News

New Bulgarian regulations allow purchase of property without company

Ivan Radford — Mon, 14 May 2012 11:32:00 GMT

New regulations in Bulgaria's property market allow foreign buyers to purchase real estate without having to register a company first.

The conditions officially changed at the beginning of 2012, when The Treaty of Accession of Bulgaria to the EU removed its support for the restrictions, but effectively came into practice in the second half of April, allowing all EU citizens to buy land in Bulgaria in their own name.

Investment in agricultural land and forests will still require a registered Bulgarian company until the beginning of 2014, when this restriction is also set to expire. The restrictions will remain in place for any investors outside of the EU or European Economic Area (EEA).

Polina Stoykova, Chief Operations Manage of Bulgarian Properties, hails the new regulations as a big step for the market: "This is a major change and liberalization of the Bulgarian real estate market. It comes in combination with lower property prices, which have dropped with around 50% since the beginning of the crisis. These factors will contribute for a greater demand for properties by foreign European buyers. These factors will contribute for a greater demand for properties by foreign European buyers."

Looking to buy Bulgarian property?

http://bulgaria.themovechannel.com/property/all

Forget Spain: Go to Romania, say experts

Ivan Radford — Wed, 09 May 2012 11:36:00 GMT

Investors are tipped to try Romania instead of Spain this year by property experts.

Schoenherr Lawyers highlighted less established markets, including Bulgaria and Romania, at the IPD/Property Investor Europe Central and Eastern Europe Conference last week, noting that banks have large real estate portfolios to sell.

Prices will fall, predicted the lawyers, making the Romanian market more attractive to Western Europe's more familiar alternatives.

"It's going to be very dynamic and volatile, a very exciting investor atmosphere," partner Denise Hamer commented.

Office properties in Bucharest were also highlighted by an Austrian firm, reports Property Showrooms, following high demand for a new shopping mall in Ploisesti announced last month.

Bulgaria's frozen market will "thaw by 2013"

Ivan Radford — Tue, 08 May 2012 12:32:00 GMT

Bulgaria's frozen property market is predicted to thaw by 2013.

Europe's 14^th largest country saw interest from international buyers increase as prices dipped and tourist appeal remained strong, but the market has since lost popularity, according to TheMoveChannel.com's Top of the Props, while construction of residential complexes has been non-existent in the last two years.

Indeed, office vacancies are at 25.4 per cent and "high-end residential is 18 per cent vacant", reports the World Property Channel.

But recent reports have suggested that the market is possibly starting to recover. Colliers found that investment transactions at the end of 2011 totalled €186 million; the highest level since 2008, although the large-scale selling off of Sofia's mall accounted for a large proportion of that figure.

Meanwhile, price decreases have begun to slow down, with apartments posting the smallest drop since the beginning of the crisis in the first quarter of 2012.

"More and more property sellers and buyers are managing to overcome the crisis mindset that had overtaken the market in the last few years and they are adapting to the new reality," Polina Stoykova, Chief Operations Manager of Bulgarian Properties, told TheMoveChannel.com last week.

Bulgaria plans to focus on "alternative tourism"

Ivan Radford — Thu, 03 May 2012 12:36:00 GMT

Bulgaria will focus on "alternative forms of tourism" this year.

Speaking at the beginning of this week, the Minister of Economy, Energy and Tourism Delyan Dobrev stated that although mass tourism was still a priority, Bulgaria's tourist industry would start to target more specialised sectors, including wine, religious, historical and agricultural tourism.

The revised approach follows the relocation of the country's Tourism Unit away from the capital Sofia to Bulgaria's second-largest city, Plovdiv.

"We reckon that a high priority should be set on alternative forms of tourism and specialized tourism," Dobrev commented, adding: "Plovdiv is the heart of Bulgaria's alternative tourism."

Source: Novinite.com

Bulgaria apartments see smallest price drop since crisis began

Ivan Radford — Thu, 26 Apr 2012 10:20:00 GMT

Bulgarian apartment prices fell by 0.4 per cent from the previous quarter in the first three months of 2012, according to the Bulgarian National Statistical Institute, the smallest decrease in prices since the beginning of the crisis.

Vratsa and Vidin recorded the biggest drops in prices, of 4.42 per cent and 3.23 per cent respectively, but prices in some regional cities, such as Sofia, saw prices rise by 0.83 per cent, while values in some towns stayed the same.

On a year-to-year basis, average prices of apartments have fallen by 6 per cent, but some agents welcome the data as part of a slowdown in decreasing prices. Bulgarian Properties' recent report found that in the first quarter of 2012 the number of sales remained similar to the same period in 2011, describing the figures as "positive news on the background of an uncertain economic recovery".

"At present the real estate market in Bulgaria is calm, prices have reached a balance and have remained more or less the same in the last six months while property supply is high-quality and diverse," comments Chief Operations Manager Polina Stoykova.

"The market at the moment provides very good conditions for striking a bargain deal. More and more property sellers and buyers are managing to overcome the crisis mindset that had overtaken the market in the last few years and they are adapting to the new reality."

Is stability coming back to Bulgaria?

Ivan Radford — Tue, 10 Apr 2012 12:12:00 GMT

Stability is coming back to Bulgaria's property market, two realtors have declared.

Bulgarian real estate has suffered considerably in the last five years, but new reports from two local professionals have suggested that the market is finally bottoming out.

The number of property transactions last year rose by 22 per cent compared to 2010, Yavlena announced last week. The majority of these involved agricultural land and the consultancy firm's share of Bulgaria's total number of sales has dropped to 15 per cent, but Yavlena's figures still show a significant decrease in demand for apartments in the mid- and high-price range.

House prices also declined while buyers remain more cautious than in previous years, but there are positive signs to be found in the company's report: the drop in real estate values is now slowing up, according to the Sofia Echo, while "the decrease in the annualised interest rate charged by banks for mortgages [in Bulgarian lev] were on the same level as interest rates on mortgages in Euro".

The newspaper also highlighted a report from Bulgarian Properties, which observed that house prices across the country had stabilised along with the number of property sales. With low prices attracting overseas investors to winter and seaside resorts, Bulgarian Properties note that Russian and Bulgarian buyers now dominate the investment market, helping to bring stability back to the country.

Bulgaria property owners hit by price hike

admin — Wed, 04 Apr 2012 09:28:00 GMT

Consumer prices of hot water, heating, and natural gas are going up in Bulgaria effective last Sunday.

Despite the reached agreement with Russia's Gazprom for an 11% natural gas discount for Bulgaria, Bulgargaz is going to sell products to end consumers with higher prices than the first quarter of 2011.

Prices of natural gas which are the base of heating and hot water prices are determined each quarter by the State watchdog - the State Commission for Energy and Water Regulation, DKEVR. These prices are different for different cities, but for all there is a price hike effective Sunday. The cities of Shumen, Plovdiv and Sofia and the town of Kazanlak are among the record breakers.

In the second quarter, Bulgargaz will sell to heating utilities natural gas for a price 13% higher compared to the first quarter, which is the reason for the new steep consumer prices. Bulgargaz even asked DKEVR for an increase of 26%, grounding it on the worsening finances of the company over uncollected payments, but it was rejected.

Bulgargaz purchases Russian "blue fuel," however the 11% discount on the part ofGazprom, which was negotiated Friday by the Bulgarian delegation in Moscow, is not yet going to be felt by consumers. This could happen no earlier than the third quarter i.e. July 1, 2012.

Source: Novinite

Miami, London and Vancouver 'in demand'

Ivan Radford — Thu, 29 Mar 2012 12:55:00 GMT

The gap in annual price growth between the best and worst performing luxury residential markets was 45% in 2011, according to the results of the Knight Frank Prime International Residential Index (PIRI).

The majority of locations covered in the survey saw flat or falling prices and, ironically, some of the largest price drops were in areas with the strongest economic growth.

Emerging markets influenced performance far and wide, with wealth flows to the developed world's property hotspots driving growth in Miami, London and Vancouver. Meanwhile, price falls in some of Europe's luxury markets point to the ongoing impact of the global financial crisis; similar falls in Singapore, Sydney and Shanghai confirm the unravelling of price booms in Asia.

As wealth creation and luxury property markets become ever more global, so the issues of exchange rate volatility, political risk and security concerns rise in importance for HNWIs, competing with more prosaic motives such as investment and lifestyle. This has led to the concept of the safe haven location.

Of all the luxury market trends that have played out since the launch of Knight Frank's Wealth Report five years ago, it is the growth of global wealth flows that has done most to shape the leading prime markets.

When asked which nationalities will become most important as prime property buyers over the next five years, Chinese, Russian, Middle Eastern, Latin American and those from other growth economies consistently top advisors' lists.

Nairobi tops the index with annual price growth of 25% followed by the Kenyan cost, up 20%. Miami is close behind on 19.1% followed by Bali at 15%, Jakarta at 14.3% and London at 12.1% then Vancouver at 10.4%. Among the biggest losers in the price stakes are Mumbai, down 18.1%, Monaco, Mallorca and the Dordogne in France, all down 10%, and Sydney down 8%.

Wealthy buyers rate personal security and safety as the top consideration when it comes to buying a property with 63% citing this reason first. That is followed by 60% seeking economic openess and 51% wanting social stability. Other influencing factors include excellent education systems, easy access to other cities, healthcare and transport facilities. T

he United States is the most popular location for wealthy buyers followed by the UK and then France, Spain and Singapore.

Source: PropertyWire

Bulgaria battles rogue agents

Ivan Radford — Thu, 29 Mar 2012 12:19:00 GMT

Bulgaria's real estate brokerage business is set for a cleanup, with plans to table legislation in Parliament later in 2012 to professionalise the business and drive out rogues and rip-off artists from its ranks.

Currently, the property business in Bulgaria is in the doldrums, a sharp contrast to the heady days of the real estate boom of a few years back - a boom that led a number of unscrupulous operators to seek to take advantage, especially because of the unregulated nature of the business.

The new bill envisages the setting up of a professional association of realtors, along the lines of such associations in other countries which seek to ensure proper professional standards in the real estate business, and to establish a public register of companies and individuals in the real estate sector.

Television station bTV quoted Vassil Lazov, a dissatisfied client in a real estate transaction, as saying that in many cases where customers had received bad service, it was because the real estate agent had behaved inappropriately or was incompetent.

Lazov said that he had bought a plot in the Lyulin residential area of Sofia and had been promised that he would receive the title deed after a month - but instead got it after more than a year and a half.

The Real Estate National Association said that the bill would provide for the introduction of mandatory requirements for qualifications to become real estate agents and brokers.

Businesses in the sector should have legal and financial standing and professional liability insurance so that, in the event of serious negative consequences for the client, compensation would be possible, association president Ivan Velkov said.

The report said that the bill, "consistent with European standards", would be tabled in Parliament by the late summer.

Source: Sofia Echo

Bulgaria in 17% drop in foreign visitors

Ivan Radford — Wed, 28 Mar 2012 12:34:00 GMT

The number of arrivals of visitors from abroad to Bulgaria decreased by 17.1% in February 2012 as compared with January, reaching 279 500, according to the country's National Statistical Institute.

A total of 1.9% less visits with the purpose of holiday and recreation were registered in comparison with the previous month.

The arrivals of visitors from EU Member States in Bulgaria decreased by 5.8% in comparison with the previous month, with the highest decreases observed in visitors from Greece (by 34.4%), Germany (by 26%) and France (24.2%).

However, a 88% increase was seen in the number of Romanian visits.

In February 2012 the number of the trips of Bulgarian residents abroad was 226.400, 10.5% less than January. Greater decreases in the total number of the trips of Bulgarian

residents was observed to the UK and Spain - by 30.9% and 30.5% respectively. A 7.9% increase in the number of Bulgarian trips to Greece was registered.

Source: Novinite

Bulgaria in long-overdue tunnel boost

Ivan Radford — Tue, 27 Mar 2012 12:16:00 GMT

One of the largest infrastructure projects in Bulgaria - though still only imaginary - the Shipka Pass Tunnel - has received the approval of the Bulgarian Environment Ministry.

The Supreme Expert Environmental Council at the Minister granted a permit to the project on Monday, the Coalition for Sustainable Development, a NGO, has announced.

The tunnel at the Shipka Pass in the very middle of Bulgaria is supposed to provide a badly needed transport connection between the North and the South of the country, which are naturally separated by the Stara Planina (Balkan) Mountain.

The Shipka Pass Tunnel will also provide a faster route from the Danube River to the Mediterranean.

According to the investment proposal of Bulgaria's Road Infrastructure Agency, the future tunnel will start to the southwest of the city of Gabrovo and will go under the mountain to the existing road near the town of Shipka. The projected tunnelhas been divided in five sections.

Representatives of Bulgarian NGOs, however, have declared their reservations during the discussions at the eco council (which features both government and NGO experts). The NGOs are concerned that the Shipka Pass Tunnell project might have a negative impact on the natural habitats and populations of some protected species.

Bulgaria's Cabinet has already slated for the long-delayed construction of the ShipkaPass Tunnel a total of BGN 352 M from the EU money it is to receive from the Transport Operational Program for the next programming period (2014-2020).

The Shipka Pass Tunnel was first initiated as a railway tunnel project in 1897 but was not materialized. It was resurrected in 1970, and then again in 1991 and 1999.

Source: Novinite

Big Bargains in Bulgaria for holiday home hunters

Ivan Radford — Mon, 26 Mar 2012 12:23:00 GMT

The cost of buying a holiday home in Bulgaria is getting cheaper, which is good news for foreigners seeking a bargain deal for their new place in the sun.

According to the latest data released by Bulgarian Properties realtor, prices of holiday homes in Bulgaria have slumped by a whopping 50% in comparison with 2008 when they peaked.

Holiday home hunters generally prefer to buy property in Varna on the Black Sea or Burgas. The southern coastal resorts and Sunny Beach in particular have witnessed the highest number of deals.

Russian investors now dominate the Bulgarian market as British holiday homeowners are selling up and coming home in droves - or at least sending foreign money back to the UK.

Russians, who account for 40% of foreign buyers on the property market in Bulgaria, have shown a special preference to the Sunny Beach resort.

In February the average asking price for apartments in the Sunny Beach resort stood at EUR 677/sq. m. compared to EUR 853/ sq.m. a year ago. Deals however are concluded at a much lower price - about EUR 500/sq. m. on average, according to experts' estimates.

Prices are in freefall in the biggest winter resort of Bansko too.

The average asking price of apartments in Bansko in February stood at EUR 550/sq. m., while offers on the low market are around EUR 350/sq.m. Since the beginning of the year, transactions in the mountain town are concluded at about EUR 450/sq.m.

Many Brit expats who have settled permanently in villages and even in the most remote rural areas are happy to sell their houses at a price tag of about EUR 15 500.

Source: Novinite

Bulgaria braced for 13% gas price hike

Ivan Radford — Thu, 22 Mar 2012 00:39:00 GMT

Bulgaria's natural gas price is to go up by 12.73% as of April 1, 2012, the State Commission for Energy and Water Regulation (DKEVR) has stated in a report that is yet to be adopted.

According to Angel Semerdzhiev, head of DKEVR, Bulgaria's state-owned natural gas monopoly Bulgargaz risks going bankrupt if the hike is any lower than that.

The natural gas price increase will lead to a hike of heating prices of between 4% and 13% across Bulgaria; in Sofia, the heating prices will go up by 9%.

The approved hike of 13% is still substantially lower than Bulgargaz's demand - the Bulgarian state company had asked for a natural gas price increase of over 25% as of April 1.

"We believe that Bulgargaz will manage to fulfill its commitments as a public provider, and will provide the needed quantities of natural gas for all consumers in Bulgaria under the best possible conditions," Semerdzhiev said.

"If the increase is smaller than 12.73%, Bulgargaz will end up with a loss per every 1000 cubic meters that it imports because it will have to sell cheaper than it buys," he added.

Source: Novinite

Tourism Revenue in Bulgaria Grows with 4pc for 2011

admin — Tue, 20 Mar 2012 09:35:00 GMT

The revenues of Bulgaria's tourist sector have grown with 3.8% for 2011, totalling EUR 2.8 B, according to Bulgaria's vice-minister in charge of tourism Ivo Marinov.

Marinov was in Moscow to present Bulgaria at the Intourmarket tourist expo, reports Russian info website TourMayak.

There he said that the flow of Russian tourists to Bulgaria in 2011 has increased with more than 20% in comparison with that for 2010, totalling some 455,100 visitors.

Marinov added that the total number of foreign tourists in Bulgaria for last year was 6.4 M persons, which is 4.6% more than that for the previous year.

Source: Novinite.com

Wizz Air to Add Bulgaria’s Varna as New Destination

admin — Tue, 20 Mar 2012 06:22:00 GMT

Hungarian low-fare airline Wizz Air has announced it would add direct flights between Budapest and Bulgaria's Black Sea city of Varna to its summer timetable.

Direct flights between Budapest and Palma de Mallorca and Milan will be also added.

Wizz Air will fly to the destinations out of Budapest from June 18, said chief executive Jozsef Varadi, as cited by MTI. It will also start flying to Malpensa Airport, near Milan, instead of Bergamo.

The Varna airport recently resumed serving passengers and flights after it was closed in October 2011 for rehabilitation of its runway.

Source: Novinite.com

Investment Watch: Investors go to Disneyland

Ivan Radford — Wed, 15 Feb 2012 13:44:00 GMT

Photo credit: Michael Huey

Real estate investors went to Disneyland in January, reveals TheMoveChannel.com's latest Investment Watch.

The report, which ranks the monthly level of interest in the portal's listings, saw the majority of investors turn to townhouses two miles from Mickey's home in search of a dream come true. The newest vacation home community in the Disney area, the Florida development was built in 2007 but a price reduction of one-third last month saw investors flock to buy a holiday home with strong buy-to-let potential.

While Florida topped the Investment Watch rankings for the second month in a row, Disney was not the only resort to receive attention, with a Bulgarian ski hotspot and a hotel in Marrakech providing popular commercial opportunities for buyers looking abroad. For buy-to-let investors closer to home, student accommodation in London and Cheshire saw similar levels of demand, taking eighth and ninth place respectively.

But January saw a new investment product climb up the chart.

Plots of land in Brazil and the UK generated lots of interest, but a carbon credits project in Australia emerged as the month's second most popular listing, proving that investors don't need to go to Disneyland to find a happy ending.

The alternative investment programme promised a 30 per cent return and a government-backed exit strategy on a reforestation scheme in Victoria - enough to attract almost double the number of enquiries received by a coastal villa in Murcia with 107 per cent finance.

Director Dan Johnson comments: "The demand for Florida's Disney homes was always going to be high - the combination of location, price and commercial opportunity is hard to beat. The popularity of the carbon credits project is more surprising though. Is this a sign that property investors are starting to consider more unorthodox investment vehicles for their capital? That remains to be seen, but with a variety of alternative schemes hitting the market, 2012 looks like being a growth period for that particular sector.

The Top 10 investment properties for January 2012 are as follows:

Rank	Property	Country	Company
1	Disney Pool Townhouse, Florida	USA	Starfish Property Investments
2	Carbon Credits, Victoria	Australia	Best Overseas Property
3	Below Market Value Hotel, Marrakech	Morocco	Best Overseas Property
4	Buy-to-Let Townhouse, Detroit	USA	Target Market Ltd
5	Land Development, Minas Gerais	Brazil	Obelisk
6	New Building Plot, Hampshire	UK	Landmark Developments
7	Ski Resort Hotel, Pamporovo	Bulgaria	Imagine Overseas
8	Student Apartments, London	UK	Principal International
9	Student Apartments, Cheshire	UK	Principal International
10	Financed Beach Villa, Murcia	Spain	Blue Med Repossessions

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Bulgarian construction sector is still lagging behind

admin — Fri, 03 Feb 2012 08:12:00 GMT

In 2011, GDP of Bulgaria is anticipated to record a surge of 2-2.5%. Compared to the overall economy, the Bulgarian construction sector is still lagging behind in revival. This is reported in the actual market report by Buildecon. In 2011, growth rate is to be negative for the third year in a row. The pace of reduction is slower than in 2010 and in 2009, and the bottom is to be hit in 2011 at around € 7bln for construction output (at current price) and the sector is to start to rebound in 2012. In 2012, the share of civil-engineering is to exceed 50% of the total output.

Leading segments would again be road construction, due to the large-scale infrastructural projects financed through the EU Programs and renovation initiatives funded by municipalities. In the period of 2012-2013, civil engineering is to compensate the downturn of the other two sub-sectors since for these two years the government is planning the highest absorption rates in EU funding. Residential construction might be triggered only by certain renovation activities in 2012-2013, while the leading segment in non-residential construction is to be industrial construction.

In the residential sub-sector a certain trend of alteration of building types occurred during the crisis years – massive multi-family complexes give way to individual small–scale projects. Investors were pressed by low demand and difficulties in finding financial resources. Homebuyers were attracted by decreasing property prices, but at the same time, they were stopped by the economic uncertainty and the risk of losing future incomes.

Non-residential construction saw an unstable year as well. No major projects reached completion in H1 2011, especially in the three so far leading segments: commercial, office and hotel constructions. Nevertheless, forecasts for the years 2012 and 2013 in terms of shopping centers are more optimistic with a number of new malls to be completed. Existing properties are characterized by higher vacancy rates and dropping rent levels, which might restrain eventual future investment incentives. As a result of the postponed modernization and the available EU support, the upcoming period is to experience growing activity in the field of industrial and agriculture-related constructions.

Source: Property-Magazine.eu

Bulgaria scores perfect performance on 2011 budget

admin — Thu, 02 Feb 2012 05:37:00 GMT

The Bulgarian government has fulfilled its revenue and spending plans for 2011 at close to 100%, and recorded a budget deficit lower than expected, announced the Ministry of Finance Wednesday.

The report has confirmed that the state budget deficit for 2011 has been 2.1% of GDP for the year, lower than the 2.5% previewed in the state budget for 2011.

The Ministry of Finance has announced it has fulfilled its revenue plans for last year at 96.8%, meaning hit has gathered BGN 25.4 B in revenue, or 33.3% of GDP.

The government has spent close to BGN 27 B, which amounts to 95.8% of its spending plans for 2011.

Source: Novinite.com

Historic Bulgarian property goes on sale

admin — Tue, 31 Jan 2012 09:40:00 GMT

Former socialist leader Todor Zhivkov's residence on the Vitosha Mountain near Sofia, Bulgaria has gone on sale to the public.

Zhivkov was the controversial communist president of the People's Republic of Bulgaria from March 4, 1954 until November 10, 1989.

Priced at €3,135,000 his former palace, named the Aglika Residence, has plenty of impressive features including a gym, sauna, cinema room, ice pool, tennis court, two kitchens, double garage and an air raid shelter. The property is split into one large apartment and eight smaller apartments and could make a fantastic boutique hotel or private residence. It is located in a tranquil forest, only a 25 minute drive from Sofia and near to the ski pistes of Vitosha.

The property was also the scene of Zhivkov’s house arrest, after he was tried by his party for embezzling government funds.

Source: APlaceintheSun.com

Bulgaria’s dwelling prices slumped by 6pc in 2011

admin — Mon, 23 Jan 2012 12:43:00 GMT

The average market price of Bulgaria's dwellings decreased by 6.1% in 2011 compared with 2010, according to the country's National Statistical Institute.

The market price index of Bulgaria's dwellings for the fourth quarter of 2011 decreased by 6.2% year on year.

The average decrease of the market prices of Bulgaria's dwellings was 1.5% compared with the third quarter of 2011.

Source: Novinite.com

Most property sales in Bulgaria were people wanting to escape their investment – report

admin — Thu, 19 Jan 2012 05:16:00 GMT

About a third of property sales in Bulgaria in 2011 were motivated by people wanting to get out of their investments, according to a January 16 2012 report by local television station bTV.

The report, quoting a real estate agency study, said that property prices continued to fall in 2011, by nine per cent in Sofia and an average seven per cent countrywide.

However, the number of transactions was stable, according to the bTV report.

The number of transactions conducted in local currency the lev increased against those in euro, a reaction to speculation that the European Union’s common currency was headed for collapse, the report said.

Source: SofiaEcho.com

Burgas named Bulgaria's most dynamic tourist city

admin — Mon, 16 Jan 2012 11:56:00 GMT

The Southern Bulgarian Black Sea city of Burgas is the country's highest-ranked tourist city, according to Euromonitor International's latest Top City Destinations Ranking.

Burgas has been placed 84th in the ranking designed to cover 100 of the world's leading and most dynamic cities in terms of international tourist arrivals in 2010. Some 1.54 million tourists visited Burgas in 2010, according to Euromonitor International.

One more Bulgarian city, the country's "Black Sea capital" Varna, has been included in the ranking, occupying the 86th position with approximately 1.5 million visitors.

Source: Novinite.com

Bulgarian property prices ‘have hit bottom’ brokers say – report

admin — Mon, 09 Jan 2012 12:15:00 GMT

Property prices in Bulgaria were five to 10 per cent lower in 2011 than in 2010, while initial estimates for this year are that they will remain largely unchanged, at "crisis levels", according to brokers quoted in a report by television station bTV.

In 2010, a bid price a sq m in capital city Sofia was close to 1100 euro but in 2011 this decreased to 920 euro, according to the bTV report.

The decline in Varna, Bulgaria’s main Black Sea city, was similar, the report said.

In late 2011, the price of property in Bourgas on the Black Sea decreased to an average 860 euro a square metre, and in Plovdiv, Bulgaria’s second city, to close to 770 euro a sq m.

Source: SofiaEcho.com

Global housing markets struggling

Ivan Radford — Mon, 05 Dec 2011 11:29:00 GMT

The world's housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

What is most remarkable this quarter is the wide variety of outcomes:

Brazil and India booming

India and Brazil's housing markets have continued their spectacular outperformance, with Delhi house prices up 22.68% during the year to Q3 2011, according to National Housing Bank (NHB) figures. There were strong house price increases in almost all India's major cities, reflecting the country's current high rate of consumer price inflation, despite a drop in demand resulting from the repo rate hike in October (currently at 8.50%), the 13th since March 2010, making home loans costlier.

Brazil's Sao Paolo had the second highest house price rise in the world during the third quarter, with house prices up 5.88% during the quarter, according to the FIPE- Zap price index. Sao Paolo had an astonishing year, with house prices up 20.26% during the year to Q3 2011. The country is experiencing an unprecedented boom, not least because it is the host country for the World Cup in 2014 and the Olympics in Rio de Janeiro in 2016.

Europe's mixed housing markets

The world's second strongest quarter-on-quarter house price rise occurred in an unexpected city - Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria's capital.

The Baltics have also performed strongly. Latvia is the third best performer among all reporting countries in our survey over the twelve months to Q3 2011. In Riga, standard type apartments rose 13.31% year-on-year, a quick comeback after a fall of 5.40% in the second quarter.

Following Latvia was Estonia, whose housing market is rallying after three years of terrific losses that began during the onset of the global financial crisis. During the year to end Q3 2011, house prices in Tallinn were up 12.30% with a quarterly rise of 2.71%.

Other European markets which have enjoyed satisfactory increases were Norway (+6.74%), France (+4.80%), and Switzerland (+3.35 %).

Modest house price increases were seen in Slovenia (+0.82%), Iceland (+0.76%), Germany (+0.66%) and Luxembourg (+0.55%) in the year to Q3 2011.

Ireland stays weak

The Irish housing market remains the world's weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008. Quarter-on-quarter, Ireland's house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

Conversely, European countries which saw slower house price falls this year than the previous year include Turkey (-0.50%), Russia (-3.47%), Croatia (-4.59%), Hungary (-4.67%), Athens, Greece (-6.57%) and Kiev, Ukraine (-7.02%).

Asian housing markets now cooling

In Asia, several countries had house price increases during the year to end Q3 2011, albeit less strong than last year, following the government measures to curb the heat in their respective housing markets.

In Hong Kong, house prices were up 12.07% year-on-year, after a rise of 19.30% the previous year. In Malaysia, house prices rose by 3.15% year-on-year, after a rise of 5.76% during the same period last year. In Singapore, house prices rose by 2.73% year-on-year, a big drop from last year's 18.96%. In Taiwan, house prices were up a mere 0.46% year-on-year, after a rise of 6.97% during the same period the previous year. During the latest quarter, house prices were down 7.02%.

However, housing markets in South Korea and Philippines (Makati CBD) improved from a year earlier with price rises of 1.55% and 0.89%, respectively.

In Japan (Tokyo) and China (Shanghai), housing markets have been deteriorating since Q1 2011. House price declines are being reported across China, indicating the success of government measures during the past year. The country's skyrocketing housing prices have been blamed for social tensions and other economic problems.

Patchy progress for North America

The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet - National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.

In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes' worth decreased modestly in the third quarter, though levels remained high.

Israeli house price boom now over

House prices in Israel fell 0.58% in the year to Q3 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%.

The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward.

Pacific housing markets heading down

In New Zealand, median house prices were down 4.30% from a year earlier, with a quarterly house price fall of 2.26%. However, there is optimism in the housing market buoyed by low interest rates and recovery following earthquakes in Christchurch.

High interest rates and global economic uncertainty have continued to impact the Australian housing market, and it slumped 5.55% in the year to Q3 2011, the third quarter in which annual house price falls were reported this year.

Accordingly, the Reserve Bank of Australia (RBA) lowered the benchmark interest rate in November, the first time since April 2009, moving to boost the nation's economy amid uncertainty stemming from Europe's debt crisis. The benchmark rate is currently at 4.50%.

Bulgarian companies must re-register by end of 2011

Ivan Radford — Mon, 05 Dec 2011 06:29:00 GMT

Bulgarian companies must re-register by the end of 2011 to keep their properties, industry figures warn.

The Law on the Trade Register, which came into force in 2008, states that all existing companies in Bulgaria must be registered in the new Online Trade Register by Saturday 31st December 2011. If not, they will be removed from the register of companies in Bulgaria resulting in loss of their assets (including real estate).

After the end of the year, companies that are not re-registered will not be allowed to sell their properties.

Bulgarian Properties comments: "If you have a company in Bulgaria, it is very important to organise your company registration on the online Trade Register as soon as possible."

For more details, the website of the online Trade Register is: www.brra.bg.

Foreign Office reveals strangest requests

admin — Fri, 11 Nov 2011 09:58:00 GMT

What clothes to take on holiday and where to go for Christmas lunch are among the most bizarre queries asked of Foreign Office staff abroad, it has been revealed.

They are more used to dealing with lost passports and victims of crime, but British consular staff overseas are constantly plagued with strange requests from expats and holidaymakers.

Staff at an embassy in Spain have been recently been asked to find out the size of the Prince of Wales's feet so the caller could send him some shoes “as a present”, while in Sofia, a Briton asked if the consulate could sell His house.

Other requests have included asking for Phil Collins' phone number (Spain), wanting to know how to get rid of ants at a holiday villa (Florida), and how to build a chicken coop (Greece).

Source: The Telegraph

Property prices in Bulgaria have fallen by over 6pc in the last year, data shows

admin — Fri, 04 Nov 2011 07:59:00 GMT

Residential property prices in Bulgaria have fallen by 6.1 per cent year on year, according to the latest third quarter figures from the country’s National Statistics Institute.

The average price of flats in the country was 901.32 leva per square meter between July and September. It means that in quarterly terms, housing property prices saw a decline of 0.8 per cent.

Property prices were the highest in Varna, at 1493 leva a square meter, followed by Sofia with 1456 leva and Bourgas with 1184 leva.

Some 20 regional cities saw quarterly declines in prices, with the most significant drop recorded by Smolyan, down 4.7 per cent, followed by Yambol, down 4.2 per cent and Pleven, down 3.7 per cent.

Source: PropertyCommunity.com

Prices of Sofia homes lose 6.8 per cent over a year

admin — Fri, 28 Oct 2011 07:52:00 GMT

Average market prices of homes in Bulgaria's capital city of Sofia have fallen by 6.8 per cent in the span of 12 months, while the decrease in the third quarter of 2011 was 3.9 per cent compared to the quarter before, according to an index compiled by Raiffeisen Real Estate.

The survey data shows that average market prices for Plovdiv homes were 4.1 per cent lower than in Q3 2010 and prices in Varna were 3.6 per cent lower. Quarter-on-quarter, average home prices in Varna decreased by 1.4 per cent and those in Plovdiv just about escaped negative territory with a rise of less than 0.1 per cent.

Figures for the last two quarters reveal the diverging fortunes of Bulgaria’s largest cities in prices in the non-residential property market. Between quarters, prices in Sofia and Varna dropped by 9.6 per cent and 6.4 per cent, respectively. Plovdiv and Bourgas, however, registered respective increases of 2.5 per cent and 6.8 per cent. This segment of the real estate market in the capital includes deals for both retail outlets and space for office use, while retail property transactions account for most of the deal activity in other cities.

In recent quarters, there has been an increase in the number of transactions involving commercial sites in central locations, including properties in main shopping streets. However, the research by Raiffeisen Real Estate shows that this has been accompanied by a decline in the average size of the properties sold. This explains the situation with average non-residential prices, as well as the figures for Bourgas and Plovdiv.

Source: SofiaEcho.com

Bulgarian apartment price drop slows in third quarter of 2011

Ivan Radford — Wed, 26 Oct 2011 07:30:00 GMT

The decline of Bulgarian apartment prices has slowed in the third quarter of 2011. The latest data, announced by the National Statistical Institute, shows that apartment prices continued to fall between July and Septmber, but that the drop is slowing down compared to previous periods.

The average price of apartments in Bulgaria’s regional cities dropped by 0.84 per cent between July and September, compared to the second quarter of 2011 – the smallest drop since 2008, reports BulgarianProperties.com.

The real decrease after inflation is 0.95 per cent compared to the previous quarter and 8.92 per cent year-on-year (compared to the same quarter in 2010). For Sofia, the nominal decrease in prices is 0.64 per cent compared to the previous quarter and 8.55 per cent year-on-year. According to NSI, the average price of an apartment is 460 EUR/sq.m.

In the last quarter, apartments in the capital Sofia were sold for an average of 745 EUR/sq.m and in Varna 763 Euros per sq.m. The report from the NSI marks a slowdown in price falls, three years after the beginning of the crisis. The slowing rate of decline is a trend that started in the middle of 2010 and has been expected by experts for some time, as the Bulgarian property market may at last be showing signs of beginning to stabilise.

Number of Bulgarian homes up by 5.4 per cent in last decade

Ivan Radford — Tue, 25 Oct 2011 09:50:00 GMT

The number of Bulgarian Properties has risen over the past decade, according to 2011’s population and housing census.

The figures, published at the beginning of the last quarter by the Bulgarian National Statistical Institute, found that 5.4 per cent more homes exist now than in 2001. There is a total now of 3,887,076 houses in Bulgaria, higher than the 3,688.802 found by the census 10 years ago.

According to BulgarianProperties.com, though, this increase in housing stock is relatively small compared to the property boom of the last decade, where the number of homes increased by 20 per cent. The biggest rise in the number of homes is in the regions of Bourgas and Varna because of the dynamic construction in the cities themselves, as well as the mass-scale construction of holiday homes and resorts in the region.

The data from previous population and housing censuses in Bulgaria show that the number of homes has been increasing ever since 1965 (when the first NSI data of the housing stock came out). In 1975, it increased by 20 per cent compared to 1965, while the increase in the next ten years (until 1985) was 15 per cent. During these years the population also increased by 6 per cent and 2 per cent respectively, driving up demand for new homes.

The 2011 survey also found that the population in Bulgaria has declined by 7 per cent over the past 10 years. The increase in the housing stock, coupled with this population decline, has led to a decrease in the number of inhabitants per home, from almost 4 people in 1965 to 1.9 people per home in 2011.

Bulgarians own 97.5% of their homes, a considerably higher percentage than other European countries, where it varies between 50 and 80 per cent. As of February 2011, 36,723 foreigners live permanently in Bulgaria, making up 0.5 per cent of the country’s population. The largest groups are those of Russian (11,991) and Ukrainian (3,064) citizens, but European Union citizens account for 23% of all foreign citizens – the largest groups are from the UK (2,605) and Greece (1,253).

The report suggests that it will take a few years for existing properties to be absorbed before the construction of new buildings becomes more dynamic, while demand for houses in the big cities will remain stable in the next few years due to internal migration. As a large part of the housing stock in Bulgaria’s cities consists of deprecated Soviet-style blocks, their owners are expected to turn to newly-built homes. But as well this domestic demand for new property, there remains a consistent interest from foreign investors in Bulgaria's real estate, which will have the most impact on holiday homes and rural houses.

Interested in Bulgarian property?

http://bulgaria.themovechannel.com/property/all

Bulgarian house prices plummet

admin — Tue, 11 Oct 2011 07:07:00 GMT

Residential real estate in Bulgaria has seen one-third of its value wiped out since 2008, new research has revealed.

The Sofia Echo reported on a study carried out by estate agency Yavlena, which showed that property prices in the country have dropped by 20.92 per cent compared to 2008, with values declining by 8.5 per cent since last year.

Manager at the firm Strakhil Ivanov told the publication that the bottom end of the market - homes priced between €25,000 (£21,744) and €50,000 - are attracting the most attention from buyers.

Last month, International Business Times highlighted data published by Bulgarian Properties, which indicated that one of the nation's ski resorts - Bankso - had seen real estate values plummet by 50 per cent since 2008.

Source: PropertyShowrooms.com

Bulgaria hopeful after Brazil offers help to crisis-hit Europe

admin — Thu, 06 Oct 2011 08:21:00 GMT

A day after Brazilian President Dilma Rousseff pledged to stand by Europe in the eurozone debt crisis, she is bringing to Bulgaria a huge business delegation.

Rousseff will seek to develop business relations and trade between Brazil and Bulgaria even though the visit has been widely described as personal and highly emotional since it includes a stay in the hometown of her father Gabrovo.

The business delegation, which accompanies President Rousseff, includes representatives of the largest Brazilian companies in the oil industry, hydropower, aircraft and car manufacture, agro-industry and others who will seek contacts with Bulgarian entrepreneurs during a business conference organized jointly with the Bulgarian Chamber of Commerce.

More than 200 companies have registered to take part in the conference and organizers say they are very hopeful that it can lead to fruitful contacts with the economic giant of Latin America.

Source: Novinite.com

3 million visitors flock to Albania this year

admin — Wed, 28 Sep 2011 09:17:00 GMT

Photo credit: savagecat

The number of people visiting Albania in the first eight months of this year has doubled since 2008. The country welcome 3 million tourists between January and August of 2011, as the Balkans continue to attract foreign interest.

The tourism growth has been a constant drive for the Albanian economy, with a 16 per cent increase in tourists this year than 2010. Approximately 300,000 more people visited the country, a jump largely attributed by the Ministry of Tourism to an improved infrastructure and quality of service.

New roads, ports and airports have all been introduced, pushing up international demand. While 870,000 of the tourists recorded were Albanians residing abroad, 2.1 million of the 3 million were foreign citizens, indicating that overseas interest in the Balkans is still rising.

Albania’s progress is only matched by Bulgaria. Continuing to reside in TheMoveChannel.com’s Top of the Props charts, international demand for bargains in the Balkans has been fuelled by the price drop of property in Bulgaria’s ski resorts, which are now 50 per cent cheaper than two years ago.

Developments are therefore on the up in both countries, with Albania’s stretch of coast between Vlore and Sarande – dubbed the “Albanian Riviera” – seeing a rapid wave of construction. But while some developers rush into projects without planning permission, the Albanian property industry praised the development of the Lalzit Bay Resort at the 2011 RealEX Conference.

The Adriatic coast resort was awarded project of the year at the conference, which took place in Tirana, for its high quality infrastructure and strong commitment to the environment.

Resort partner Ravin Maharajah commented:

"Albania is no longer a country hiding in the shadows thanks to an ever improving infrastructure and real GDP growth. Construction projects such as the $400m Tirana-Elbasan highway and increased frequency of flights most recently between London and Tirana have made huge contributions to rising tourist numbers. As well as this, the country has been experiencing high levels of positive publicity with the likes of legendary business magnet Donald Trump speaking of the rapidly growing Albanian property market at the RealEX conference recently.”

"In addition, Albania has become a distinctive emerging market and has been attracting firm interest from foreign investors with foreign direct investment (FDI) in Albania exceeding the $1 billion mark last year according to the UNDP Resident Coordinator."

Interested in picking up a Balkans bargain?

Browse our listings of Albanian and Bulgarian property, including the award-winning Lalzit Bay Resort:

http://www.themovechannel.com/property/details/4287092/

Europe denies two nations entry to travel zone

admin — Mon, 26 Sep 2011 08:34:00 GMT

Preoccupied with fears of increased migration from the south, the European Union told its two newest members, Romania and Bulgaria, on Thursday that they would have to wait to join the bloc’s passport-free travel zone.

Related Finland and the Netherlands objected to admitting Romania and Bulgaria to an offshoot of the bloc known as the Schengen zone, whose members agree to trust one another’s border security and to allow travelers to cross their mutual frontiers without having to show a passport, like moving from state to state within the United States.

Romania and Bulgaria, which joined the European Union in 2007, say they have met the technical standards for joining the Schengen zone, but the two objectors said that was not enough.

Source: NYTimes.com

Three die after family property dispute in Bulgarian town

admin — Wed, 21 Sep 2011 06:58:00 GMT

Three people died after a 73-year-old man opened fire during a dispute over family property in the northern Bulgarian town of Yablanitsa, the Interior Ministry said on September 20 2011.

The dead include the man's 70-year-old sister, her son (51) and grandson (14). Another relative, a 42-year-old woman, was in critical condition in hospital.

The ministry said that the dispute had followed the return from Switzerland of the 73-year-old, where he had been working for a long time.

Source: SofiaEcho.com

Bulgaria ski homes 50 per cent cheaper than in 2008

admin — Thu, 15 Sep 2011 07:50:00 GMT

apartments in Bulgaria’s biggest ski resort are 50 per cent cheaper than 2008, according to the latest figures.

The report, from market analyst Bulgarian Properties, reveals that apartments in Bulgarian resort Bansko have halved in price over the past three years, attracting interest from buyers looking for affordable winter property.

In the first eight months of 2011, apartments in Bansko were sold at an average of 760 euros per square metre. But after a hefty 10 per cent price drop in May, the index value of Bansko property is now at 51.31 – almost half that of November 2008, when the index value was at a peak of 100.

The property bargains aren’t just limited to the Blagoevgrad region, though, with Bulgarian beach property also seeing major declines in prices over recent years. But Bansko is leading the way on the ski slopes, with other major resorts seeing only a 22 per cent decrease in house prices.

As the summer season ends and buyers begin to think of colder climates, Bulgaria continues to attract interest from property buyers. Following its rise to become a top ten world destination in August, Bulgaria is still at number eight in TheMoveChannel.com’s Top of the Props report for September.

Although The Alps remain a firm favourite for ski fanatics, they may face new competition from the Southeast Europe country. Bargain ski property in Bulgaria? It’s snow joke.

Interested in property in Bulgaria?

http://bulgaria.themovechannel.com/property/all/

Transactions increase in Bulgarian real estate market

admin — Mon, 15 Aug 2011 11:59:00 GMT

Residential property prices in Bulgaria are continuing to fall although some data suggests that sales are rising as buyers seek bargain real estate deals.

Prices fell by 6.4% year on year in the second quarter of 2011, according to the latest figures from the National Statistics Institute (NSI).

In quarterly terms, housing prices fell by 1.6% and 23 regional cities registered quarterly drops in prices, with Veliko Turnovo recording the most significant decline of 5.5% followed by Gabrovo at 5.4% and Vidin and Plovdiv both at 4.7%.

In the major cities the picture was better with prices in Sofia falling by just 2.1% and prices in Varna edging up 0.9%. The highest rise in housing prices was 1.3% in Rousse and Blagoevgrad.

Source: Property Wire

New housing construction in Bulgaria grows 13%

admin — Fri, 12 Aug 2011 07:33:00 GMT

Bulgaria's new housing construction rose by 13 per cent on the year to 742 buildings in the second quarter of 2011, preliminary data by the National Statistics Institute (NSI) showed.

Newly-built housing, however, dropped by 26 per cent in annual terms to 3500 homes in the quarter.

The largest number of new residential buildings was recorded in Bulgaria's two Black Sea districts - 121 in the Bourgas district, with 1122 housing units, and 100 buildings in Varna, with 573 residential units.

Sofia was third with 36 new buildings comprising 260 housing units. The lowest number of residential properties were built in Montana, Vratsa and Vidin.

Source: SofiaEcho.com

Top of the Props: Bulgaria breaks back into top ten

admin — Thu, 11 Aug 2011 09:38:00 GMT

Photo credit: Ali Burçin Titizel

Bulgaria has broken back into the top ten most popular real estate markets, according to August’s Top of the Props report from TheMoveChannel.com.

3.3% of all enquiries in July were directed at Bulgarian property, marking the country’s return to the overseas property portal’s top ten for the first time in three years.

The most popular countries remain the same, with Spain staying in the top spot for a second month running. Together with France, USA and Portugal, the traditional destinations account for over a third of all property searches from buyers interested in property abroad.

Director Dan Johnson said: “As the Euro debt crisis continues, people are looking for bargain investments and holiday homes at low costs. Bulgaria’s real estate sales have been improving all year, with buyers attracted by exceptionally low prices for winter property, so it’s no surprise that interest has increased.”

Bulgaria’s boost may not rival the traditional Western European destinations, but its growing popularity indicates an interesting shift away from familiar markets as searches for property in Greece and Thailand both declined.

The biggest movers of the month are the prime estates of the Caribbean: the Cayman Islands climbed 17 places, while Barbados entered the top ten with a jump of four places.

The full breakdown of the Top 40 is as follows:

Overall Enquiry Volume for July 2011
Rank	Country	Share	Change
1	Spain	12.34	Non-mover
2	France	9.2	Non-mover
3	USA	6.75	Non-mover
4	Portugal	6.1	Non-mover
5	Italy	5.89	Non-mover
6	Brazil	4.22	Non-mover
7	Bulgaria	3.31	Up 4
8	Turkey	3.22	Down 1
9	Cyprus	2.77	Down 1
10	Barbados	2.47	Up 4
11	Cayman Islands	2.43	Up 17
12	Thailand	2.33	Down 3
13	Morocco	2.24	Down 1
14	Cape Verde	2.17	Up 1
15	Greece	2.02	Down 5
16	Germany	1.97	Up 1
17	Malta	1.64	Down 1
18	Slovenia	1.5	Up 6
19	Poland	1.38	Non-mover
20	Canada	1.12	Non-mover
21	Croatia	1.08	Up 4
22	India	1	Down 4
23	UAE	0.99	Down 1
24	Hungary	0.9	Down 3
25	St Lucia	0.73	Down 12
26	Mexico	0.63
27	Egypt	0.59	Down 4
28	Montenegro	0.46	Up 2
29	Switzerland	0.45	Down 3
30	Jamaica	0.35	Down 1
31	Australia	0.34	Up 1
32	Nicaragua	0.31	Up 13
33	Malaysia	0.3	Non-mover
34	Czech Republic	0.28	Up 12
35	Tunisia	0.28	Non-mover
36	Bahamas	0.24	Down 2
37	Indonesia	0.21	Down 10
38	Panama	0.21	Up 3
39	Philippines	0.16	Down 2
40	St Kitts and Nevis	0.16	Down 1

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Bulgaria's property market gained momentum in H1 2011

admin — Mon, 18 Jul 2011 11:03:00 GMT

Bulgaria's real estate market showed an improvement in the first half of 2011 for the first time since the start of the crisis, with the number of deals registering an increase on the back of a slow decline in prices, according to data from local property agencies.

The country's economic growth, coupled with the drop in property prices since the crisis broke out, has led to a rise in sales, which is the first positive sign for the market, Polina Stoykova, chief operating officer at real estate agency Bulgarian Properties, said.

According to Tihomir Tsakov, head of property agency Aristo, a more rapid recovery by the market is being curbed by unemployment, subdued demand and frozen income.

The country's property market saw a 27 per cent annual increase in the number of deals in the first six months of the year, with the country's four largest cities - Sofia, Plovdiv, Varna and Bourgas, also displaying increases, going by Registry Agency data.

Source: Sofia Echo

Portugal & Bulgaria flights scrapped before they start

Sarah Kendell — Thu, 14 Jul 2011 12:05:00 GMT

Charter airline Tor Air has scrapped its summer programmes to Portugal and Bulgaria just over two weeks before they were due to start.

A spokesman for Tor Air said it made the decision to drop the flights between Gatwick-Faro and Gatwick-Burgas flights because of "poor sales" on the routes.

The weekly flights were due to start in the second half of July and continue throughout August.

The spokesman told Which? Travel that a decision was made to drop the flights at the beginning of last week. He would not say how many customers had been affected, but said all would be given refunds.

However, because the programmes were cancelled more than two weeks before they were due to start, passengers are not entitled to any compensation.

Some passengers have reportedly been left trying to find replacement flights as they had booked hotels and car rentals around the Tor Air service.

Sofia's Real Estate Market Back on Feet - Company

admin — Wed, 13 Jul 2011 06:51:00 GMT

Bulgarian capital Sofia's real estate market seems to have recovered from the crisis, as it has grown four times more active than in its worst period, according to an analysis prepared by the Bulgarian Address Real Estate company.

Prices are stable in Sofia, according to the company, with properties valued under EUR 50 000 the most sought after among buyers. But even though 45% of all buyers are looking for properties below EUR 50 000, deals worth more than EUR 100 000 are not so rare as they used to be.

Two-room apartments are the most sought-after in the Bulgarian capital, Address Real Estate says, as cited by the Dnevnik daily.

Buyers are now more inclined to seal the deals more quickly – within 1 and 3 months after they start choosing.

Source: Novinite.com

Bulgarian agent sees sales soaring

Sarah Kendell — Tue, 21 Jun 2011 09:55:00 GMT

It’s official – the buzz is back in Bulgaria. Huge price reductions, beautiful scenery and good occupancy rates as a result of the country’s popularity with holidaymakers from nearby Russia are sending investors flooding back to the real estate market in the Eastern European nation, as property agents Imagine Overseas discovered when they achieved a phenomenal 20% sales conversion rate from enquiries on their latest campaign with TheMoveChannel.com.

Although many Brit buyers especially were running scared after the recession, Bulgaria has experienced a particular renaissance with Russian buyers, who were quick to take advantage of the huge discounts to luxury new-build properties constructed at the height of the boom. Similarly to Spain, many local developers are now offering stellar deals with little to no initial deposits needed and full property management costs included in the purchase of your investment.

International investment property agents Imagine Overseas are particularly optimistic about the recovery in the market, having sold a stellar 15 units off the back of one email campaign for their latest resort development in the Bulgarian ski fields, Pine Hills Resort and Spa. “I believe that a combination of such a unique project coupled with a high quality targeted campaign ensured a successful response”, said Imagine’s Jay Musa. “This is the highest success rate from a mailer we’ve ever received.”

With no deposit required and ski units available for as little as €23,000, the overwhelming response no doubt owed much to the attractiveness of the deal – a factor which developers and agents would do well to consider in recovering markets such as Bulgaria, says TheMoveChannel.com’s Managing Director, Dan Johnson. “For the right opportunities at the right prices, investors are once again ready to move, though it will no doubt be with a little more caution than in the halcyon days of the last decade”, he says.

For more information on Imagine Overseas’ latest development, now selling in its 1st phase, contact info@imagine-overseas.com

Interested in advertising your property?
Find out more about TheMoveChannel.com's lead generation services for agents, developers and private owners here: http://www.themovechannel.com/advertise/

Bulgaria still top with Russian investors

admin — Tue, 07 Jun 2011 07:00:00 GMT

Reports state that Bulgaria is amongst the top 3 countries for the favourite destination to purchase property by Russian investors, following Spain and Turkey.

A preference for many Russian buyers is in Bulgaria, where both countries culture and language are similar.

Also with real estate prices have fallen significantly in Bulgaria over the past few years it is proving a good investment for Russian buyers.

Statistics state that up to 40% of investors are prepared to pay between 100 000 Euros - 250 000 Euros for a luxury property in the capital city of Sofia, or apartments along the Black Sea coast.

Source: QuestBG.com

Public transport overhaul for Sofia, Bulgaria

admin — Tue, 24 May 2011 03:09:00 GMT

The Sofia City Hall has applied with the Regional Development Program for EU funding for its "Integrated Project for Public Transportation."

The information was reported Monday by Deputy Mayor, Lyubomir Hristov, who says the total cost of the project is estimated at EUR 61.4 M.

The funds will be used to purchase 50 new trolleys and to build a new tram rail between the Ecclesiastical Seminary through the "G.M. Dimitrov" boulevard to connect with the 18 tram line to the "Darvenitsa" district. The goal is to link the tram with the "G.M. Dimitrov" metro station.

The funds will further be used to renovate the entire tram rail on "Bulgaria" boulevard and to mount 600 new boards with public transportation traffic information.

Source: Novinite.com

Bulgarian Hotel Revenues Up 2% Q1 2011 Y/Y

admin — Wed, 18 May 2011 07:09:00 GMT

The total number of accommodation facilities in Bulgaria - hotels, motels, camping sites, mountain chalets and others increased by 1.9% in the first quarter of 2001, compared to the same period of 2010.

Meanwhile, rooms and beds in them decreased by 5.1% and by 6.8% respectively.

The data was released Tuesday by the National Statistics Institute, NSI.

In the first quarter of 2011, 2 041 accommodation facilities with more than 10 beds were functioned in the country. The number of rooms in them was 51.1 thousand, while the number of beds - 108.7 thousand.

In the first quarter of 2011, the total number of nights spent inaccommodation facilities was 1 558.6 thousand and rose by 63.7 thousand (4.3%) compared to same period of 2010.

Source: Novinite.com

Residential prices fall in Bulgaria, report shows

admin — Mon, 16 May 2011 11:40:00 GMT

Residential property prices in Bulgaria fell in the majority of regions in the fourth quarter of 2010, although there were some regional differences.

Home values in the capital Sofia fell by 9.4 per cent year-on-year and by 5.2 per cent compared to the previous quarter, while in Varna prices dropped seven per cent compared to 2009 figures.

However, the Black Sea location saw values climb 1.9 per cent compared to the previous three-month period, indicating a gradual return to strength.

The news could tempt a number of investors to look for property in Bulgaria, with some regions showing signs of improvement.

Source: Property Showrooms

601 New Residential Buildings in Bulgaria in Q1 2011

admin — Wed, 11 May 2011 06:04:00 GMT

In the first quarter of 2011, the newly built residential buildings in Bulgaria were 601, according to the preliminary data of the National Statistical Institute, NSI, released Tuesday.

Compared to the same quarter of 2010, the number of these buildings increased by 16.7%, but the number newly built units in them fell by 5.3% to 3 109.

The largest number of residential buildings and dwellings has been built in Varna - 103 buildings with 564 units in them. Burgas is second with 94 residential buildings with 643 units, followed by the Region of Sofia City - 40 buildings with 279 units.

In the first quarter of 2011, the useful area of the newly built units was 241.9 thousand square meters or 3.6% less than the same quarter of 2010. The living floor area of the dwellings went down by 1.7% to 153.6 thousand square meters.

Source: Novinite.com

Bulgaria's Varna Airport to be shut down for 4 months

admin — Tue, 10 May 2011 08:05:00 GMT

The airport in Bulgaria's Black Sea capital Varna will be closed down for unprecedented repairs after the end of the 2011 summer tourist season.

The Varna Airport will be undergoing repairs from October 15, 2011, till February 28, 2012, the Nadorno Delo daily reported. This is the first time the airport will be shut down since it was opened on May 9, 1948.

For the specified period all Varna Airport flights will be redirected to the Burgas Airport in the city of Burgas some 100 km to the south. The Varna Airport will provide free bus transport to the Burgas Airport for the duration of the repairs.

The Varna Airport management has already started to notify the air companies and tour operators about the planned temporary closure.

Source: Novinite.com

Russians look to increase exposure to foreign property

admin — Thu, 21 Apr 2011 09:43:00 GMT

Demand for overseas property from Russian buyers is set to soar, as many wealthy investors look to diversify their portfolios with homes abroad.

Property magazine International Residence recently released new research which revealed that 40 per cent of the visitors to the Moscow International Investment Show were planning to spend an average of EUR 100,000 to EUR 250,000 on an overseas property.

A further 11 per cent were considering spending in excess of EUR 500,000 on a foreign real estate purchase.

The most popular destination for the Moscow buyers was Bulgaria, closely followed by Spain, with third place going to Turkey. However, the research noted that a number of emerging property markets were also attracting the attention of savvy Russian buyers.

Source: IPIN Global

Long-term property price growth in Bulgaria shows promise

Sarah Kendell — Wed, 30 Mar 2011 10:53:00 GMT

Despite the recent collapse in its property market, those who bought into Bulgaria in the early noughties would still have a hefty profit made on their investment, according to a new report by a local agent.

Research completed by Sofia-based Bulgaria properties indicates that prices have risen in the country by an average of 200% since the year 2000, with the highest growth areas in the cities of Silistra, Turgovishte and Kurdjali. The larger areas of Sofia and Varna, meanwhile, saw average price increases of 171% and 237% respectively over the decade.

"We witnessed a very dynamic decade for the Bulgarian property sector, which brought a drastic surge in prices and number of deals", said Bulgarian Properties chief operating officer Polina Stoikova. "[This was] followed by a steep contraction in the last two years."

Bulgarian property auctions climb to twice last year's rate

admin — Thu, 17 Mar 2011 12:54:00 GMT

The number of property auctions taking place in Bulgaria during the first few months of 2011 was double that of a year previous, it has been reported.

Data provided by the Bulgarian Chamber of Private Enforcement Agents (BCPEA) and targ.bg shows that numbers hit between 1,500 and 1,600 in January and February this year. This is compared to an average of between 700 and 800 a month in 2010, the Sofia Echo reports.

The news could result in lower prices for a number of individuals looking to buy property in Bulgaria. According to agents, the increase in property auctions was attributed to the growth of non-performing mortgage loans, as well as to the accumulation of old tenders that found no buyers.

Elsewhere, the news provider reports that the number of residential and administrative building permits issued in Bulgaria during the final quarter of 2010 decreased.

Source: Property Showrooms

Russian buying boom prompts Bulgarian property recovery

admin — Wed, 09 Mar 2011 12:41:00 GMT

Bulgaria's crisis-hit real estate sector is pinning its hopes on Russian holiday-home buyers rediscovering one of their favourite communist-era travel destinations, AFP reported.

Russians with money to burn are replacing British property buyers who rushed to buy second homes on credit several years ago and are now re-selling at half-price following the economic crisis, according to Antonia Wirt, Bulgarian section chief of the International Real Estate Federation FIABCI.

"In the past three or four years, over 200,000 Russians have bought property in Bulgaria, worth over a billion dollars (726 million euros)" in total, FIABCI president-elect Alex Romanenko told AFP on the sidelines of a conference in the ski resort of Bansko. "Bulgaria occupies a dominant position in the real estate market in the Balkans, which has a great potential," he added.

The similarities of the Bulgarian and Russian languages, which both use Cyrillic script, close cultural ties and the common Orthodox religion facilitate contacts and make Russians feel quite at home in Bulgaria, real estate agents say.

Source: Focus Information Agency

Bulgarian property market set for recovery

admin — Fri, 25 Feb 2011 11:29:00 GMT

Bulgaria's property market could be set for a revival later this year, as a new breed of investor looks to take advantage of low costs and an improving economy in the country.

Real estate consultancy Colliers International has said that a rebound in sales is likely to occur in the second half of 2011, in response to an improvement in Bulgaria's macro-economic credentials.

However, the organisation has warned that there is a risk of shortage of high-end property units, as no large-scale projects were started in 2010.

"Our expectations for the first half of 2011 are to be as challenging as 2010 was. The second half of the year will mark the upswing in almost all real estate segments [residential and commercial]," said Atanas Garov, managing director of Colliers International in Bulgaria. "We are positive that new players will be seen this year, which will bring liquidity on the market and will define its development in the medium term."

Source: Property Showrooms

Warnings increase of Bulgaria property scams

admin — Thu, 10 Feb 2011 10:48:00 GMT

Solicitor Anthony Joyce has been acting for property investors in distress since he agreed to represent people who’d invested in apartments being sold in India by a company called Kuvera. They had bought apartments costing from around €30,000 but found they weren’t being built.

He started a successful action to freeze the Irish assets of Kuvera’s owner, Kieran Murphy, an action that ended with 230 investors settling with the developer. They got properties in South Africa and the UK and shares in the Indian developer’s company; they are still waiting for €7.7 million awarded to them in December 2010 against a Northern Irish solicitor involved with Kuvera.

Joyce is also taking action against Simple Overseas Properties on behalf of investors in a Moroccan development called Assilagh Beach and Golf resort and against Ciaran Maguire of Flash Developments who sold properties worth €300,000 in Cape Verde. Both Simple and Flash have now gone out of business. Joyce says the common thread in the three cases is that some element of the contract was created in Ireland and there are documents to prove it.

Since these cases, he has had many queries from people who bought in developments in Bulgaria and elsewhere. “I tell people, the first port of call is the jurisdiction where you paid the money.”

Source: Irish Times

Bulgaria property values drop to six-year low

Sarah Kendell — Wed, 26 Jan 2011 12:02:00 GMT

The property market in Bulgaria experienced almost a twofold decline in sales since the record high number of deals registered in 2007, according to official figures. The data from the National Statistical Institute (NSI) and Registry Agency also shows that prices have lost a third of their peak value in 2007 and fewer building permits were issued.

And there is no sign of an improving market. According to local real estate brokers the downward trend is likely to persist throughout the first half of 2011.

The number of property deals in the country, including sales of land, residential real estate and buildings, has close to halved in the past four years, with deals in Sofia, Varna and Bourgas dropping between 5% and 9%, according to Registry Agency data.

Property prices are now about 33% lower than in 2008, according to NSI. The average price of real estate in 2010 was 964 leva per square meter in with the most expensive prices in the capital city Sofia at 1,569 leva per square meter. The lowest property prices were in the town of Kyustendil at 567 leva per square meter.

Deadline looms for Bulgaria buyers

Catherine Deshayes — Wed, 22 Dec 2010 19:13:00 GMT

December 31st is fast approaching, meaning that all those who own land or property in Bulgaria should think about re-registering their asset or potentially face losing it forever...

Due to Bulgarian laws which forbid foreigners from buying land in their own name, all land - or plots with property on - must be purchased through a company registered in the country.

As recent amendments have been made to the Bulgarian Commercial Law and the Commercial Register Law in accordance with the EU Legislation System, initially all Bulgarian companies would have had to be re-registered by December 31st 2010.

However, following much controversy and a lack of awareness amongst foreigners, the Bulgarian parliament has extended the deadline until 30th June 2011. This means that all overseas nationals who purchased land or a home in the country before 2008 must ensure that their companies comply with the new registration laws by that point.

However, despite an extension being good news for all companies that haven't been re-registered yet, legal experts are advising company owners that it is not sensible to rest on their laurels and wait until June to carry out the necessary work.

Instead, they say, owners should plan to meet the original December deadline as numerous hurdles - such as missing documents, deceased shareholders and shareholders' disputes - may arise when applying for re-registration which could delay the process.

Companies which fail to re-register may be removed from the Bulgarian Registry and placed into liquidation, which would not only result in a loss of all company assets - including holiday homes - but also make the company liable for the liquidation costs.

There is growing concern that many foreigners are simply not aware of the need to re-register at all or will miss the June deadline to do so.

Check out homes for sale all across Bulgaria at http://bulgaria.themovechannel.com/

Picture by kevinzim

Bulgarian economy posts annual growth

Catherine Deshayes — Wed, 17 Nov 2010 20:33:00 GMT

The Bulgarian economy exited the recession during the third quarter of 2010 with a 0.3 per cent year-on-year growth, it has been claimed...  

According to flash estimates conducted by the National Statistics Institute in the country, the increase marks the first rise in the economy on annual basis in a year and a half.  

The news is sure to be of interest to those looking to buy property in Bulgaria, with the economy strongly linked to home prices.  Furthermore, the growth followed a 0.5 per cent expansion which occurred in the second quarter of 2010, the figures show.  

The data also shows that the growth was mainly fuelled by the agricultural sector, which saw a quarter-on-quarter growth of 1.2 per over the last three months.  

Meanwhile, the statistics also help to confirm the forecasts of the economists surveyed last week by Dnevnik, which found that while the economy in Bulgaria is expanding, any recovery is likely to be long and drawn out.

Source: www.propertyshowrooms.com

Bankrupt Bulgarian company: bad news for capital market

Steph Engall — Fri, 08 Oct 2010 14:42:00 GMT

The Bulgarian capital market is to suffer as a result of the liquidation of Moststroy AD, a construction company controlled by billionaire Vassil Bozhkov...

A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it has no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them.

"The news is no surprise for me. Even though the company is heavily in debt and is in the red, this unhappy end was brought about by the majority owner," Hristo Vladimirov, analyst at TBI Invest, a company of TBIH specializing in the investment banking, told local business news portal Investor.bg.

"The developments that we are witnessing do not bid well for the Bulgarian capital market and are not a signal that will restore the confidence of the investors, particularly those from abroad," he added.

According to him most of the companies, which are in debt and in the red, are forced to file for insolvency due mostly to siphoning.

"There is just one word, which can describe this news best, and it is "bad"," says Borislav Nikov, an analyst.

"What happened will certainly have an impact on the other companies, who have no funds to refund their loans. Following this precedent, it will be more difficult to get credits from the banks, while the shares of these companies will be perceived as even more risky and investors will be quick to get rid of them."

Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan.

Source: Sofia News Agency

Ukrainian investors look to Bulgarian real estate

Steph Engall — Thu, 07 Oct 2010 13:08:00 GMT

Local Ukrainian investors are being advised by business edition UBR of opportunities in Bulgarian property...

The Bulgarian real estate market is booming and is one of the most attractive investment opportunities, according to the Ukrainian business edition UBR.

The site informs that expectations property prices in Bulgaria would skyrocket after the country's EU accession failed to materialize and these prices remain the lowest in the Union over the economic crisis.

A nice apartment in Bulgaria can be now purchased for EUR 40 000 while a vacation home is about EUR 70 000, the publication points out, warning, however, there is mass construction at the top Bulgarian summer resorts, boasting the best beaches.

In addition, UBR lists land prices in Bulgaria from EUR 30 to 120 per square meter, depending on location.

Another noted advantage for potential investors is the opportunity to receive multiple-entry, one-year visa after becoming property owner in Bulgaria.

Source: Sofia News Agency

Expats investing in Bulgaria

Steph Engall — Tue, 05 Oct 2010 12:17:00 GMT

The number of expats living in Bulgaria increases each year. They can be found in virtually every village, mostly British. With an inviting climate, mountains and beaches, it is clear to see why many enjoy the relaxed lifestyle and natural beauty the country has to offer...

Beginning with the introduction of the currency board in 1997, Bulgaria began a course of improvement to become a politically stable country with an economy improving and developing quickly. British expats say that some prices are comparable or even higher than in Britain, but the cost of living is lower on average, as food, clothing, furniture and other staples are as much as 65% lower in cost than in Britain. Low property taxes are also a draw.

While there is a lifestyle for most everyone, from urban chic to rustic rural homes, virtually everyone in Bulgaria has access to telephone services, mobile phone coverage, high speed Internet and cable TV. There are train and bus services to transport people from the smaller villages to the more urban centres with more amenities like shopping centres, hospitals and schools.

Investment in Bulgarian real estate is growing, as there are preferential conditions and guarantees offered to foreign investors. Bulgarian property prices are still lower than most other European tourism destinations as well. The Bulgarian Constitution and legislation guarantee that either foreign persons or companies can invest in Bulgarian real estate personally or as a local legal entity.

While a person can purchase a home, villa or flat, including limited ownership rights, they cannot own land. However, setting up a company based in Bulgaria to own the property allows the ownership of the land as well. Using a Bulgarian attorney, setting up a company is not expensive and quite easy to do. There are other ways, such as a joint venture with a local company, or acquiring an existing company.

The Bulgarian government has taken the stance that foreign investment is good for the future of the country. In trying to attract foreign investment in the economy, the rules for real estate investment have been made quite favourable. With more expat residents every year, it would seem to be worth an investigation into the merits of investment in the Bulgarian economy and in Bulgarian real estate especially.

Source: I-Newswire

Bulgarian PM outraged by global draining of state treasury

Steph Engall — Mon, 04 Oct 2010 12:21:00 GMT

Bulgarian Prime Minister, Boyko Borisov, told his ministers that thousands of agencies and offices abroad are draining the State treasury...

Borisov spoke during the Council of Ministers meeting, giving as an example a State residency in New Jersey in the US, owned by Bulgaria, which was used by the member of the former Communist cabinet (Politbureau), Petar Mladenov, for his stay in the US one to two weeks each year in the 80s, but it is now abandoned, in a deplorable state, and has accumulated USD 30 M in fines over the lack of management such as having the grass cut regularly.

Borisov pointed out if he owned a luxury house in New Jersey, he would have been a millionaire by now from rent and sublets to embassies and socialite events, but currently the property is in such condition and the fines are so staggering that the State can never sell it for profit.

"I saw with my own eyes something unbelievable - our Consul General in New York, whose residency costs the State USD 5 000 a month for rent, asked for USD 20 000 upfront to do repairs at the Consular building and set small living quarters inside and was refused.

The PM pointed other examples with mismanaged properties abroad - apartments and offices, including a castle in Switzerland, adding he wanted all those responsible to be sacked.

"This is why I support Finance Minister, Simeon Djankov's strategy of severe cuts. Only then you will understand. When you find out there is no money for your own salaries, you will be forced to look around, dig and fire those who have done and continue to do the damage," Borisov warned the cabinet members.

Source: Sofia News Agency

Italy to invest €3 billion in Bulgaria by 2020

Steph Engall — Thu, 30 Sep 2010 12:57:00 GMT

The next ten years will see investments by Italian companies in Bulgaria amount to €1-3 billion...

This figure was revealed by Massimo Bartocci, the head of Italian business association in Bulgaria, Confindustria Bulgaria, at a special news conference, which announced that the General Assembly of Confindustria Balcani, the union of Italian business associations in the Balkan countries, will take place in Sofia on October 13, 2010.

"The fact that we chose the Bulgarian capital Sofia for the meeting of Confindustria Balcani demonstrates Bulgaria's major role in the region, the dynamics of Italian companies working in the country, and its economic potential," Bartocci said.

Data of Confindustria Balcani shows that there are currently 800 Italian businesses that are active in Bulgaria. On this criteria, Bulgaria ranks second in the region after Romania, which boasts 4 000 Italian companies - a development seen much as a result of the fact that firms from Northern Italy started outsourcing some operations in Romania as early as the mid 1990s. Albania and Serbia come in next with about 300 active Italian businesses each.

Confindustria Bulgaria, which unites about 200 enterprises representing a total investment of EUR 2 B, with an annual turnover of EUR 1.3 B, and 20 000 Bulgarian employees, expects that by 2020 the number of Italian companies operating in the country will grow by 20-30% reaching at least 1000.

"Thinking about the Balkans as an organic and integrated reality is one of the keys for the future development of the countries from the region, which presents a strategically important market on the European and global stage. Italian entrepreneurship wants to play a central role in this development," Bartocci declared.

Topics related with Italy's investments and trade in the Balkans will be the focus of the general assembly meeting of Confindustria Balcani in Sofia on October 13. The meeting will be attended by representatives of Italian business associations and companies active in Romania, Bulgaria, Albania, Serbia, Croatia, Montenegro, Macedonia, Bosnia and Herzegovina.

Source: Sofia News Agency

Luxury complex to be built in Bulgarian nature reserve

Steph Engall — Thu, 30 Sep 2010 12:47:00 GMT

Bulgarian authorities have given the all clear for a luxury resort complex to be built in the Karadere nature reserve...

The decision was reportedly made by the Bourgas Regional Inspectorate for Environment and Waters (RIOSV) on September 15 2010. It says that the decision advises that the construction process should "not disturb the bird population in the areas, and so should be done outside the breeding season or April - July"

The main investor in the planned construction was Darmatex Bulgaria, owned by offshore company Darmatex, registered in Malta. The construction is to commence in the area of Sveteritsa, immediately above a protected reserve. The complex will consist of 20 buildings with a total capacity for 200 people.

According to RIOSV Bourgas, the proposed construction was in the middle of a protected area which was part of the Natura 2000 network in the Kamchiiska Mountain.

Moreover, there had been "perpetual interest for new construction in the untouched and unspoiled areas around Karadere in the past several years among various investment companies," Dnevnik said.

Previously, the Madara Bulgarian Property Fund, listed on the London Stock Exchange, wanted to build a resort village, spanning the entire bay area. The controversial building project contemplated to be directly on the shore was eventually frozen indefinitely in the light of the global economic downturn, as the company had estimated that the scheme would cost about a billion euro.

Source: The Sofia Echo

False signatures suspected in 3000 Bulgarian property deals

Steph Engall — Tue, 28 Sep 2010 15:11:00 GMT

Investigations into more than 3000 municipal property transactions in Sofia signed between 2006 and 2008 are being carried out due to suspected fraudulent signatures of its former mayor...

Anton Stefanov of the Sofia City Prosecutor's Office, who is overseeing the investigation, told this to mass-circulation daily Trud.

In February, Dnevnik said that prosecutors had established that more than 100 municipal properties had been acquired illegally through the use of fake signatures, false documents and seals.

The investigation began in November 2008 after the arrest of Petar Drashkov, brother of the deputy head of the State Agency for National Security, Ivan Drashkov.

Petar Drashkov was arrested after transferring municipal land in Strelbishte neighbourhood to his company Sida-S, by faking Borissov's signature.

Stefanov said that five of the municipal properties checked so far had been stolen using fake signatures of Borissov, who since July 2009 has been Bulgaria's Prime Minister.

Source: Dnevnik.bg

Bulgaria Plans Cultural Tourism Drive

Steph Engall — Mon, 27 Sep 2010 14:34:00 GMT

Bulgaria is looking to spark life into its tourist sector with a concerted plan to leverage history and culture to attract visitors...

Bulgarian ministers, archeologists, businessmen and tour operators joined around these ideas on Sunday, during a national debate on the culture tourism, organized by the Bulgarian daily "Standart," held in the Arena di Serdika hotel in downtown Sofia.

The Minister without portfolio for Bulgarians Abroad, Bozhidar Dimitrov, who is also a renowned historian, explained Bulgaria suffers from the poor management of its historical tourist sites where the State has abdicated its responsibilities, leaving their running to local municipalities, which often are careless about them and fail to reinvest the revenues.

According to Dimitrov, the difference between Bulgaria and Italy and Greece is that the country's culture heritage is underground and in the form of ruins, for this reason it must invest not only in archeology excavations, but in restoration, conservation, and infrastructure.

The Minister also pointed out the lack of adequate advertisement both on the part of archeologists and tour operators continues to be a huge problem for the country's tourism, and gave as an example author Dimitar Nedkov and his bestseller "The Bulgarian's Sign," which after appearing on bookstands increased revenues and visits at the Zemen Monastery over 5 times.

One of Bulgaria's top archeologist, Prof. Nikolay Ovcharov informed the country has about 43 000 registered historical sites and archeology now draws a larger number of tourists, pointing at the famous Thracian rock city and sanctuary of Perperikon attracting 250 visitors per year compared to 0 just 10 years ago.

Sofia's Mayor, Yordanka Fandakova, reported there is a plan to display the relics of St. John the Baptist in Sofia, after they travel abroad, adding the relics will attract not only Bulgarian visitors but pilgrims from Greece and Serbia.

The "Standart" Editor-in-Chief, Slavka Bozukova, informed representatives of the Bulgarian Orthodox Church have been invited to the discussion, but for unknown reasons did not appear. Bozukova voiced hope the clergy would allow the relics to be transported to Sofia for the Day of the Christian Family.

Source: Sofia News Agency

Bulgaria prices on the wane

Catherine Deshayes — Wed, 15 Sep 2010 07:34:00 GMT

Property prices in Bulgaria are experiencing a significant fall, which could help people looking for property in Dobrich or Sofiya property find a bargain...

According to research from Colliers International, some regions have seen prices drop by as much as 19 per cent year-on-year and when coupled with the strength of sterling against the Bulgarian lev, this creates a real opportunity for investors.  

As well as providing good value, Bulgaria is also a popular destination with property buyers, ranking in Prime Location's top ten searched-for countries by UK residents.  

It was recently reported that people looking to buy property in Bulgaria may soon have more choice, with figures from the National Statistics Institute highlighting that the property construction industry grew 46 per cent in the second quarter of 2010.  

Bulgarian property building permits rose by 46 per cent, while actual construction of homes in Bulgaria increased by 70 per cent, according to the report.

Source: www.propertyshowrooms.com

Bulgaria beats Bondi in travel poll

Catherine Deshayes — Thu, 05 Aug 2010 07:31:00 GMT

We're all going on a summer holiday. To sunny Bulgaria. Or possibly to Tunisia. But we definitely aren't going to Brazil. And we certainly won't be visiting Australia...

At least, that's the case if you believe the curious results of a new poll that lists British travellers' favourite beaches across the globe.

he survey, conducted by YouGov and the Centre for Economics and Business Research on behalf of online shopping site Kelkoo, picks out Bulgaria's Black Sea coast as the stretch of sand most popular with UK tourists - but offers a damning indictment of the celebrated shoreline around Sydney, which falls over the line in a surprising 20th place.

However, there is a sensible explanation for Sydney's failure. The survey ranks the beaches according to a number of factors - including the price of flights to reach them.

Other factors include the cost of accommodation, attractions in the area, the exchange rate, weather and safety. The latter worry would also explain why Rio De Janeiro, a city famed for beaches such as Copacabana and Ipanema, and the party lifestyle played out upon them - but also tarred with a reputation as a crime hotspot - is ranked a lowly 19th.

At the opposite end of the scale, northern Tunisia is an unexpected hit, coming in second behind Bulgaria - with Turkey a rather more predictable presence in third.

Affordability is revealed as the key issue when it comes to booking a beach break - 85 per cent of those surveyed say it is their top concern, with security (81 per cent), weather (78 per cent) and good food (77 per cent) also deemed to be of critical importance.

"In the current climate, British holidaymakers seem to be more cost-conscious than ever," says Bruce Fair of Kelkoo UK. "Criteria that matter most seem to be value for money and affordability."

Elsewhere in the poll, Cornwall slumps to a disappointing 14th - the perceived high costs of a week in the south-west outweighing ease of access. Egypt's beach enclave Sharm El Sheikh fares best when it comes to climate, thanks to its 13 hours of sunshine per day.

Source: www.dailymail.co.uk

Bulgaria property: a look back

Catherine Deshayes — Fri, 11 Jun 2010 11:14:00 GMT

Real estate remains the best long term investment prospect in Bulgaria even as prices continue falling and analysts predict further declines in the coming months...

The country's leading real estate consultancy, Address, points out that values have increased by more than 300% over the past decade, and as such, the sector remains the soundest investment in Bulgaria.

‘Regardless of the decline in value over the past two years, Bulgarian real estate remains the best form of investment,' it said in a statement reads. It also revealed that based on actual transactions prices are down a further 14.5%.

Tsvetelina Tasseva, chief executive of Address, said that sellers are hanging onto their property rather than accepting lower prices. ‘Most vendors are poor, people who rely on a minimum monthly income and their house is their only real asset. This is why they are reluctant to part ways with their property at any price. On the contrary, they wait it out, hence most of the best property in the country remain on the market longer as people seek better offers,' she explained.

According to Address, substantial discounts are still available on the market. A flat of about 90 square meters in the centre of Sofia was recently sold for only €50 000, a 45% markdown on the original asking price. In the elite Sofia borough of Lozenets an apartment was sold recently for €58 000, down from the initial asking price of €78 000, representing a discount of about 35%.

Address also reveals that towards the fourth quarter of 2009, demand increased by about 7% and continued upwards until April when it slumped by about 15%.

It is clear that prospects for the real estate market in Bulgaria remains uncertain for 2010 and even into 2011. According to some agencies the bottom has been reached and values can only increase. But others such as Foros, Colliers, Address and Bulgarian Properties, real estate values will continue to depreciate until the end of June. They are talking in terms of another 10% decrease followed by stabilisation. Other property agencies like Aristo, Yavlena and B&H, however, argue that the bottom of the market was reached in March and April.

Source: www.propertywire.com

Sofia leading Bulgaria recovery

Catherine Deshayes — Fri, 21 May 2010 10:01:00 GMT

Bargain prices, a good choice of supply and more suitable credit conditions are poised to help lift the real estate market in Bulgaria out of the doldrums, according to analysts...

Although they expect some price falls generally they are predicted to stabilise in the second half of 2010 and the market return to normal within the next 12 to 18 months.

Sofia, the country's capital city, is likely to lead the recovery, according to Tatyana Emilova, manager at Colliers International Bulgaria. The company's latest research shows that prices have fallen 3% in the first three months of the year as the market moves towards bottoming out.

According to Colliers all markets have been affected by the property downturn and in Sofia the average yearly price decline was 20%. It found that after an almost complete stand still in the first few months of 2009 demand started to pick up in the autumn driven by an increase in mortgage availability and falling interest rates.

Falling prices and developers willing to be more flexible with potential buyers in terms of price and payments has added to demand, she explained. Generally, financially dependent developers are ready to sell at reduced prices with some even offering price levels that are close to the construction cost of the project.

The recovery is likely to come at the lower end of the market. ‘Generally buyers have limited budgets and are reluctant to increase them. Our experience shows that the majority of the demand is focused on properties priced below €1,000 per square meter for a fully finished product. Transactions rarely take place before construction is completed or close to completion,' she said.

Price falls also mean that those who are looking can afford a larger property and others who could not afford to buy and now actively seeking small one bedroom apartments. Buyers preferences have changed.

‘In general, buyers are very well informed now and have become much more demanding and selective when it comes to choosing their home. They are seeking for an optimal balance between price and quality and environment and neighbourhood is also important,' said Emilova.

Colliers expects few projects to be launched this year and prices are expected to stabilise in the second half of the year. ‘We can expect normalization of the market during the second half of 2010, as bank financing will become more active, and demand will continue picking up. The most active buyers will still be the ones in real need of a new property and with cash,' she said.

Developers will continue offering competitive prices and other solutions to match clients' needs. Provided the overall economic situation in the country is stable, we can expect a full recovery of the market within 12 to 18 months,' she added.

Source: www.propertywire.com

Bulgaria: demand for small homes

Catherine Deshayes — Fri, 30 Apr 2010 09:46:00 GMT

Demand for smaller real estate in Bulgaria could increase this year as the number of small properties being built has fallen so much that there is not enough supply, it is claimed...

Small studio flats priced at around €25,000 have been accounting for 34% of total sales in the country's real estate market but few new projects are due for completion, according to property consultancy Address.

‘The supply of such types of studios is decreasing while new construction for the moment is rather dormant. This is likely to create a demand that is likely to surpass initial forecasts,' said marketing manager Kaloyan Bogdanov.

Buyers are bargaining hard and in 87% of cases they are asking for discounts on asking prices. In the first three months of the year the average discount amounted to €3,000.

The agency sellers are being urged by banks to keep the prices high but have to make discounts if they want to sell or risk losing buyers. On average, the discounts amounted to about 5% of the asking price.

The real estate market shows no sign of recovery yet, the agency continued. It reckons that a mild rise in values in local real estate is not to be expected until the third, or perhaps even the fourth quarter of 2010 because of the economic situation.

Other agencies think that the bottom has been reached. Aristo is even forecasting a 10% increase in prices by the end of 2010. But according to agencies such as Foros, Colliers, Address and Bulgarian Properties, real estate values will continue to depreciate until the beginning of June. They reckon on a further 10% decrease followed by a stabilisation in prices.

And according to Industry Watch, real estate values are likely to drop by another 10% due to the weak influx of foreign capital and delayed bank credit in Bulgaria and the fact there is no sign of foreign investors returning to the market.

Bulgaria was once a favourite of overseas buyers especially from the UK, Ireland and Scandinavia. From 2006 to 2008 foreign investment in Bulgarian real estate accounted for more than €2 billion while in the preceding three years it was about €300 million a year.

But since the global economic downturn the flow has stopped. real estate in Bulgaria's largest cities and towns recorded an average decrease of about 28% in the third quarter of 2009, compared to the previous year, according to figures from the National Statistics Institute (NSI).

In light of the economic crisis in Bulgaria and rising unemployment, the number of potential buyers in the country is only likely to decrease throughout 2010.

Source: www.propertywire.com

Bulgaria: Hope on the horizon?

Catherine Deshayes — Fri, 19 Mar 2010 10:52:00 GMT

According to the latest figures released by Eurostat, the Bulgarian economy is still most certainly heading downwards, but there are some signs of hope on the horizon.

Eurostat figures show that Bulgarian GDP shrank a further 6.2% in the fourth quarter of last year. This came on top of a 5.4% contraction in the third quarter, and a 4.9% contraction in the second quarter.

The signs of hope are the fact that Bulgarian industrial output grew by 4.9% in the fourth quarter after a similar slew of declines. During this recession, a quarter of such strong growth in industrial output is usually followed by a GDP growth in the following quarter.

A further sign of hope lies in the fact that Eurostat also found that Bulgarian labour costs rose fastest in the EU, with a growth of 11.3% in the fourth quarter -- Bulgarian wages are known as being among the lowest in the EU, and so such a growth can only be seen as a good thing.

Wage growth is also known to be a key driver for house price growth, and while one quarterly result is meaningless to this measure, further growths could very well prove beneficial for the housing market.

Bulgaria's housing market has been one of the worst affected by the international downturn, largely because over-development had caused a strain in touristic areas beforehand. In recent months there have been reports that foreign buyers are actively looking at Bulgarian property again, including a reported 50% increase in searches for property in the country from Primelocation. If these reports lead to sales this would definitely help to turn the economy around.

Source: www.novinite.com

Bulgaria: Fightback ‘begins in April'

Catherine Deshayes — Tue, 16 Mar 2010 09:14:00 GMT

Bulgaria's economic recovery will start in April 2010, according to Tsvetan Simeonov, Chair of the Bulgarian Chamber of Commerce and Industry.

"Bulgaria's economy has seen harder times. If the GERB party lives up to its campaign promises - not to increase taxes, to reduce the administration - we are not going to be in the situation of some of the neighboring states," Simeonov told Pro.bg TV apparently referring to the situation in Greece.

Simeonov has slammed the Borisov Cabinet for its policy to delay payments it owed to private companies, and to pay immediately only to those who give up 10% of the state debt to them.

The Bulgarian Chamber of Commerce and Industry, together with the major trade unions, have insisted that the government publish a schedule of paying out the money it owes to private businesses that executed public procurement orders. This would allow the firms to apply for credits, Simeonov said.

In his words, when drafting the 2010 budget, the government did not take into account the possible drop in the level of revenue which occurred in the first months of the year.

The BCCI favors strongly the idea of the Finance Minister, Simeon Djankov, that state employees should pay their health insurance on their own because this will improve the equality in the labor market.

Source: www.novinite.com

Bulgarian ‘optimistic' over tourism

Catherine Deshayes — Mon, 15 Mar 2010 13:53:00 GMT

Bulgaria's Deputy Minister of Economy, Energy and Tourism, Ivo Marinov, traveled to Germany Friday to present Bulgaria as a year-round tourist destination at the International Travel Trade Show, ITB.

The largest tourist expo, ITB, opened in Berlin Tuesday with the participation of over 11 000 companies from 187 countries.

Marinov told perspective travelers that beach vacations, ski trips, ventures to cultural and historical sites, SPA and Wellness, are only a fraction of possibilities that await them in Bulgaria.

The Deputy Minister stated that the good price - quality ratio makes Bulgaria a very attractive destination, pointing out the Bulgarian tourist market is stable, with fair accommodation and entertainment pricing.

The Chair of the German SPA Association, Dr Sigrun Lang, was a special quest of the presentation, voicing support for Bulgaria's desire to introduce international standards for its SPA services. Lang said Bulgaria has great potential for developing SPA and Wellness tourism, combining beautiful nature and good quality hotels, adding the introducing of standards in line of those of the European SPA Association will improve the country's image and attract more visitors.

Marinov pointed out the process of aligning standards is included in the Amendments of the Tourism Act.

Bulgaria's Deputy Minister further informed he had discussed with Ernst Burgbacher, Parliamentary State Secretary at the Federal Economy Ministry, the possibility of the German Health Insurance Fund to cover expenses for German citizens, who use rehabilitation procedures at Bulgarian SPA resorts.

In 2009, 740 000 German tourists have visited Bulgaria - 28% more compared to 2008.

Marinov says that a change from the last 2 years would be the reduction of last minute trips - a sign travel is stabilizing.

The number of visitors wishing to visit Bulgaria around the Easter holiday is up, while tour operators expect a 15% increase of the number of German tourists in 2010. Between April and November, charter flights will serve 30 German airports with connections to the one in Bulgaria's second largest city of Plovdiv.

Bulgaria is further starting in April an advertisement campaign across Germany with the airing of TV video clips, print ads, and billboards.

www.Novinite.com

Sell your Bulgarian property to Russian investors

Catherine Deshayes — Fri, 12 Mar 2010 11:58:00 GMT

During the overseas property boom, Bulgaria was seen as a major hotspot, with thousands of British investors buying property along the Black Sea and its renowned ski resorts. However, without an established second-hand resale market, there are few options for owners who want to sell their properties.

This is where niche Investment Company Appreciating Assets have been making their name helping British and Irish property owners sell their properties into the booming Russian market, who are one of the few nationalities who are still buying property in Bulgaria.

Originally from Ireland, Appreciating Assets has just opened an office on London's Oxford Street in order to cater for the growing demand for their services from British property investors. The company first made their name developing warehouses and industrial sites along the Trakia Highway, Bulgaria's equivalent of the M1.

Their approach is simple: they match willing sellers with buyers who are still seeking to purchase property there - which in Bulgaria's are the Russians. They are the first company in Britain providing a real exit strategy for property investors in Bulgaria.

Appreciating Assets' Managing Director, Dylan Cullen says: "The big problem with the property market in Bulgaria is that these days the buyers are mostly Russian and the sellers are mainly British or Irish; the Russians don't buy off plan as they see it as too risky and with no established second-hand resale market it is difficult for buyers to find sellers and vice versa. So we're helping solve this issue by connecting British sellers to Russian buyers."

This practical approach is showing results, they have helped sell over 200 properties in the last year.

Cullen, talks about the natural affinity Russian investors have always had with the Black Sea: "Bulgaria is to Russia what Spain is to Britain. Whilst the famous oligarchs are known for their lavish lifestyles not all Russians can afford to spend the winter on the ski slopes of Courchevelle or lounging on San Tropez's Plage de Tahiti. For most Russians, affluent enough travel abroad, Bulgaria is their natural choice. Only three hours flight from Moscow, and with Russian widely spoken, the Bulgaria provides both snow and beach breaks for the many Russians who spend their holidays there."

Bulgaria's relationship with its nearby giant bodes well for future economic success, Russia has a very robust economy that has not slipped into recession; so Russians are still holidaying abroad and still very active in the Bulgarian property market.

The IMF has forecast that by 2013 Russia will be the second largest economy in Europe in terms of purchasing power - making it one of the world's fastest growing economies in the world. Our links with the Russian market make us the best placed Irish company to help property owners take full advantage of the opportunity this growth presents.

Appreciating Assets also offer British and Irish investors property insurance and finance packages to help investors furnish their properties. With offices in Dublin and Sofia and now London, and their website also in Russian, Appreciating Assets Ltd can be contacted on 0207 903 5093 or via www.appreciatingassets.ie.

Hotel boost for Sofia

Catherine Deshayes — Fri, 12 Mar 2010 11:22:00 GMT

The first Bulgarian hotel from the UK-based budget chain easyHotel is opening doors in Sofia, the company announced.

The latest addition to the easyHotel portfolio, easyHotel Sofia, is the 11th property to be opened by the brand and their first new build hotel.

The hotel in downtown Sofia has 57 rooms on 9 levels. The investment is estimated at BGN 900 000. Prices start at EUR 10 per night.

The "easyHotel" chain is the first international company for budget hotels in Bulgaria. The chain is part of the "Easy Group" holding, which already operates budget flights in the country.

The hotels offer low prices for basic services such as accommodations and room cleaning while customers pay additional fees if they wish to order internet services, TV programs and others. The reservations are made entirely online with earlier reservations having lower prices, modeled after the budget airlines' policies.

For property investors visiting Bulgaria for viewings, this new, cheap accommodation could come in very handy.

Source: www.novinite.com

Bulgaria: Top tips for 2010

Catherine Deshayes — Thu, 11 Mar 2010 09:27:00 GMT

Navigating the Bulgarian property market can be challenging at the best of time, but Quest Bulgaria has provided some top tips to help with the property hunt.

Currently prices are dropping a little but stabilisation is starting to appear. Although nobody can tell you exactly when the market will start to recover, make your decision whilst things remain in the purchaser's favour.

What do you want?

Make sure that you are clear about what you want to buy, both in terms of the type of property and how much you can afford. Don't forget to include all fees in your budget, so that you know what your total price is. Think about what you really want from the property - no neighbours? miles from the shops? huge renovation work and costs with no language? ...

Finances.

Get your finances in place before you go viewing properties. If you are not in a position to buy, then be straight with the agent and tell them. They are unlikely to help you again if you waste days of their time when you cannot buy but may want to use them again later. Don't tell the agent you are a cash buyer if you need to raise finance. Again, be clear with them and endeavour to get approval for a mortgage in writing. This will help you negotiate on the price of the property. If you really are a cash buyer then you are a very desirable person to the vendor: make use of this.

Location

Bulgaria is very diverse and you'll need to do lots of research to decide where you want to buy. Visiting different parts of the country which you have shortlisted will pay dividends and reduce the chances of making a mistake. Look at where the locals are buying as a good indication of good areas. This also means the property market in that area is supported by Bulgarians, making it easier to sell should you wish to do so. Check out shops, restaurants and other facilities. For a holiday home or for living permanently, amenities are important.

The property

Take a good look at whether you will be able to cope with all those old barns or that massive garden. Both require maintenance. If you are thinking about converting the barns, take the cost of this into consideration and do your sums. It may work out more expensive than you think, so don't overspend on buying in the first place.

When to view

Many view properties whilst on holiday during the favoured months of July and August. But with the sun shining and blue skies, you can easily get carried away. Try viewing in the less busy months, during spring and autumn for a better idea of the property. At that time of year, you might pick up a better bargain too!

Prices

The resale market in Bulgaria is not mature. Therefore you may easily see a property advertised with several agents, all at different prices. Sometimes this is down to the commission the agent is charging - but, all too frequently, it is down to the vendor changing their mind on how much they want. Look at a good cross-section of properties to help you assess a realistic and fair price. Don't go for a cheap property just for the sake of it; this could be false economy.

Bulgarian v British

Don't be put off contacting a Bulgarian agent because you cannot speak the language. It is easier, of course, to speak in your mother tongue but you never know; that Bulgarian agent may have just the property you are after. Most Bulgarian agents speak good English anyway.

Private sales

Many expats are returning to Britain due to money constraints, brought on by the fall of the British pound. Often their properties have been well renovated to standards you expect. Sellers are well aware of the low market and the majority have revised their prices downwards by anything from 30 to 50%. You may well find a fully renovated property at the price of something needing considerable work and expense and, of course, there is no language barrier either.

Be prepared but do not hurry

Be prepared to buy when you go viewing but don't hurl yourself full tilt into buying in a rush. This is a big investment, so reflect and check everything out.

Lawyer

Get your own independent lawyer. The agent may well recommend but you should really select a lawyer who will act solely in your interests. Also, read everything for yourself. Get all documents translated by a registered translator in writing.

Rentals

If you are planning on renting your property be cautious on how much rental return you are likely to achieve. There are plenty of rental properties available in Bulgaria for holiday-makers and even in a popular area you may not be able to rent the property for as many weeks as you think. Avoid taking a mortgage on a property where you are relying on rentals to pay the monthly installments.

Currency

It is worth contacting currency brokers to see how they can help you make the most of your money when transferring this into a foreign currency. It can make thousands of pounds of difference.

Source: www.questbg.com

Life's a beach in Bulgaria

Catherine Deshayes — Wed, 10 Mar 2010 09:21:00 GMT

Bulgaria's Government will shortly approve a new strategy for development of the country's beaches, which - according to one Minister - will include lowering the cost of concessions and rentals.

Rosen Pleveneliev, Minister of Regional Development, made the announcement on Tuesday at a meeting with the Confederation of Employers and Industrialists in Bulgaria.

Plevneliev said government approval would be within 10 days and that the first new concession procedures would start within one month. The Minister estimated that prices would become up to 30% lower than their present levels.

"I will not hide from you that after these competitions there will be beaches without concessionaires and leaseholder," he warned, however. According to the Minister, about 100 beaches are free at present.

Under the new strategy for beach rentals and concessions, some of them will be handed over to the regional governors to rent them out.

"Our goal is to have stable concession contracts with clear rules," the Minister stated.

Source: www.novinite.com

Bulgaria ‘showing signs of recovery'

Catherine Deshayes — Mon, 08 Mar 2010 11:31:00 GMT

Bulgaria's economy could be about to start recovering from the recession, according to a new report by Sofia-based Institute for Market Economy (IME).

The IME has pointed in the first place to the rising increase of Bulgaria's export in November and December of 2009, and to the 14,3% increase of foreign tourists in the country in January 2010 year-on-year.

The report stresses the fact that Bulgaria's relatively low-priced tourist packages and the improvements of the country's resorts may be cause of this increase - which includes more tourists from all major source countries for Bulgaria - Greece (13% more tourists), Russia (32%), Serbia (33,8%), Macedonia (28,4%), Finland (7,8%), Romania (7,4%), UK (6,1%), Sweden (4,9%), and France (4,8%).

The IME says that it is still not clear if the low prices are key for picking Bulgaria as a winter holiday destination, and that the effects of the global economic crisis on these decisions could be evaluated in 1-2 years.

The think tank also mentions the data of the National Statistical Institute about the business climate of the Bulgarian economy showing that it has retained its January levels in February. Bulgaria's industrial sector registered a 0,4% improvement of its business climate index, which could be interpreted as the basis for a relatively optimistic forecast.

The IME analysis emphasizes the hopes that Bulgaria's industrial production is going to hit the bottom very soon, and is then going to start to recover - most likely in the second or third quarter of 2010, depending on the foreign demand for Bulgarian-made products.

The data about the business climate in retail sales - a 2,2% growth in February - also suggests hopes for the start of a recovery.

The IME believes that Bulgaria's economic recovery will begin from the sectors depending on foreign demand because the recovery in Bulgaria's major trading partners in Western Europe is going to happen sooner. Central and Eastern European markets are also seen as a potential driver of Bulgaria's recovery.

The analysis points out that the gloomy forecasts of the IMF and EC about the effects of economic crisis on Eastern Europe have failed to materialize.

Source: www.novinite.com

Bulgaria ‘more flexible' in 2010

Catherine Deshayes — Thu, 04 Mar 2010 13:16:00 GMT

The global economic downturn will have a positive effect on the Bulgarian property market in 2010, claims one real estate agency.

Bulgarian firm ELTA Consult predicts that prospective buyers of a flat or a second home in Bulgaria will benefit from the crunch, and collapse in prices, and will be able to secure a good deal. Accordingly, this will make the market considerably more flexible that it was in 2009.

A spokesperson for the firm commented: "certain resurgence in the market was observed in the last quarter of 2009 when more deals were processed. The stimulus has come from real estate losing an average of 15 per cent of its value."

A similar prognosis emanated from Tihomir Tsakov, manager of Bulgarian real estate agency Aristo, who said that housing property prices in Bulgaria will hit rock bottom by the middle of 2010. They will then stabilise before picking up, rising by at least 10 per cent by the end of the year.

This forecast is reinforced by other projections made by other major real estate agencies such as Colliers, Address and Foros, which expect the fall to continue throughout the first half of the year, tumbling by 10 per cent before settling.

Aristo estimated that the Bulgarian housing market has reverted to 2004 levels in terms of deal numbers bearing in mind that only about 200 000 transactions took place in 2009.

Regarding new construction projects, ELTA Consult say that the market is still severely affected. Construction entrepreneurs are currently limiting themselves to offloading units that have already been finished. Until those houses and flats are sold, it is unlikely that new construction will be contemplated.

Additionally, "they are willing to offer hefty discounts", the report says.

Analysis from ELTA Consult regarding reluctance to begin new construction is also backed by Eurostat data which reveals that permits for real estate construction in Bulgaria fell by 45 per cent in the fourth quarter of 2009, totalling 69.9 per cent fewer apartments compared to the third quarter.

Concurrently, permits for construction of administrative buildings were down by 37 per cent.

In the last quarter of 2009, a total of 1343 residential buildings were approved for construction, totalling 3900 flats, according to data from the National Statistical Institute. The port city of Bourgas topped the chart with 155 new buildings approved, followed by Sofia with 150 and Plovdiv with 143.

The most apartments, however, would be built in Sofia - 773, followed by 604 in Varna.

Source: www.propertywisebulgaria.com

Bansko brits on the warpath

Catherine Deshayes — Tue, 02 Mar 2010 02:21:00 GMT

UK investors are preparing to stage a rally in the Bulgarian winter resort of Bansko over alleged property fraud carried out by a local firm.

Some 70 British families have paid over GBP 6 M in total for apartments in the All-Seasons holiday complex in Bansko but have been denied access to their properties, the Mail on Sunday has reported.

The Brits plan to gather in Bansko in order to demand to be let in. They bought the apartments through a London real estate firm, Rockarch Estates.

However, Rockarch Estates claims it was cheated by a Bulgarian partner, a Bulgarian woman who is said to have transferred ownership of much of the complex to a Bulgarian firm called Zekom owned by Roman Romanov.

In July 2009, the Struma Daily based in the Southwestern Bulgarian city of Blagoevgrad, not far from Bansko, reported that the owner of Rockarch Estates, Reneta Katchashka, has filed for an investigation against her former business partner, Nadya Sabeva, who is said to have transferred the ownership of 29 apartments, a pool, a spa center, and restaurant from the All-Seasons complex by using fake documents.

Katchashka told the Struma Daily that Sabeva was her partner in the All Seasons Complex from 2004 till 2008, and that in 2008, she forged her signature and had a notary public conduct a deal transferring the ownership of the flats in question to the firm named Zekom.

She also claims that the owner of Zekom, Roman Romanov, was presented to her in 2006 by Sabeva as a general from the Bulgarian intelligence services. Subsequently, in 2008, Romanov began to pressure her to hire his firm to guard the complex in Bansko.

According to Katchashka's account in the Struma Daily, in February 2009, she and her family received death threats from Romanov.

Source: www.Novinite.com

All roads lead to Bulgaria

Catherine Deshayes — Mon, 01 Mar 2010 11:05:00 GMT

In good news for future property investors, the World Bank has stepped in to help Bulgaria modernize its creaking road system.

Bulgaria's Prime Minister, Boyko Borisov, and the Director of the World Bank for Central Europe and the Baltic countries, Peter Harold, have held talks regarding road reconstruction and modernization.

Borisov, Harold, and the permanent representative for the WB in Bulgaria, Florian Fichtl, discussed assistance in the areas of analysis, consultancy and investments to help modernize road infrastructure in Bulgaria - one of the top, strategic priorities of the government.

A spokesperson for the WB explained: "The development objective of the Road Infrastructure Rehabilitation Project will be to assist Bulgaria to reduce road transport costs by improving the condition and quality of its roads network during the first years of EU accession".

The Project includes three components:

(i) rehabilitation of about 450 kilometers of Class I, II, and III roads;

(ii) technical assistance for the National Road Infrastructure Fund to develop its capacity in planning, programming, and project execution;

(iii) technical assistance and other activities to support Bulgaria's objective to improve road safety.

Source: www.Novinite.com

What's next for Bulgaria?

Catherine Deshayes — Mon, 08 Feb 2010 11:17:00 GMT

Banks could hold the key to what will happen with Bulgaria's depressed real estate sector in 2010, it is claimed...

There are concerns that if they decide to start selling foreclosed properties this will lead to prices falling even further.

Along with foreign real estate investors banks have had a major impact on the country's property market offering low interest rates at a time when home ownership was encouraged.

But the global economic downturn has meant a drop in incomes and led to a rise in loan defaults and foreclosures, according to Address, one of Bulgaria's leading real estate companies.

The banks have been trying to stay away from an overall policy of foreclosing, but if 2010 proves to be a more difficult year than 2009, banks might change this policy and appear on the market as one of the big players.

‘If banks start selling foreclosed properties in search of quick returns there is a serious risk that the property market could collapse altogether,' said a spokesman.

According to its statistics, prices in 2009 dropped by 28% on an annual basis, with 47 % of buyers paying in cash, while 22% of deals were financed with bank loans.

The concerns come at a time when analysts are predicting further price falls in the Bulgarian real estate market. According to Colliers International prices could fall by another 10% in 2010 although it predicts that prices will stabilise in the second half of the year.

In 2009 real estate prices dropped by about 20% on average nationwide, compared to 2008 figures, according to Colliers data.

Some analysts believe that there would be an increase in demand prices and meet buyers expectations of finding a bargain. The worst hit sector has been new builds along the coast and in the ski resorts. There are also a lot of so-called distressed sellers who are forced to sell at levels even lower than 50% of values.

Stephane Lambert of Stara Planina properties reckons that on average prices have fallen by approximately 35%, based on actual sale prices not asking prices. ‘This is important to highlight because many properties are still marketed at pre-crisis prices and there is a margin for negotiating down the asking price,' explained Stephane.

Source: www.propertywire.com

Cash buys outlawed in Bulgaria

Catherine Deshayes — Wed, 18 Nov 2009 12:11:00 GMT

As of January next year, all property transactions in Bulgaria must be carried out via bank transfer, according to new rules to be introduced by the Justice Ministry - and there is hope that the new rules will help to reduce property fraud and money laundering, as well as ensuring that all fees and taxes owing to the state are paid...

An amendment to the country's Notary Act is in the pipeline and is expected to be approved by Parliament before the end of the year. Cash buys will then be outlawed as of January 2010.

Whilst the change to buying and selling was first mentioned a year ago as part of a bigger plan to reduce corruption in the property sector, it is only now starting to come to fruition.

As well as reducing corruption, it also aims to ensure that all fees and taxes owed to the state are paid, through the creation of a State Depositary Bank which would serve as a guarantee for all payments in the form of the state acting as custodian for deposits.

The legislative changes will require that both the vendor and the buyer specify their bank accounts for conducting a property deal. Alternatively, they could use the account of their notary public.

The conditions for depositing money into bank accounts as part of the deal will be specified by the respective sides in written agreements.

These legislative changes are seen as the first step to an all-out regulation of payment in purchase deals through a special law to be called Deposit Account Act.

There is also hope that the new laws may inspire more confidence from overseas property buyers.

But, there are risks to this new system, as sellers and buyers may want to avoid the new fee charged by the bank for servicing the transactions.

Thus, they may agree a lower price for the official transaction and then do a cash deal privately. This is common in France where the new system planned for Bulgaria is already in use.

Justice Minister Margarita Popova and Finance Minister Simeon Dyankov said they are confident that the bill will be approved by the end of the year.

Check out properties for sale in Bulgaria before the hoards descend in January at http://bulgaria.themovechannel.com/

Picture by kevinzim

Bulgaria: price drop

Catherine Deshayes — Wed, 04 Nov 2009 12:05:00 GMT

The average price of a residential property in Bulgaria dropped by 5% in the third quarter of 2009, according to the latest National Statistical Institute data - the price fall in Q3 was slower than the drop recorded in Q2, when values fell 10% quarter-on-quarter...

The latest quarterly price fall means that the average Bulgarian property has now fallen by 28% year-on-year.

Residential values fell in all regional centres in Q3, with the greatest drop largest drop recorded in Montana (-16.3%), followed by Vidin (-10.1%) and Shoumen (-10%), Sofia (-6%).

The highest priced homes in Bulgaria can be found in Varna (£814sqm), followed by Sofia (£754sqm) and Bourgas (£635sqm).

The cheapest Bulgarian homes can be found in Kyustendil, at £251sqm, according to the National Statistical Institute.

Source: www.homesoverseas.co.uk/news

Bargain basement holidays

Catherine Deshayes — Mon, 14 Sep 2009 12:50:00 GMT

We are always keen to hear the latest bargain holiday destinations, so a new survey by Tesco Travel Money highlighting eastern Europe as a money saving winner will be of interest to many - so lets czech out (sorry) what Hungary, Poland and Bulgaria - which are said to offer the very best bargains - bring to the table...

If you are keen to enjoy a good value holiday (and who isn't?) then word on the street is to check out eastern Europe.

New research by Tesco Travel Money has found that there are some brilliant bargains to be had in countries such as Hungary, Poland and Bulgaria.

The capital of the latter, Sofia, offers particularly good value while one-week holiday expenses in Bulgaria for a family of four are less than in Brighton in England.

And its not just Tesco that tipped Bulgaria is the cheapest holiday destination.

Teletext Holidays' ‘World's Best Value Breaks Report' found that the country was cheapest when measured against a variety of factors, from the cost of flights, food, drink and accommodation, to the quality of accommodation and the weather.

It also found that flights cost an average of £58 and the average taxi journey cost £1.45, while a three course meal with service costs just £7.

As with most of the eastern European countries, Poland has long been synonymous with cheap and cheerful food and accommodation.

A beer in a Warsaw bar is around £1, while a two-course meal with wine can cost as little as £10-£15. A night at the cinema typically costs £3 a head.

Warsaw has been named as one of Europe's most culturally affordable capitals. You can check out one of the Polish National Philharmonic's performances for a mere £9.

A Tesco Travel Money Spokesperson said, "Those looking for a bargain break would be wise not just to look into the cost of travel but also the expenses they are likely to incur once they are there.

"If families really want to holiday on a shoestring then they need to do their research to really make their money go further."

Picture of Gdansk by dtpgreg1

Bulgarian buy-back

Catherine Deshayes — Fri, 11 Sep 2009 12:38:00 GMT

Irish investment company Appreciating Assets Ltd is rolling out its successful buy-back scheme across Britain...

The initiative is aimed at completed properties in Bulgaria owned by British investors.

This is the first overseas property scheme of its type; it provides a long awaited exit strategy for struggling overseas investors. It aims to match sellers with buyers who are currently seeking to invest in the Bulgarian property market.

The scheme was first launched in Ireland at the turn of the year, initially just for properties on the Black Sea, since then the company has experienced a huge response from people wishing to sell their properties and has achieved a very high success rate in finding buyers.

Following the success of this first stage it is now being launched in the Britain and expanded to include Bulgaria's famous ski resorts. Appreciating Assets Ltd has investors registered as part of the buy back scheme who are currently looking to purchase properties in Bulgaria.

Dylan Cullen, Director, Appreciating Assets Ltd, said, "In recent years British purchasers bought a huge amount of property in Bulgaria, mostly fuelled by the low prices on offer there. In the current economic climate it is proving difficult for many investors to sell their properties, but we have buyers available that are willing to purchase immediately.

"So we're asking anyone with a property that they would like to sell to get in touch with us today."

The buy-back scheme addresses the major flaw in the overseas property market in emerging countries, such as Bulgaria, where investors have great difficulty in selling on their properties due to the absence of an established second-hand resale market.

This is mainly due to the high levels of new build properties and the fact that most people who are lucky enough to find a buyer for their property, then find that their prospective buyer cannot get finance. Appreciating Assets Ltd has solved this issue by only submitting properties to investors that have already shown that they are in the financial position to make the purchase.

Property investors from the UK can still benefit from the strength of the euro, which is still as high as €1 - 87p; recent rises have helped offset reductions in property prices, meaning losses by UK investors are currently much less compared to those investors based in eurozone countries, such as the Republic of Ireland. But the pound is expected to strengthen against the euro so property owners would be wise to take advantage whilst they can.

Property owners should call Appreciating Assets Ltd for further details on +353 (0)1 632 8632 or submit their property details on www.appreciatingassets.ie. A UK office is due to open shortly.

Picture by everystock

Bulgaria marches on

Catherine Deshayes — Fri, 04 Sep 2009 10:09:00 GMT

Bulgaria's construction industry is continuing to blossom despite the financial crisis, official data has shown.

There has been a 24% increase in the number of newly constructed residential buildings in the second quarter of the year.

A total of 5 888 new apartments have appeared on the market in the period April-June, which is up by 51% over the first quarter of the year.

The coastal cities of Varna and Burgas lead the ranking with 1 600 and 1000 new apartments respectively. The capital comes in third with no more than 549 newly-built flats, located in 35 residential buildings.

Nationwide, the construction of residential buildings in the second quarter of the year gained 7% over the same period last year.

Source: Sofia Echo

Bulgaria bottoming out?

Catherine Deshayes — Wed, 02 Sep 2009 10:16:00 GMT

The decline in Bulgaria property prices has started to slow down, and the property market will to reach its lowest point in 4 or 5 months, claims one real estate company.

The forecast was made by the Bulgarian real estate website topimoti.bg after analysing data from several real estate companies.

In May 2009, the average price of real estate property in Sofia was 2.8% lower than in April 2009; in June, there was a drop of 1.9% compared to May; in July it was - 1,6% compared to June; and in August - a decrease of only 0,6% compared to July.

Similar trends can be seen in Bulgaria's other largest cities, Varna, Burgas, and Plovdiv.

A spokesperson for topimoti commented: "The policy of some of the Bulgarian banks to restart offering mortgage loans at harsher conditions has had a positive impact on the properties market.

"Companies investing in real estate, however, are still experiencing great difficulties. Along Bulgaria's Black Sea coast the construction businessmen rely mostly on Russian buyers@.

Sofia Echo

What's next for Bulgaria?

Catherine Deshayes — Mon, 17 Aug 2009 11:24:00 GMT

The number of properties being sold in Bulgaria has fallen steeply in the first six months of this year and the volume of new real estate being built is also declining...

A series of new reports from the real estate industry show the full extent of the global economic downturn on the nation's property market and indicate no signs of recovery coming this year.

Real estate transactions tumbled 35% year-on-year in the first half of 2009, according to data from the Registry Agency. The downtrend affected all major cities and seaside resorts, with Sofia, Varna and Samokov region, including upscale winter resort Borovets, collapsing by around 50%. The report blamed lagging investment activity and the global financial downturn.

While the latest report from Raiffeisen Real Estate shows that property sales are down on average by 42% with Sofia transaction volumes down 58%. It also found that sales were sluggish in the once popular Black Sea resort of Sunny Beach.

The negative tendencies started in the third quarter of 2008 and continued to deteriorate in the first half of 2009, according to Ani Angelova, manager of Raiffeisen Imoti and executive manager of Raiffeisen Bank.

'Potential customers at all real estate sectors are waiting, with the only active on the market currently being those with riskier profile, or who are ready to gamble with the prospect of improving their capitalisation for the future,' Angelova explained.

The National Association of Municipalities said that based on contributions to municipal budgets, property deals across the country had halved. Roumen Rashev, mayor of the central town of Veliko Tarnovo, said receipts had slumped by more than two thirds.

Figures from Sofia municipality show that deals in the first six months of 2009 fetched only 30 million leva, compared to 59 million leva in the same period of 2008.

The economic downturn is also affecting the number of property owners who are unable to meet their monthly payments. Figures show that foreclosures crept increased by 36.6% year-on-year and new mortgages shrank almost threefold.

Experts expect the number of new properties being built to drop off considerably because of low demand. Estimates from Acro Real Estate indicate a 25% drop in new construction projects to come onto the market in 2009.

Data from the National Statistical Institute shows that 3,897 new housing units had come to market in the first quarter of 2009 compared with 20,924 for all of 2008.

The number of new building permits granted halved in the first three months of 2009. Developers who have permits are holding off. Acro said this could create a vacuum with no finished new housing units appearing on the market in 2010.

Source: www.propertywire.com

Bulgaria prices head south

Catherine Deshayes — Tue, 28 Jul 2009 11:49:00 GMT

The average price of a property in Bulgaria fell by almost a quarter during the first half of 2009 compared to the same period last year, according to a report on Bulgarian National Radio, citing data from property firm Address...

Address expects Bulgaria property prices to continue to fall throughout the rest of 2009, before potentially starting to stabilise early next year. The report says that in some towns, where property values were overinflated, prices have fallen by as much as 30 per cent.

Areas such as Lyulin, Druzba and Obelya, all of which are located in Sofia, are among those places that have undergone stern residential price corrections.

Some experts project that the Bulgarian property market will continue to struggle throughout the rest of 2009, before stabilising in early 2010.

Source: www.homesoverseas.co.uk/news

Bulgaria set for boom?

Catherine Deshayes — Mon, 13 Jul 2009 11:10:00 GMT

Colliers International projects that the Bulgaria property sector will start to improve in the second half of this year, according to the company's latest H1 2009 reports...

The Bulgarian property market, which was considered to be one of the top property investment destinations in the world a couple of years ago, has since suffered. The country has experience a drastic fall in international demand and a severe oversupply of homes, particularly along the Black Sea Coast.

Colliers data shows that the average price of a home in Bulgaria fell on average by around 14per cent year-on-year in Q1.

The company estimates that prices will continue to depreciate, but at a slower pace in the short term, before stabilising at the end of 2009 or early 2010.

Source: www.homesoverseas.co.uk/news

New Black Sea scheme starts

Catherine Deshayes — Tue, 02 Jun 2009 09:54:00 GMT

AIM-listed property company, Bulgarian Land Development said it has raised sufficient finance to begin work on the first phase of July Morning, its 1m sq ft seaside development in Karvana along the Black Sea coast...

The Bulgarian residential and commercial property developer said this morning that it had ‘sufficient initial deposits from purchasers for units at July Morning to allow the company to commence building a smaller phase one at the site'.

Phase one will comprise a 55-unit apartment block, of which Bulgarian Land has received deposits worth £607,000 on 41 units.

It estimates the sale value of the 41 units at £2.1 million, and the remaining 14 units are expected to earn £607,000.

The 55 units will cost £1.9 million to build, and the company said it will use £1.1 million of cash reserves for the development. Construction will begin in June 2009 with an expected completion date of June 2010.

It was revealed in April that Bulgarian Land, like several AIM-listed companies, is a potential takeover target after its largest shareholder, CLS Holdings, increased its stake to 46.4 per cent.

Source: www.propertyweek.com

Bulgarian forecast 2009

Catherine Deshayes — Wed, 27 May 2009 08:53:00 GMT

Residential property prices in Bulgaria and Romania are set to continue in a steep decline in 2009, according to the latest research report into these country's real estate markets...

Analysts at global real estate consultants Jones Lang LaSalle expect prices in Sofia to fall by up to 12 per cent and an even bigger decline of up to 20 per cent in Bucharest in 2009.

While sales trends and home price movements will be downward in both capital cities, Sofia will slide slower than Bucharest and see smaller declines.

The downward trend is expected to persist throughout the year and analysts do not expect to see signs of a turnaround before 2010. They believe that entrepreneurs and property investors will adopt a wait and see attitude.

The main factor that is driving down the property markets in Bulgaria and Romania is the withdrawal of foreign investors, but they are also suffering from tight credit conditions that cut into funding options for local investors.

In a separate report Jones Lang LaSalle analysts say that the property markets in the UK, Ireland and Spain have already hit rock bottom and are headed for a gradual recovery.

These real estate markets are seeing signs of increased activity as investors show interest in finding opportunities even before confirmation of the market reaching a turning point. In London and Spain, where confidence is improving, bid prices for properties have been surprisingly strong, the report says.

The signs that the crisis has started to subside are expected to start unfreezing the markets in other leading world economies in the coming months. But a complete recovery will only be possible two years after the economy itself has shaken off the crisis, the consultancy firm forecast.

This is based on its historical research into the behavior of the property markets which shows that recovery in the property market lags improvements in the economy by as much as two years.

Source: www.propertywire.com

Forced makeover for Bulgaria

Catherine Deshayes — Mon, 11 May 2009 12:43:00 GMT

If you are a property owner in the Bulgarian Black Sea resort of Bourgas, you will soon be forced to restore and redecorate the exterior of your home - as part of a bid by the Government to improve the city centre - and if you fail to so, legal action will be taken...

The Mayor of Bourgas, Dimitar Nikolov, has said that the new rules are an essential part of the area's restoration and rejuvenation programme and will apply to properties in the central pedestrian streets particularly along Alexandrovska and Bogoridi. Some of the first phases of the work will begin in Troikata Square.

Owners will be given a ‘decent time frame' in which to conduct the necessary work. In case they fail to do so, the municipality will renovate the buildings with its own resources, after which it will collect the funds through legal action, if necessary.

The completion time for the refurbishment of Tsar Simeon Street and the area between Bulair and Cyril and Methodii has been brought forward and new pavements, tarmac, green belts, alleys and parking spaces are to be completed by the end of the month.

If you own a property that has a cultural monument status, you will also be required to renovate the home's exterior. Before doing so, special documents must be obtained from the National Institute of Cultural Monuments.

Bourgas is more of an industrial and business centre than a ‘proper' resort, although there are a few beaches, but this work is hoped to change that and attract more tourists.

The international airport is a starting point for tourists visiting the Black Sea and also a popular focus for British property investors.

Surrounded by the coastal Bourgas Lakes and located at the westernmost point of the Black Sea, Bourgas can also lay claim to the largest and most important Bulgarian port.

Picture by everystock

Bulgaria price falls

Catherine Deshayes — Thu, 07 May 2009 09:40:00 GMT

The average price of a home in Bulgaria's regional cities depreciated by 12.4 per cent in Q1 2009 from the previous quarter, according to National Statistical Institute (NSI) figures...

The annual Bulgaria property price fall was 8.4 per cent, as values only started to officially fall last October, but market experts project that residential prices could tumble by as much as 30 per cent year-on-year by Q3 2009.

The greatest price fall was recorded in Veliko Tarnovo, (-25.1 per cent), followed by Kyustendil (-21.5 per cent), Blagoevgrad (-20.5 per cent), Rousse (-18.8 per cent) and Vidin (-17.8 per cent).

Less drastic price falls of under five per cent were recorded in Montana, Dobrich, Shoumen, Razgrad, and Gabrovo.

Elsewhere, annual property prices appreciated in Plovdiv, Vratsa, Montana, Razgrad, Sliven, Bourgas, and Smolyan, although pace of growth has slowed since the market peaked last summer.

Source: www.homesoverseas.co.uk/news

Back to Black

Catherine Deshayes — Thu, 30 Apr 2009 09:33:00 GMT

An Irish investment fund is buying up properties on the Black Sea Coast in Bulgaria where property investors who are feeling the effects of the credit crunch are selling up...

Dublin based Appreciating Assets Ltd said that interest from sellers, mainly British and Irish, has been high.

'There are people who agreed to buy property off-plan and now they can't come up with the remaining balance of funding,' said Dylan Cullen, Director of the firm.

He explained that there is a good market for funds around the world for bargain priced properties in the depressed second home market which they see as a relatively safe haven with long term prospects.

Appreciating Assets has raised £6.2 million for its Bulgaria-focused fund and so far there has been no shortage of interested sellers. Since the middle of December the group has completed on 22 purchases and another 15 are pending, Cullen confirmed.

Typically they are paying in the region of £53,800 to £62,700 for good size apartments in a good development with close proximity to the beach. Cullen said their offers are not speculative and the figures are not aspirational, just a decent offer in the present climate.

Not everyone is thrilled when the company announces a price, he said but real buyers willing and able to close a deal are a rare commodity in Bulgaria these days.

The fund's strategy is to collect rental revenue on the properties for five to seven years, banking on the continued growth of the Black Sea's tourism business. Many cash strapped owners are not able to do this.

'We believe that anybody selling to us is happy with the price they're getting. People are often more realistic than they're given credit for,' Cullen added.

Source: www.propertywire.com

‘Property free' zone for Black Sea Coast

Catherine Deshayes — Thu, 16 Apr 2009 12:19:00 GMT

Bulgaria's 398-kilometre Black Sea Coast is the most popular tourist area in the country and land there has been hugely sought after by developers and investors looking to cash in on the locale - but now, industry experts are calling for a property free zone to be brought in to prevent the coastline from becoming one huge development...

In ancient times, Greek colonizers established settlements along the entire coast of the Black Sea including Bulgaria, which lies along the western shore.

Prior to 1989 the Bulgarian Black Sea coast was internationally known as the Red Riviera. Since the fall of the Iron Curtain, however, its nickname has been changed to the Bulgarian Riviera.

The coastline has remained the most popular area in Bulgaria with tourists and holiday home buyers alike, as they flock to the sandy beaches and stunning rocky coastline.

But, now the coastline has become a victim of its own success and there are concerns that the area could be ruined with a rash of developments.

Locals have also been denied free access to the beaches in some parts due to the mix of hotels and developments springing up.

Architects and MPs in Bulgaria are now calling for a one hundred metre construction free band to help protect the local environment and stop the development.

Growing public discontent has led to the MPs insisting for the application of article 16 of the Spatial Planning Act which guarantees free access to the sea for everyone.

"The Black Sea coast needs a zone absolutely forbidden for construction," said Borislav Vladimirov, who wrote the spatial planning bill.

"Such laws already exist in Croatia which have ultimately led to the demolition of buildings situated within the forbidden 70-metre zone.

"Furthermore, municipalities should become owners of the beaches - not only the small but the main beaches too," he added.

Georgi Nedelchev, Deputy Mayor of Bourgas, on Bulgaria's Southern Coast, added, "Beaches are supposed to service the tourism industry, and while the state wants to make a profit from them, construction there has resulted in negative trends in tourism."

Picture by Evgeni Dinev

Euro won't help, says Bulgaria

Catherine Deshayes — Thu, 16 Apr 2009 09:28:00 GMT

Bulgaria's Finance Minister has taken a stance against the immediate introduction of the euro, saying this would have no significant economic impact...

Plamen Oresharski's statement came in reply to International Monetary Fund calls on central and eastern European countries to consider scrapping their currencies in favour of the euro even without formally joining the eurozone.

In a confidential IMF report, which leaked earlier in the week, the fund said the eurozone could relax its entry rules so countries could join as quasi-members, without European Central Bank board seats.

"Give me just one reason for concluding a new agreement with the IMF at this stage," Minister Oresharski said, adding that Bulgaria has been considering the adoption of the euro and its impact on the economy for more than ten years.

"We will do that if we have to, I can see no drama here," he added.

"Bulgaria's entry into the eurozone will have no dramatic consequences," the minister said, as cited by 24 Hours daily.

He pointed out that Bulgaria's economy has been adjusted to a fixed currency rate in 1997-2000 at times of cataclysms, fluctuations and problems.

Bulgaria's entry in the eurozone, initially scheduled for 2010, has been set back for some time around 2012. Experts say it is conditional on continued fiscal prudence and lower inflation.

In fact, Bulgaria has yet to join the Exchange Rate Mechanism, the "waiting room" for euro membership, amid concerns about its inflation rates and external trade imbalances. Stricter application of membership criteria has also been a factor in the delay.

Source: www.novinite.com

Forecast for Bulgaria

Catherine Deshayes — Thu, 09 Apr 2009 09:13:00 GMT

After impressive growth between 2005 and 2007, in H2 2008 the construction market in Bulgaria started to level off, and in 2009 it is expected to shrink - this is one of the conclusions in the latest report from PMR, a market research company, entitled "The construction market in Bulgaria 2009 Development forecasts for 2009-2011"...

GDP growth in Bulgaria is expected to slow visibly in the next few years, with a slight reduction very likely in 2009.

At the same time the economic climate in construction declined significantly in Q4 2008 and Q1 2009 and returned to the level seen in the years 2002-2004, a period of minor growth in construction. The liquidity of construction companies is very low, and barter payments are becoming common.

The construction industry will suffer from the withdrawal of many external investors from the property market. At present many projects at the point of negotiation with contractors have been brought to a halt. In addition, investors in apartments and residential areas have been delaying their payments to contractors.

On the Bulgarian residential market the slowdown became apparent in the final months of 2008. New buildings and sales of flats were strongly affected by the financial limitations imposed by the banks.

At the moment the number of mortgages approved by the banks in Bulgaria is falling by 80 per cent on an annual basis, and the banks are now offering mortgages of only up to 70 per cent of the value of the property.

Holiday homes are a prominent factor with regard to the anticipated decline in the residential arena, as most of the clients came from the countries hardest hit by the crisis, such as the UK and Ireland.

The non-residential arena will also suffer from the financial crisis, as the largest projects which were supposed to have started this year have been postponed until an improvement has been seen.

Of 20 malls and shopping centres announced for Sofia, fewer than half have a realistic chance of being built, and even these are not very likely to begin in 2009. The two largest projects in the non-residential arena, worth £628 million, have been cancelled, and this will definitely have an adverse effect on the market.

The situation is similar with regard to office building. There are very few projects being built at the moment, and the total area does not exceed 230,000 m², despite the fact that at the beginning of 2008 it was expected that more than 800,000 m² would be opened by the end of 2010. Another interesting trend is that of re-renting offices with the sole purpose of cutting costs.

On the other hand, the logistics and industrial areas have been much less severely affected by the crisis. With regard to logistics, there is still a deficit in the supply of modern warehouses in Bulgaria. One of the reasons for this is that some of the new premises were built by companies which need them for their own purposes, and these premises do not go to the open market.

Civil engineering construction in Bulgaria is expected to continue to grow slightly in the coming years, but only single figure growth rates are possible. The development of civil engineering construction will be aimed mainly at two areas: transport infrastructure and environmental development and protection, financed mostly from EU funds.

According to Bartlomiej Sosna, a Senior Construction Analyst at PMR, "The very limited experience of the Bulgarian Government with regard to the prompt spending of EU funds will mean that civil engineering will not fully redress the decline in residential and non-residential construction.

It is probable that 2010 will be worse than 2009, because in 2009 the construction companies will be completing many projects started in 2007 and 2008".

Source: PMR Publications