Blagoevgrad is one of the most attractive municipal centres for those who want to invest in residential developments.

There are three factors that make a significant impact on real estate, property pundits say. The first is location, the second is location, and the third is location. If classified in light of this theory, Blagoevgrad, Bulgaria, appears to be a precious jewel.

This town of 100 000 is at the foot of Rila Mountain, only 101km south of the capital city Sofia and close to Bulgaria's borders with Greece, Macedonia, and Serbia. European route E79, and a railway line connecting Central Europe and Greece, are key thoroughfares that pass by Gorna Djoumaya (the former name of Blagoevgrad).

The town is the administrative centre of southwestern Bulgaria, an area that includes 14 municipalities. The easy access from the capital city and the proximity to some of Bulgaria's most popular resorts (winter, summer, and spa) contribute to its attractiveness. Predel locality, on the border of Rila and Pirin mountains, is only an hour's drive from Blagoevgrad. And the close proximity of Bansko, Rarzlog, and Dobrinishte offers residents and visitors plenty of hotels, ski runs, balneotherapy options, and charming and upscale eateries.

Accessible from Blagoevgrad are the picturesque Kresna Gorge running along the Strouma River, the renowned Sandanski spa resort, the Nevrokopski district, and the Rhodopes that offer the authentic spirit of villages such as the 18th-century Kovachevitsa and Leshten settlements.

Blagoevgrad's mild climate and student population---thanks to Neofit Rilski South-West University and the American University---add another facet to Blagoevgrad's charm. The large number of cafes, pubs, bars, and restaurants are another asset of the city. And the large number of young people in the city makes for a rich nightlife.

Visitors are fascinated by the Bulgarian Renaissance architecture of the Varosha neighbourhood, reachable via the Lovers' Bridge, one of the many beautiful bridges spanning Blagoevdradska Bistritsa River, which runs through the city centre.

Arts and culture aficionados can enjoy Blagoevgrad's world-famous folk music and dance ensemble, Pirin. Performances are held in the local chamber opera hall or the Blagoevgrad Drama Theatre. The city has many art galleries and is a venue for a number of festivals, such as Euroart, Uniartfilmfest, Slunchogled (Sunnyflower), and Macedonia Folk.

The town boasts a modern aquapark, located near the mineral water indoor pool; a refurbished sports complex named Pirin; and the Skaptopara Sports Hall, recently opened in the West neighbourhood, seating 1000 people and compliant with the requirements for hosting international events. And Blagoevgrad is known throughout Europe and the Middle East for its Blagoevgrad-BT tobacco and Pirin beer.

The favourable natural setting and the rapid pace of growth of the administrative centre have recently attracted considerable national and foreign investment. The town's old market was retrofitted as a modern business centre in 2004.

Currently, Blagoevgrad is home to four hypermarkets: Metro Cash and Carry, Technopolis, Technomarket, Europa, and Mr. Bricolage. The first city mall, Mall of Blagoevgrad, opened in full swing this year. Blagoevgrad is awaiting the construction of its first Kaufland unit, which is presently being constructed on the site of the old sports hall. The city will have an elaborate Zoning Plan drafted by mid-2008.

Suburban development
There are 22 villages near Blagoevgrad, most of which have already transformed into holiday compounds for Blagoevgrad's citizens, because they are only a five- to ten-minute drive from town and are attractive for their natural beauty and fresh air. These nearby villages offer many plots, with houses and yards, for about 20 000 euro. They can be turned into second homes or even first ones since they are so close to the city centre.

Investors usually prefer the villages of Riltsi (already known as the millionaires' village), Izgrev (30 minutes walking distance from Blagoevgrad's centre), and Elenovo (which has almost merged with the city). Single-family houses with different amenities are mushrooming in these places. Currently, plots in Izgrev sell at about 25 to 26 euro a sq m. Buying land with a view to subsequent building has proven to be the most lucrative alternative.

Industrial areas
A new commercial-industrial area is being developed along the Pokrovnik-bound road. Current asking prices for plots there are as much as 22 euro a sq m. Land near Metro hypermarket sells at 40 euro a sq m. There is a 2.8 decare field that adjoins the road across from the Metro outlet and is offered at 18 euro a sq m.

Urban development
Blagoevgrad's centre has a number of modern buildings, featuring all high-end facilities, which any contemporary business headquarters might need. Construction work on the site of the former summer cinema is still underway and the future residential and office units, each with an area of 55 to 120 sq m, sell off-plan at 900 euro a sq m.

Blagoevgrad is one of the most attractive municipal centres for those who want to invest in residential developments. That accounts for the recent price hike of 100 to 150 euro a sq m. The figures speak for themselves.

The most actively sought locations are broad centre, Balarbashi, and Osvobojdenie. The preferred flats are one- and two-bedrooms with an area between 50 and 72 sq m.

Ready apartments in the centre command prices of 600 to 1000 euro a sq m.
Old buildings and pre-fabs in residential districts are also attractive because they have undergone infrastructure improvements. Kostadin Paskalev, the newly elected mayor and a former regional development and public works minister and deputy prime minister, has already worked out a programme in this direction, which will be implemented using European Union funds.

Blagoevgrad's clean environment, due to the lack of heavy industry, is attractive for investment in residential and holiday property construction. There are many green areas and places for recreation in the city. The Varosha Architectural Reserve, Loven Dom (Hunter's House) Park---which is only five minutes from the centre---the zoo park, the rosary, and the observatory are among places worth visiting.

The past few years have seen a surge in hotel construction. It has not reached the point of saturation because the future growth of winter tourism has not yet exhausted its potential.

Local architects see two possible paths for future growth and development of the town: towards Balarbashi and towards Elenovo. There is also another - in the direction of Rila Mountain. The intensive progress of Plazha district, growing along Blagoevgradska Bistritsa River towards Bachinovo locality and Bodrost resort, promotes this third option.

Some entrepreneurial residents of Blagoevgrad are already buying plots in these two regions, intending to build them up in expectation of ski-centre Kartala's launch and the development of the Bodrodst tourist compound infrastructure. It remains to be seen whether Blagoevgrad's pristine environment can be preserved in the face of such demand.