Link to Bulgaria

Ben Kane, from Wirral in Cheshire, studied to become an electrician, then worked as an Insurance broker, but found he had passion for Bulgarian property. On a trip to BG, a few years back, he met the founders of ‘Link to Bulgaria' and together they have taken on this growing market. We meet him at his office in Veliko Turnovo and talk to him about the changing economic landscape, corruption and what lies ahead for Bulgaria.

By Camilla Kaas Stock

How is the market in Bulgaria at the moment?

It is definitely quieter this year. The British buyers have been driving the market here, but now people in the UK are worried about what is happening to the British economy. On the other hand, there are still people looking to invest their money, and because the housing market in England is rather shaky, people feel that Bulgaria is a better bet. Also we are now getting more Bulgarian buyers, approximately 50 per cent British and 50 per cent Bulgarian, as well as other nationalities, like Russian, French, and even Lithuanian.

What sort of properties are they looking for?

In previous years we mostly got clients looking for cheap village houses that they could renovate, but now the people coming through the door have more money and want something bigger and better.

Is the area around Sunny Beach and Bansko still most popular?

This trend is now shifting. We are currently selling more apartments in town. Of course, we are still getting clients who want to buy properties on the coast, but there has been too much building the last couple of years and there are currently about 50, 000 apartments for sale. Because of this, we are encouraging our clients to put in a cheeky offer, as there are good deals to be had.

Bansko, on the other hand, is completely dead at the moment. It has just been too overdeveloped and we are not getting any enquiries at all. Around Christmas time the price was around 2,000 Euro pr sq. meter, but the price has now plummeted to about 5-600 Euro pr sq. meter. A lot of developers are losing money there now. It's a shame because it is a beautiful place.

Why do you think this has happened?

Partly it is down to the economic downturn, but I also think part of the problem is that everybody wanted to get in on the action and make some fast money. This caused over-development and the infrastructure can't cope, especially in Bansko. Basically, the market got ahead of itself.

I think Bulgaria needs to calm down and not grow too quickly, otherwise people will lose interest. Last year Bulgaria was seen as the fastest riser, while Spain and France was going down. This year Bulgaria is on its way down, while interest for Spain and France is rising again. People were attracted to BG because of the reasonable prices, but the prices rose too fast and it is natural for them to balance out.

How is the downturn in the market affecting the businesses here?

Let me give you a cheesy estate agent quote, "When the tide is out, you can see who is swimming with their swimming trunks and who is naked". There are a lot of smaller estate agents closing down at the moment, the ones that will survive are the ones who aren't looking just to make a quick buck, but to also provide the customers with a good service and make an honest living. Also the bigger companies have to adhere to certain rules, which keep them more regulated. And this will be a good thing for Bulgaria. I don't want to mention names but there are companies who charge their customers a lot of money for their services and basically just rip them off.

Are people coming over here worried about corruption?

Yes, that is one of the first things people say when they come through the door: "What about the corruption?" It is definitely a big worry for people. But Bulgaria is part of the EU now and these creases will be ironed out with time. There is also a lack of understanding when it comes to customer service here, and everybody has heard of the horror stories about people getting ripped off. I have actually met a British couple who bought a property through a company over eBay, not a good thing to do, just to find there were other people living there! But the clients coming here now are armed with much more information and know what to watch out for, which is good.

What areas are you expecting to rise the next few years?

Veliko Turnovo and, of course, the capital Sofia. Also there are some beautiful areas on the coast that haven't been so developed yet, like Balchik and Biala, where the forests go all the way down to the sea.

What is the most important advice you can give?

Get an independent solicitor - we always tell our clients this. Also we encourage people to go and see other estate agents, see what they're offering, and to talk to the seller of the property. This way everything is in the open, and the customer can feel assured that there aren't any shady deals going on behind their back. Honesty is good for our business. I think some estate agents have been too greedy and have tried to make lots of money fast instead of looking at the long-term picture.