The big debate: holiday properties: four walls and something else

What were a hundred and forty Irish people thinking of when they got off the plane at the airport in Burgas in the winter of 2004? About the summer, of course, and about money.  
Apart from the Irish, many other investors came to Bulgaria attracted by the promises for cheap holidays and lucrative investments. Now it is only the promise for cheap holidays left.  
Buyers, too, have changed and the British were replaced by Russians, who could buy real estate because they acquired capital through selling oil and metal during the economic boom. Now, the British don’t want to run into debtsand the Russians have come up against diminishing incomes resulting from low prices of raw materials. The effect - sales in resorts have declined. Developers don’t have much time to maneuver – there are no new markets. Besides, they have already heavily invested in land and construction. The only option they have is to get down to remodeling every single project and the entire sector as well. Those, who, until recently were selling their buildings and complexes will have to start promoting services and adventure.


’Index Imoti’ consulted executive and marketing directors of construction and development companiesthat are either operating or intend to operate in the coming years. Here is the answer to the question: "What should be done?"

Quality, quality, quality...


When a country runs into competition with its neighbors, the only way to take advantage of its proximity to various markets is to make clients believe that the products offered are no worse than the products of your competitors. Otherwise, customers would rather reconcile with longer travel time, especially if they get their own home for quite some time.
The bad thing about Bulgaria’s popularity in Britain is that the country appeared on the pages of some newspapers, which told stories of broken promises and uncompleted projects. Now developers realize that there is no place for compromising.

From homes to tourism

 

The second aspect of quality relates to the operation of homes. The market forced developers to move from developing and selling residential complexes to creating and selling tourism products.  

An alternative


Another option which could deal with the issue is the transformation of apartments and hotel complexes into dwellings for employees, hospitals and social buildings, i.e. buildings of special functions. However, this will require some considerable capital – an obstacle now that investors are faced with serious financial problems.  
Whether the change will involve some of the above mentioned methods or some innovative ones, it is undisputable that a change is required. And when this policy is properly applied to projects, it will turn out that the market has moved a step forward and has become more competitive.

"Imagine Sunny Beach in ten years. Apart from the luxury hotels and apartments located on the beach line, the buildings and complexes behind will be turned into business and shopping centers. The resort of St. Vlas will offer apartments and complexes to employees at the business centers. The Burgas Airport will operate at full capacity, while people will enjoy Sunny Beach all year round. This might not be the new Costa del Sol, but rather Miami. Why not?"
Today, the words of Yulian Georgiev, a real estate agent and developer, might cause some smiles. However, the question isn’t whether Sunny beach will resemble Costa del Sol or Miami, but whether the sector will become an economy driver, or will remain a source of uncertainty.