The latest News from Bansko
I have spent a week in Bansko looking around talking to people and photographing developments. The situation in Bansko can be only described as tragic. There are hundreds of partly finished developments with no chance of ever being completed. Put simply my view is; if your development is in the Bansko area and is not finished with act 16 now then it never will be.
I saw active construction on ONLY ONE development in Bansko and that was Villa Verde. In Razlog again the same picture there was only active construction on one development which I have yet to find out the name of.
Do you know the name of this development? TIt was the only site with active construction in Razlog.
In Banya just out of Bansko there was active construction on the Pirinea resort project.
Remember that summer is the construction season in Bansko, this lack of activity is a very ominous sign for many investors.
Now here’s the maths behind what I am saying.
A developer will finance a development partly with their own funds, partly with borrowed funds from a bank, and partly with income generated through the sale of OFF PLAN units.
Almost all developments are dependent on the sale of apartments to generate income to complete the project. That’s why they sell off plan before construction has even started.
Now your problem is that people are not buying off plan any more and so there is no money to finish the developments.
Here’s the catch:
THERE ARE NO OFF PLAN SALES.
Every Real Estate Agent and developer that I have spoken to in Bulgaria has told me the same thing. There is NO market for off plan apartments. Every apartment sold in Bulgaria nowadays is finished with act 16. In Bansko almost all of the Real Estate Agents are gone, I found one that was open and they told me “All of our sales are re-sells of completed apartments with act 16”
WHY ARE THERE NO OFF PLAN SALES?
1. There are no mortgages. Nowadays it is impossible to get a mortgage in Bulgaria even Bulgarians can’t get them.
2. The holiday apartment market is completely saturated.
No mortgages = no sales, and no sales = no money for developers to complete their developments.
If you think I’m wrong ask yourself this question. Where is the developer going to get the money from to finish the development?
I have uploaded up to date photographs of developments in Bansko in the members area of the BPAG site. Please look at them and see if you can help with the naming of those called unknown, and PLEASE if I have the wrong name on a development let me know. (I have asked my web developer to put these albums in alphabetcal order but aploolgise as he has not get done it)
What to do now:
If your development is not finished then you have to start thinking about the possibility that it will never be finished.
Your choices:
1. Wait and see if the development will finish one day..... maybe..... hopefully....
2. Get a rescue package. There is information about rescue packages in the members section of the BPAG site or email us
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