Overseas - October, 2006

From the Med to the Far East

With the domestic property market so lacking in supply, buyers – from first-timers to investors - are increasingly turning to foreign destinations. And the most popular countries for property purchase constitute a mix of old favourites and exotic newly opened locales.
According to Foreign Currency Exchange (FCExchange) the most popular place for Britons to buy a second home is Cyprus. Over half (56 percent) of their private clients this year have contacted them in order to allow them to buy on this beautiful Mediterranean isle.
Ownership of foreign property itself has been boosted by increasing low-cost air travel options and the transformation of many former Communist countries into fully fledged or aspiring EU members. Even further afield, such heretofore no-buy areas such as China are now actively encouraging foreigners to own property there.

Nick Fullerton, a spokesperson from FCExchange, said, ‘Getting the funds to buy a property abroad is the main reason most of our private clients contact us. We have definietly seen a marked increase in the number of individuals, as opposed to companies, contacting us over the summer months.’
In addition to the lack of housing stock on the open market, a major reason for the popularity of buying abroad is the fact that purchasers can get more space for their money. Research by FCExchange reveals that more than 1.1 million British people own a second property, many of which are abroad. It is not just the sun, sea and sand that is pulling Brits to foreign shores, it is the knowledge that buyers are likely to get more space for their money than they would in the UK.

Buyers are becoming more savvy as ownership of foreign property becomes more mainstream. However, it anyone contemplating such a purchase should bear in mind some basic advice, says Fullerton. ‘When buying abroad there are some signs to look out for to know whether the area is likely to appreciate. Look out for small independent restaurants, cafés, shops and even estate agents as these often indicate the arrival of new and affluent locals. Be wary of large chain restaurants and stores as they normally indicate that an area has completed its boom period. And speak to other Brits who have bought in the area because they will know the pitfalls and are more likely to tell you than the locals.’
Meanwhile, many are casting a glance towards the East. If Dubai currently has 15 to 20 per cent of the world’s cranes, as the received wisdom has it, the rest are in Shanghai, where the building boom is nothing short of breathtaking.

Word has it that London’s bankers and entrepreneurs are investing their personal wealth in China’s second city. And within Shanghai, much of the City money is going to purchase property in the Chinese version of the Square Mile, the rapidly growing financial district. Pudong, besides being a centre of wealth creation, is now also the fastest growing and most popular residential area of Shanghai.
In three months recently, UK and Irish investors privately bought 160 apartments in one development – Times Square, Pudong - and there are waiting lists for future opportunities in this and the Dynamic Crystal apartments.

Dominic Keogh is the London managing director of Shanghai Vision, which sold the Times Square properties. He explains, ‘Over the next three years, up to 63 per cent of the new office space in Shanghai will be located in Pudong. This includes Shanghai’s World Financial Centre, twice the size of Canary Wharf. International corporations such as CitiBank, General Motors and Philips are relocating their Asia-Pacific headquarters from Hong Kong to Shanghai.’
London investors have learnt from the success of Docklands’ residential market that many City workers like to live close to the office, says Keogh. ‘The rate of sale has been remarkable. We sold the first 40 apartments, for between £70,000 and £115,000 each, in the Times Square development in Pudong in just three days. Twenty went to buyers who had previously bought property from us, including one buyer who bought six.

‘Soon after we sold another 60 in about a week. A few weeks later we sold another 60. In total we sold 160 apartments in Pudong in five weeks of selling during the late spring and summer.
Just over a third of these purchases have been personal investments by investment bankers based in the City of London, he says, while roughly the same percentage has been bought by professional personal investors, particularly property investors. ‘The rest have been bought by a wide variety of individuals looking for an investment opportunity. They range from civil servants to estate agents – I bought one myself!’

He offers interested parties a free copy of A Buyer’s Guide to Shanghai Residential Property. Simply telephone Dominic Keogh on 020 7038 1265 or visit shanghaiinvestment.co.uk.

We take a look at Bulgaria’s place of pampering

Ever heard of Sandanski? Well, anyone interested in vacationing in Bulgaria certainly should. This charming little town has been known for a long time by Bulgarians for its warm, sunny weather and the therapeutic virtues of its air and mineral waters.

Under communism, sanatoriums offered a wide range of treatments for asthma and other respiratory diseases. Since the beginning of the 1990s, Greeks have also discovered Sandanski, which happens to lie just over the border, and have been visiting it in large numbers. Even though it is surrounded by mountains, Sandanski has a certain smoothness in the air, a certain nonchalance in the atmosphere, in short a distinctive Mediterranean flair. On a summer night, it seems like the whole town is busy leisurely strolling on the main pedestrian promenade, enjoying cafes and restaurants, and relaxing by the pervasive, sweet sound of water.

And indeed water seems to be everywhere: from the stream that happily cascades down the beautiful public garden, to the many fountains, pools and spas, it offers a sense of harmony and peacefulness.

Still the city takes its name after a revolutionary, a hero of the fight for Macedonian independence against the Turks on the eve of the 20th century. Yane Sandanski was assassinated in 1915 and was buried close to the Rozhen monastery, where he had found shelter. His tomb lays in the stunning landscape surrounding the monastery – a jewel in itself.

For Sandanski is enshrined in beauty, at the foot of the Pirin mountain, and offers endless opportunities for nature and hiking lovers. In the winter, it is one hour away from the ski resort of Bansko. It is also close to Melnik, undoubtedly one of the most beautiful villages in Bulgaria, also famous for its wineries and for the uniqueness of its natural settings (the ‘pyramids’).

It is no wonder then that former communist dictator Todor Jivkov had one of his residences built in Sandanski. After the fall of communism, the residence was converted into a hotel and christened Sveti Vlas. However, it still hosts a makeshift museum of communism, an unexpected reminder of its former tenant. The hotel overlooks the city from a distance. Its architecture is more interesting as a testimony to the style of the 60s, than actually beautiful. But the vast surrounding park is certainly worth visiting, especially in the spring.

Todor Jivkov had an improbable neighbor in the person of Baba Vanga. Baba Vanga lived in a nearby place called Rupite and received numerous visitors attracted by her reputation as a saint, a healer and a clairvoyant. A church has been built to honor her memory – she died in the middle of the 90s - and hot springs abound freely about. Sandanski, the peaceful little town named after a revolutionary, was thus lying at the crossroads between a dictator and a saint.

There is a certain magic in Sandanski, probably due to the combination of natural beauty, soothing waters and mild climate – it is known to be the sunniest and warmest town in Bulgaria. It may also be the best spa city in the country. It has, until recently, been relatively spared by the construction boom - but times change: Emiratis and Britons seem to be more and more attracted by its spas, and new hotels are being built. Whether you are interested in vacationing or investing, now is the time in Sandanski.  

 

 

  

 

Overseas investors will be very interested in last week’s announcement by the European Commission that Bulgaria, along with Romania, is set to join the EU family on 1 January 2007. This is the news that the Bulgarian property community has been waiting for, having as it does a deep significance regarding a range of issues, from monetary policy to the future of the housing market.

Bulgarian prime minister Sergei Stanishev called the move ‘the genuine and final fall of the Berlin Wall for Bulgaria’, while those in the business of selling the country as a holiday and investment destination were also elated.
Bulgarian property has been popular with UK overseas buyers for several years, due to the opening up of low-cost air routes, inexpensive property prices and natural assets of the country such as mountains and coastline. This popularity is set to grow with EU accession, says
Pelle Langli, chief executive officer of Emerging Real Estate Ltd. The EU announcement, he says, is ‘great news. It's been a widely accepted prediction for sometime and one that we as a company had believed would definitely happen.’
Langli points to the vast improvements in infrastructure over the last few years, and calls the upcoming accession ‘a real testament to all of these efforts and the recognition it fully deserves. One key achievement is the economy which has never been as strong, thanks to an all-time low unemployment rate and a stable inflation. All of this, coupled with a general increase in wealth, means Bulgaria is now an even better opportunity for investors. Of course there is still room for improvement but I fully believe the Bulgarian people and authorities will get there.’

Sonny Gowans, CEO of Global Spaces, a London-based international selling agent for The Black Sea Property Fund, which is investing in a number of new build residential developments in the region, says, ‘This week’s announcement by the commission was a truly historic moment for Bulgaria. [It] is set to open the floodgates for yet more external property investment as investor confidence grows, with the UK being a major contributor.’
It is estimated that Bulgaria will receive over €12 billion from European funds between 2007 and 2014. Much of this investment by the EU will go towards further infrastructure improvements in the country.
Gowans believes that those who want to see what EU membership will do for Bulgaria’s property market should look to the example of other countries who have joined. ‘In Ireland, for example, property prices have more than doubled over the past four years. Part of the reason for this is not just the economic prosperity caused by allocation of EU funds, but consumer confidence generated as a result.’
Global Spaces is currently marketing four schemes in Bulgaria. Magnolia is a luxury residential ski and spa development of 420 apartments in the ski resort of Pamporovo, while Oasis, Nikea Park and South Beach are located along the Black Sea Coast.
For more information on the above schemes call Global Spaces on 0845 450 4750 or see globalspaces.com.

Bansko, one of the most dynamic and fastest growing ski resorts in the world, has just seen the launch of St George Ski and Spa, an ultra-modern and exclusive development situated in the pretty old town. Located opposite the ancient roman baths and the source of natural thermal water springs, the development is due for completion in December 2008 and is being offered for sale through Emerging Real Estate.

The apartments in this five-star development, which range from studios to three-bedroom properties, will boast first class fixtures and fittings including luxury flooring options, solid wooden doors and fireplaces. These properties are set within professionally landscaped gardens, and the development will boast an amazing spa covering an area of some 1,000 sq m – it will be one of the biggest and most indulgent relaxation centres in Bansko. Residents and guests will be able to enjoy-year round swimming in the state-of-the-art pool with its retractable glass roof, and there will also be a gym and games hall. In the summer, the gardens will be the ideal sunbathing spot in which to enjoy the panoramic views over the three mountains of Rila, Pirin and Rhodopi.
Other on-site facilities include ski equipment and wardrobe hire, a ski school and shuttle bus as well as a two-level lobby bar, a licensed restaurant, a choice of shops and childcare services.
St George Ski and Spa is perfectly placed to access the 65 kilometres of marked ski runs which have a guaranteed season from mid December to May, due to the resort’s numerous snow cannons. It has also been announced that the runs will be extended to 200 kilometers over the next few years.

In the summer, there is an abundance of outdoor activities with hiking, mountain biking, horse riding and white water rafting all close to the beautiful Pirin National Park. There’s also an Ian Woosnam golf course under construction 3km away.
The Mayor of Bansko has recently announced plans for a new airport which will make the resort event more accessible to holidaymakers. The town is situated just 160km from the main airport in the capital city Sofia, which offers direct flights to the UK.
With this year-round appeal, all apartments in the development have the option of management contracts with a franchise of a chain of internationally renowned boutique hotels. With properties starting at just £32,000, strong interest from potential buyers is expected. As most buyers will purchase off plan, a simple payment schedule is available which spreads the cost from initial reservation to the completion date - purchasing this way can also maximise yields.

For further information on St George Ski and Spa contact Emerging Real Estate on 0845 601 7293 or visit emergingrealestate.com.