I am still finding a limited number of developments which are offering enclosed complexes with large green areas, and after sales management.  After some years it will be the luxury developments with management services that will succeed.  The high-end enclosed complexes will not succeed because of the initial selling price, but becauseof their desirability, lifestyle, high quality, visual look and additional services, which ensure their maintenance and management over years to come.

 

14. When can we expect world-class standards in Bulgaria?

Bulgaria still has a long way to go before we can start comparing it to the Western standards.  However, it is apparent the international and domestic influence is pouring in to several of Bulgaria’s sectors.  The real estate in Bulgaria will see many changes over the coming years, but we must be patient as we will not see these changes over night.In 10 years from now we may look back and remember the annoying electric radiators, boilers and external wiring as a thing of the past.  But, as everything in life, time will tell!                                                                                                              

Source: IndexImoti Magazine, Interview by Petya Ralcheva