Sep 09, 2010
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Aug 15, 2006: In Bulgaria’s Future: Clubs, Caddies and Golf Carts
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Aug 15, 2006:
In Bulgaria’s Future: Clubs, Caddies and Golf Carts
SOFIA, Bulgaria — Golf is not ? favorite pastime here. Bulgaria, one ?f th? poorest ?f th? former Soviet bloc countries in Europe, never developed ? tradition ?f playing and has just three golf courses.
But ?s th? country has become one ?f th? Continent’s hottest second-home markets, all th?t is ?b?ut t? change.
Six golf resorts ?r? being built with courses b? internationally known designers, including two b? Gary Player and one b? Nicklaus Design, ? firm owned b? Jack Nicklaus. Three ?f th? courses ?r? ?n th? Black Sea coast, two near th? ski resorts ?f Bansko and Borovets and th? sixth near th? capital, Sofia.
Ten other courses also ?r? being planned across th? country, most with residential components, but more focused ?n th? domestic market.
‘‘Real estate is not just property with ? good location,’’ said Tzvety Lazarov, project director f?r th? Ibar Country Golf Club & Spa, which will have ? course designed b? Nicklaus Design. ‘‘You must tie it t? some value-added service’’ like golf, he said.
Overall, real estate is one ?f th? fastest growing sectors in th? national economy, which grew b? 5.5 percent in 2005. Foreigners were involved in 23 percent ?f th? 220,000 property deals registered in Bulgaria in 2005, transactions th?t totaled more than 4 billion euros, ?r $5 billion, according t? th? National Real Property Association ?f Bulgaria. th? year before they generated 18 percent ?f all sales, ?r 3.36 billion euros.
Much ?f th? interest is linked t? th? country’s expected entry into th? European Union in January. With sale prices in Sofia still averaging only $66 per square foot, construction costs, sales prices and incomes ?r? all expected t? jump after membership, fueling ? ‘‘now ?r never’’’ air ?f urgency among citizens and foreigners alike. th? first portion ?f th? Ibar project is expected t? b? finished in January, and 25 percent ?f th? villas already have been sold, with prices ranging fr?m 120,000 t? 200,000 euros, ?r $152,000 t? $254,000. ?s in most golf developments in Bulgaria, Mr. Lazarov said, almost all th? buyers ?r? British and Irish. ‘‘They ?r? ?b?ut 60-40 mixed between investors and golfers. I think in th? future it will reverse and there will b? more golfers,’’ he said, ?s golfers ?r? less comfortable than investors with th? practice ?f buying properties before they ?r? completed.
There ?r? no direct flights fr?m New York t? Sofia, but th? Bulgarian capital is just ? short flight London, Paris ?r Vienna.
Michael Lenihan, publisher ?f Golf Management Europe magazine, said, ‘‘I think ? lot ?f people ?r? looking ?t places like Bulgaria and th? Czech Republic f?r ? way t? make ? quick killing and I’m not so sure it’s going t? b? sustainable long term.’’
With th? spread ?f cheap air travel throughout Europe, these high-profile Bulgarian golf developments will not b? competing with each other, but with golf property destinations in th? Mediterranean and Europe in general, said Andrea Sartori, head ?f th? Travel, Leisure and Tourism Group f?r Central and Eastern Europe ?t KPMG, ? global firm th?t provides tax, audit and advisory services.
One ?f th? largest projects here is th? Thracian Cliffs Golf & Spa Resort, ? $152 million development ?n th? Black Sea. It will have its own marina village, ? mineral spa, 400 hotel units and 717 apartments, villas and townhouses. ?b?ut 65 ?f th? 300 apartments ?n sale already were sold, f?r 1,900 euros per square meter, ?r ?b?ut $177 per square foot.
There also is ?n annual maintenance fee ?f 1,600 euros, ?r ?b?ut $2,000.
Thracian Cliffs will restrict course memberships t? residents. Initial buyers receive 20-year memberships ?t no charge; lifetime memberships, f?r 40,000 euros, ?r $50,000, have no greens fees.
Stella Rizova, th? marketing director, said buyers have been mainly Britons, ?s well ?s Russians and other Europeans.
She said th? the marketing strategy will include going after Britons wh? ?r? selling their properties along th? Costa Del Sol in Spain and looking elsewhere f?r cheaper homes. Overall, prices in Bulgaria ?r? ?b?ut one-third ?f those in Spain she said.
Kancho Stoychev, co-owner ?f Black Sea Rama, another Gary Player course, less than 13 miles fr?m Thracian Cliffs, said his $131 million development is aiming f?r th? international golf traveler, significantly upmarket fr?m th? discount package tourist wh? made Bulgaria famous even during its Communist days. ?f th? 30 villas f?r sale, ?b?ut 20 have been sold, starting ?t ? little more than 220,000 euros, ?r $280,000. th? standard two-bedroom apartments ?n th? Black Sea th?t have boosted Bulgaria’s ranking in th? second-home market usually sell f?r around 50,000 euros, ?r $65,000.
Mr. Stoychev also is vice president ?f th? Bulgarian Golf Association, which is trying t? popularize th? game. He expects golf t? become more popular ?s Bulgaria becomes ? more prosperous country.
‘‘If you don’t have ? supply ?f golf courses, you can’t create ? golf market,’’ said Mr. Sartori ?f KPMG. ‘‘There is not ? market because there ?r? no golf courses, it’s ? Catch-22 situation.’’
‘‘Nowadays you have more than 52 golf courses and 24,000 golfers in th? Czech Republic, while in 1990 I think there were 3 courses,’’ he said. ‘‘Demand helped t? grow th? supply, but supply also helped t? grow th? demand.’’
www.nytimes.com
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