Bulgarian property investors hit the slopes

Those seeking to invest in buy-to-let property in Bulgaria could do worse than head to the mountains, a new report finds.

Assetz, a leading UK property investment specialist, reveals today that ski resorts offer year-round rentals and up to 12 per cent in yields, around twice the returns available in the coastal resorts.

"Prime skiing locations such as Bansko have strong long-term investment prospects, with the likelihood of securing guaranteed rental schemes with leading holiday companies who already operate in the area," said Peter Holden, UK and international investment manager for Assetz.

"Yields are essential for any Bulgarian investor, since capital gains of 20 per cent last year may not continue to grow at such as rate if entry to the EU in 2007 fails."

But the property investment firm warned that Bulgarian market still represents a speculative investment.

With membership to the EU in 2007 still uncertain, an immature property market driven by investors means there is no guaranteed resale market, Assetz warns.

However, some of the lowest house prices in Europe and a booming growing tourist market make Bulgaria a favourite for long-term investors.

Mr Holden added: "Generally, investors should be aware of the apparently 'bargain' deals in Bulgaria citing properties for under €30,000, which are likely to be located in the more rural areas and are will not enjoy such high growth rates and rental yields. At Sunny Beach and other coastal areas, a property that is not right on the beachfront will not currently make a viable rental prospect.

"All investors should be aware that Bulgaria is still a speculative market, therefore those looking for a quick fix to a pension shortfall would be better off looking to more established markets such as France or Spain."