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Top of the Props: Bulgaria breaks back into top ten

admin — 11/08/2011 09:38:00

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

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 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Bulgarian agent sees sales soaring

Sarah Kendell — 21/06/2011 09:55:00

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/

Deadline looms for Bulgaria buyers

Catherine Deshayes — 22/12/2010 19:13:00

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

Sell your Bulgarian property to Russian investors

Catherine Deshayes — 12/03/2010 11:58:00

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.

Bansko brits on the warpath

Catherine Deshayes — 02/03/2010 02:21:00

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

Foreign Office reveals strangest requests

admin — 11/11/2011 09:58:00

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 — 04/11/2011 07:59:00

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 — 28/10/2011 07:52:00

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 — 26/10/2011 07:30:00

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 — 25/10/2011 09:50:00

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 — 11/10/2011 07:07:00

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 — 06/10/2011 08:21:00

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 — 28/09/2011 09:17:00

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 — 26/09/2011 08:34:00

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 — 21/09/2011 06:58:00

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 — 15/09/2011 07:50:00

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 — 15/08/2011 11:59:00

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 — 12/08/2011 07:33:00

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

Bulgaria's property market gained momentum in H1 2011

admin — 18/07/2011 11:03:00

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 — 14/07/2011 12:05:00

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 — 13/07/2011 06:51:00

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

Bulgaria still top with Russian investors

admin — 07/06/2011 07:00:00

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 — 24/05/2011 03:09:00

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 — 18/05/2011 07:09:00

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 — 16/05/2011 11:40:00

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 — 11/05/2011 06:04:00

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 — 10/05/2011 08:05:00

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 — 21/04/2011 09:43:00

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 — 30/03/2011 10:53:00

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 — 17/03/2011 12:54:00

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 — 09/03/2011 12:41:00

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 — 25/02/2011 11:29:00

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 — 10/02/2011 10:48:00

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 — 26/01/2011 12:02:00

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.

Bulgarian economy posts annual growth

Catherine Deshayes — 17/11/2010 20:33:00

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 — 08/10/2010 14:42:00

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 — 07/10/2010 13:08:00

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 — 05/10/2010 12:17:00

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 — 04/10/2010 12:21:00

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 — 30/09/2010 12:57:00

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 — 30/09/2010 12:47:00

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 — 28/09/2010 15:11:00

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 — 27/09/2010 14:34:00

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 — 15/09/2010 07:34:00

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 — 05/08/2010 07:31:00

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 — 11/06/2010 11:14:00

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 — 21/05/2010 10:01:00

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 — 30/04/2010 09:46:00

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 — 19/03/2010 10:52:00

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 — 16/03/2010 09:14:00

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 — 15/03/2010 13:53:00

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

Hotel boost for Sofia

Catherine Deshayes — 12/03/2010 11:22:00

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 — 11/03/2010 09:27:00

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 — 10/03/2010 09:21:00

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 — 08/03/2010 11:31:00

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 — 04/03/2010 13:16:00

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

All roads lead to Bulgaria

Catherine Deshayes — 01/03/2010 11:05:00

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 — 08/02/2010 11:17:00

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

Bulgaria: price drop

Catherine Deshayes — 04/11/2009 12:05:00

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

Bulgaria marches on

Catherine Deshayes — 04/09/2009 10:09:00

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 — 02/09/2009 10:16:00

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 — 17/08/2009 11:24:00

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 — 28/07/2009 11:49:00

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 — 13/07/2009 11:10:00

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 — 02/06/2009 09:54:00

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 — 27/05/2009 08:53:00

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

Bulgaria price falls

Catherine Deshayes — 07/05/2009 09:40:00

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 — 30/04/2009 09:33:00

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

Euro won't help, says Bulgaria

Catherine Deshayes — 16/04/2009 09:28:00

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 — 09/04/2009 09:13:00

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

Room for expansion?

Catherine Deshayes — 20/03/2009 09:30:00

Bulgaria's economy will expand by just one per cent this year and there was a serious risk for an even slower growth, the International Monetary Fund (IMF) said in a report...

In the worst-case scenario, the economy will be in a recession by the end of 2010, with real gross domestic product (GDP) falling by three per cent this year and one per cent in 2010.

Bulgaria's economy grew by a real six per cent in 2008 and most analysts have so far predicted a modest growth in 2009. The IMF's previous forecast was for two per cent growth.

Reining in the rise in wage is just one of the measures Bulgaria should take to shelter from the crisis, according to the report. Government should curb public spending if it is to meet its Budget surplus target of two per cent of GDP. At any rate, it would miss its goal and have a surplus of no more than 1.4 per cent of GDP or even a deficit, the IMF forecast.

Another buffer against the crisis would be restricting the rise in wages or increasing labour productivity because the growing gap made Bulgaria less competitive.

Bulgarian banks' foreign owners have restricted capital flows to their local branches, although the latter had enough capital at the moment and the banking system was well equipped to deal with the downturn. Banks have booked handsome profits so far, but ebbing financial resources were likely to erode their profits, the IMF said.

The institution welcomed the Bulgarian National Bank (BNB) moves to make more liquidity available for local lenders. One of the main tasks for the country was protecting confidence in the currency board, which pegs the lev to the euro.

The mechanism bars the central bank from acting like a lender of last resort but the Government can assume that role through the fiscal reserve, which now stands at 18 per cent of the country's GDP, the report said.

In the pessimistic scenario, Bulgaria's GDP would shrink by three per cent if net capital inflows fell to zero. As the Cabinet's optimism cooled off in the final months of 2008, fiscal policy was adjusted to bleaker economic forecasts.

The Government officially targets 4.7 per cent economic growth, a figure both Finance Minister Plamen Oresharski and BNB Governor Ivan Iskrov have dismissed in recent months as overly optimistic, saying instead that growth of about two per cent was achievable.

The IMF advised the central bank to apply stress tests to check banks' credit and liquidity risks. The Financial Regulation Commission (FSC) should implement effective oversight on stock market trade and the settlement system as well as revise pension insurance regulations, the report said.

Source: www.sofiaecho.com

RAF officers enter Bulgaria

Catherine Deshayes — 13/03/2009 09:30:00

A group of former RAF officers, with years of skiing and snowboarding experience behind them have formed a property company called Zelnik Properties, which specialises in purpose-built ski property in Bulgaria...

Lead by former RAF Officer Neil Todd, the property firm is set to break ground on a luxury development, Chalet Rila, which will feature 36 apartments, and Chalet Iskar, a 12 apartment complex.

Both schemes are located in the village of Beli Iskar in the foothills of Bulgaria's Rila Mountains, close to the town of Samokov, within close proximity of the ski resort of Borovets.

Earmarked for completion in the summer of next year, off-plan apartments in the developments are available for purchase from around £40,000.

Mr Todd comments, "Borovets reminds me of Andorra in the 1980's - very affordable skiing and a charm that's different from any other ski resort in Europe. It also has a massive potential for year round holidays."

Source: www.homesoverseas.co.uk/news

Emerging markets hardest hit by crunch

Catherine Deshayes — 11/03/2009 10:24:00

Emerging markets - not long ago the darling of investors - are likely to be hardest hit by the global slowdown. These economies are fragile, and not well equipped to deal with these circumstances. A catastrophe could be brewing for emerging markets, but the World Bank hopes to garner support - and hopefully help these markets avoid the worst of it...

The World Bank estimates that the global economy will likely shrink for the first time since World War II - at least five percentage points below potential - and emerging markets will suffer the hardest hits with severe long-term implications.

In its latest report, ‘Swimming Against the Tide: How Developing Countries are Coping with the Global Crisis,' the World Bank says that 94 out of 116 developing countries have experienced a slowdown in economic growth. Of those, 43 have high levels of poverty.

And the most affected sectors are those that were the most dynamic not too long ago: Urban-based exporters, construction, mining and manufacturing - the result of shrinking global trade that's on track to record its largest annual decline in 80 years.

Developing countries are facing a £197 billion to £510 billion financial shortfall. But the biggest private sector creditors are seeing the biggest loan demand for high-income countries, choking their ability to loan to emerging markets.

And the emerging economies that can secure loans will face higher borrowing costs and lower capital flows, leading to weaker investment and slower growth in the future, the World Bank said.

"When this crisis began, people in developing countries, especially those in Africa, were the innocent bystanders in this crisis, yet they have no choice but to bear its harsh consequences," World Bank Managing Director Ngozi Okonjo-Iweala said in the report.

"We must look at poor people as assets and not liabilities. The new globalization should mean we adopt new ways of caring for our infants, educating our youth, empowering our women and protecting the vulnerable," he added.

All totaled, only one quarter of the most vulnerable countries have the ability to finance measures to economic downturn - such as job creation and safety programs. The rest will likely see already drastic poverty worsen, the bank said.

"We need to react in real time to a growing crisis that is hurting people in developing countries," said World Bank Group President Robert B. Zoellick.

"This global crisis needs a global solution and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis.

"We need investments in safety nets, infrastructure, and small and medium size companies to create jobs and to avoid social and political unrest," he added.

The best way to ease the damage, World Bank Chief Economist and Senior Vice President Justin Yifu Lin says, would be for developed countries to spend a portion of their stimulus plans on developing countries.

"Clearly, fiscal resources do have to be injected in rich countries that are at the epicenter of the crisis, but channeling infrastructure investment to the developing world where it can release bottlenecks to growth and quickly restore demand can have an even bigger bang for the buck and should be a key element to recovery," added Mr Lin.

The World Bank's report will be presented at this Saturday's meeting of the G-20 finance ministers and central bank governors.

Written by Mike Caggeso for Money Morning.

Picture by monique72

Bulgaria in eurozone waiting room

Catherine Deshayes — 10/03/2009 09:20:00

Bulgaria is about to fulfil the Maastricht criteria to enter the euro zone, as the country's inflation rate will fall to 2.5 per cent at the end of 2009 from 7.8 per cent in 2008, the Governor of its central bank, Ivan Iskrov, is quoted as saying...

Speaking at the Bulgarian Investment and Business Summit, explained that the lower inflation rate will enable Bulgaria to enter the Exchange Rate Mechanism - the antechamber to the euro zone.

Bulgarian Prime Minister Sergei Stanishev recently said his country had fulfilled four out of five criteria for eurozone entry, inflation being the only outstanding criterion.

"The adoption of the euro is not a privilege but an obligation the country has taken," Iskrov recalled.

Bulgaria's currency board mechanism, which pegs the lev to the euro, provides a cushion against trouble and risk of speculations, Iskrov explained.

Although the central bank has revised its growth forecast for the Bulgarian economy to two per cent, unlike Romania, the country does not need financial aid at the moment.

The Government has maintained a steady budget surplus and will target at least a balanced budget this year. Bulgaria has had budget surpluses for the past seven or eight years.

In line with many East European leaders, who strongly criticised Western media for depicting their countries as "black holes" and major threats to economic stability, Iskrov expressed dismay at what he called the "aggression" of Western analysts and media towards the region.

Central and Eastern Europe has nothing to fear from the crisis and none of its banks have toxic assets, according to Iskrov.

The only problems are in fact imported from the rest of Europe, because the main commercial partners of the region are in the grip of recession, he added.

Source: www.euractiv.com

February Top of the Props - Italy nabs the top spot

Catherine Deshayes — 05/03/2009 09:27:00

Old favourites made an appearance on TheMoveChannel.com's February Top of the Props chart after several months out of the limelight, suggesting that the current economic climate may have caused investors to lose confidence in less traditional markets and return to more established markets once more...

Our Top of the Props chart provides a monthly pop chart snapshot of the most popular countries on the site and last month, Italy reigned supreme, attracting the most interest from visitors to the site.

Italy

Visitors to the site in February found a new love for Italy as it climbed three places to nab the top spot in last month's chart.

As well as boasting a well established and highly active tourist market and easy accessibility from many European cities, Italy has long been an attractive proposition for investors.

Properties in the well known spots, such as Tuscany and the Lakes, can command sky high prices, but there are areas of the country that remain relatively undiscovered and have prices to match. Areas such as Le Marche, near Ancona and Puglia are just some of these up and coming areas that are ripe for investment.

Italy will never lose its appeal as a holiday destination and thus rental potential on any property you do buy should be fairly strong. As many low cost airlines now fly to many regional parts of Italy, this will encourage swarms of tourists to these previously untapped areas.

Beautiful Bulgaria

Bulgaria, which underwent one of the largest property booms in recent years, climbed six places to take third place on February's Top of the Props chart.

The Black Sea Coast is hugely popular with overseas buyers and Bulgaria's Roman, Greek and Thracian historical attractions - which include nine UNESCO world heritage sites - also draw hoards of tourists each year.

Bulgaria's wealth of ski resorts are a haven for winter sports enthusiasts and a ski holiday here remains cheaper than in many other European ski destinations. For those who enjoy sun rather than snow, the Black Sea Coast boasts a reliable, warm climate throughout the summer months, with the average temperature sitting at 27 degrees centigrade.

Easy accessibility from many European cities and cheap, short flights add to Bulgaria's appeal.

Compared to other European capitals, Bulgaria's capital city Sofia is still an extremely affordable place to buy.

Dan Johnson, Director of TheMoveChannel.com, said, "In terms of average prices, Sofia still has some way to go to catch up with Western European cities.

"But as the general level of wages continues to rise, expect the price growth to continue," he added.

Vive la France!

France climbed six places to nab sixth place in February's chart. Buying an investment property in a market as established and popular as France offers investors a safe option with plenty of opportunity to make money.

Those hunting for a solid property investment should look to France as investors have enjoyed a history of strong rental and sale returns over the years and the country looks set to remain a holiday hotspot.

France has long been topping the list of one of the best loved tourist destinations and, with such easy accessibility from many European cities, including a fast Eurostar service from London; it looks set to retain that title.

The buzz and culture in Paris, Nice and Cannes also continues to attract holidaymakers back year after year.

Other movers and shakers

January's winner USA had to make do with second place on February's Top of the Props chart. Whether or not the USA's ailing housing market can make a real come back remains to be seen, but, as I wrote in February's Investment Property Watch feature (posted on TheMoveChannel.com yesterday, Wednesday March 4^th), sales are on the rise as international cash buyers look to snap up foreclosed properties at a bargain.

Old classic Spain made a comeback after months out of the limelight, and nabbed fourth place, swiftly followed by the United Arab Emirates in fifth place and Egypt, which fell four spots, in seventh place.

Turkey grabbed eighth place, whilst Brazil - which fell by a whopping seven places - and Portugal brought up the rear, taking ninth and tenth places respectively in February's chart.

February Top of the Props chart

Overall Enquiry Volume for February 2009

Rank	Country	Share	Change	Comment
1	Italy	9.5	Up 3	New to top 10!
2	USA	9.23	Down 1
3	Bulgaria	4.69	Up 6
4	Spain	4.6	Up 10	New to top 10!
5	UAE	4.54	Up 2
6	France	3.79	Up 6	New to top 10!
7	Egypt	3.79	Down 4
8	Turkey	3.73	Down 3
9	Brazil	3.38	Down 7
10	Portugal	3.11	Up 1	New to top 10!
11	Germany	2.81	Up 2
12	Cyprus	2.6	Up 8
13	Dominican Republic	2.21	Down 3
14	Thailand	2.06	Down 6
15	Greece	1.49	Non-mover
16	Croatia	1.34		Highest New Entry
17	Bahamas	1.05	Up 6
18	Barbados	0.84		New Entry
19	Macedonia	0.84		New Entry
20	Sweden	0.84	Down 2
21	Costa Rica	0.81	Down 5
22	Morocco	0.81	Down 3
23	Panama	0.78	Up 2
24	India	0.72	Down 3
25	Canada	0.63	Down 19	Biggest faller
26	Romania	0.63	Up 1
27	Montenegro	0.54	Up 15
28	Malaysia	0.45	Up 5
29	Hungary	0.45		New Entry
30	Cape Verde	0.39	Up 16	Highest climber
31	Tunisia	0.36	Up 16	Highest climber
32	Poland	0.33	Down 2
33	Argentina	0.3	Down 5
34	Philippines	0.3	Down 10
35	Slovakia	0.3	Down 6
36	Sri Lanka	0.3	Down 19	Biggest faller
37	New Zealand	0.27	Up 6
38	Mexico	0.27	Down 3
39	Albania	0.27	Down 2
40	Australia	0.21	Down 18

Picture by imageafter

Balkan property rights ‘still a challenge'

Jaimie Kanwar — 27/02/2009 12:26:00

The 2009 International Property Rights Index shows that the protection of property rights still remains a challenge for most of the Balkans...

The Index incorporates 10 variables, divided into three main components: legal and political environment, physical property rights and intellectual property rights.

Greece at 39th place out of 115 countries is ranked highest among all the Balkan countries, with Slovenia the runner-up at 48th place.

Then follow Bulgaria and Croatia, on the 59th and 60th spot respectively, Romania at 64 and Montenegro at 95. Macedonia is ranked 97th ahead of Serbia at 100, Albania at 104 and Bosnia & Herzegovina at 108th place

Same as in the last three years, Finland tops the Index followed by Denmark and the Netherlands, Australia, Switzerland, Austria, Iceland and Singapore.

Source: www.balkaninsight.com

Bulgaria in new flights boost

Jaimie Kanwar — 27/02/2009 12:16:00

The low-cost carrier Wizz Air has announced plans to continue extending its operations in Eastern Europe...

Wizz Air plans to open new bases and more routes from its existing ones in Romania and Bulgaria.

The company will now be able to operate flights between Sofia and Basel (Switzerland), Kiev (the Ukraine) and Tunis (Tunisia), after the Bulgarian government declared it as a recognized company to carry out regular international routes between more countries.

Currently, Wizz Air connects Sofia to Barcelona, Brussels, Dortmund, London, Milan, Rome, Valencia, Varna and Venice; Varna to Budapest and Sofia; and Burgas to Budapest, Katowice/Cracow, London, Poznan and Warsaw.

The low-budget airline also announced recent developments and expansion plans for Romania. The Bulgarian government concluded that these extra routes will increase the number of foreign visitors to Bulgaria in 2009.

Source: www.novinite.com

10 tips for investing in emerging property markets

Jaimie Kanwar — 27/02/2009 10:00:00

Overseas property can bring high capital returns, but the key is being able to identify the next property hotspot and ensure that returns are maximised.

To that end, here are 10 tips on how to successfully identify an emerging market

1. Research, research, research

Do not judge a place on face value. It is essential that buyers conduct full and thorough research into the markets they are planning on buying; how far it is from the airport? How close are the local shops, restaurants, the beach and hospitals?

2. Consult the experts

Purchasing in an emerging market can mean that there is a lack of information available regarding investing in the country. As such, it is essential that buyers consult those who specialise in investing in the region.

3. Planned EU membership

EU membership brings inward investment and the easing of restrictions on the movement of capital and trade. Many new EU states, such as Poland, have seen property prices soar following their joining.

4. Leisure facilities

Large scale facilities such as ski runs, golf courses, hotels, spas and diving centres, increase the demand for holiday homes and boosts property values. These facilities will also attract tourism, and as such rental yields will increase.

5. Government and private investment

Investment encourages improvements in the local infrastructure and amenities, bringing money into the area, strengthening the economy and pushing house prices upwards.

6. Up and coming events

Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

7. The law

Keep abreast of legal issues surrounding foreigners' access to the housing market, as well as any changes to purchasing restrictions for foreign investors, this is particularly important in emerging markets, as the situation can change quickly.

8. Tax

Check the inheritance and capital gains taxes in the country you are purchasing in. It is extremely unlikely that taxation laws will be the same as in the UK. In some areas, such as North Cyprus, you may be exempt from inheritance tax, however, in others, buyers may have to pay tax on pensions, or even tax in both the UK and the country of purchase.

9. Arranging finance

In some emerging markets you may not be able to get a mortgage in the country of purchase and will have to get one in the UK. However, if your mortgage is in the local currency then you must consider the impact of fluctuations in exchange rates.

10. Read the contract

If you are given a contract in a foreign language then ask for a copy in English. Ensure that you read it carefully and are clear on everything, especially the deposit, completion date, what's included in the property price and whether there are any additional charges.

Dermot O'Kane, Director of Property International, offered the following guidance for emerging market hunters: "Identifying and investing in emerging markets requires a lot of market knowledge, particularly as in these ‘hotspots' property prices are governed more by the local buyer than by the overseas one.

"Never assume anything. The key to success in an emerging market is research; look into everything, from finance and taxation to local restaurants and flights.

"When armed with a full knowledge of the area, and you have established what type of property you are after, it is essential to act fast to keep ahead of the game and really capitalise on the country's status as an emerging hotspot."

To find exciting properties in emerging markets, visit our investment property portal: http://investment-property.themovechannel.com/

Picture: Greenwichmeantime.co.uk

Bulgaria price boom?

Jaimie Kanwar — 20/02/2009 11:59:00

Newly released figures have shown that house prices in Bulgaria's regional cities jumped almost 25% in 2008 compared to 2007...

This represents an increase of BGN 1,363 per square metre, according to the data compiled by data of the National Statistical Institute.

The uptrend held through October, but prices dropped 4.1% in the third quarter from the previous three months. The data excludes new build houses and luxury apartments, and are based on the prices of sold properties.

Unrealistic figures?

However, according to Strahil Ivanov, owner of real estate agency Yavlena, the statistics are ‘unrealistic', noting that that prices rose in the first quarter and have since then slumped by 10 to 20%.

A survey of Bulgarian properties revealed that last year property transactions were struck at 26% higher prices on average than in the previous year.

The company's operating manager, Polina Stoikova, explained prices were rising by October and the slid 15-20% from the early months of the year as buyers opted for higher-class properties.

Biggest rise in Sofia

According to the NSI, flat prices in Sofia jumped the highest, gaining almost 47.8% last year. In Lovech, Pleven, Plovdiv, Rousse and Yambol prices rose around 30%.

In the third quarter prices dropped in 28 out of the 23 regional cities, most notably in Veliko Tarnovo, Pleven and Targovishte, which saw falls of more than 11%.

Source: http://propertywisebulgaria.com

Lifestylers flock to Bulgaria

Jaimie Kanwar — 18/02/2009 10:35:00

In the current climate, where is the most secure Bulgaria property market for buyers? Quest Bulgaria reveals all...

The days of small investors arriving with their calculators at the ready to work out how much quick money they could make are gone. However, according to Quest Bulgaria, the current financial crisis has had little effect in one particular segment of the property market in Bulgaria: small town and village homes.

A spokesperson for Quest commented: "The rural and village property market has become the most secure in Bulgaria. Lifestyle buyers tend to be those who really want the property and see it as a family home or retirement opportunity. They just want to relax and are looking for a better quality of life combined with a significantly lower cost of living.

"They are not driven by investment and ‘kerching!' factor - they are usually on a sounder financial footing and take a long term view on their property".

The spokesperson continued: "Lifestyle buyers know that there is likely to be no mortgage required (or if so, it will be very small), as many are often high net worth individuals or have good equity in their current home.

"They are not aiming to rent their property to generate income unlike the buy-to-let brigade. Whilst they may be looking to resell at some time in the future, they are realistic that this will be long term and certainly not at triple or quadruple the price of today".

Source: www.Questbg.com

New price drops for Bulgaria

Jaimie Kanwar — 17/02/2009 10:48:00

The prices of new buildings in Bulgaria have dropped down by 15% since the beginning of the year...

According to Teodora Dimitrova, manager of ERA real estate, the drop of 15% is a huge improvement over 2008 prices.

The biggest reduction is on the market of unfinished residence buildings, panel residence buildings, and agricultural lands - between 30% and 40%. The market of luxury realties is still stable, Dimitrova informs.

Compared to twenty other European countries, Bulgarian population's financial debt is one of the smallest amounting to only 12% of the GDP. In some European countries it reaches 50% of the GDP, and in some it even goes beyond 100% of GDP, ERA Europe reported.

Currently Bulgarian banks have granted loans of no more than 60% of the value of the realty, Dimitrova reported. According to her, the present moment is the best time for buying real estate properties because there are a lot of valuable offers.

Source: www.novinite.com

Irish investors hit hard

Jaimie Kanwar — 13/02/2009 12:09:00

Scores of Irish investors have been hit by the collapse of a UK-based agent specialising in Bulgarian properties...

Bulgarian Dreams, which once claimed nearly 30 per cent of its customers came from Ireland, has ceased trading, shortly after it featured in a critical BBC documentary. The company has blamed "extraordinarily difficult economic conditions" for its demise.

In January 2008, the Association of International Property Professionals said it expelled the company for breaching the association's code of conduct. At the time, Bulgarian Dreams claimed it had not been expelled but had resigned some time earlier.

Exactly how many Irish customers of Bulgarian Dreams are affected is not clear, but Sofia-based lawyer Milen Hristov, who is filing claims on behalf of aggrieved customers, said he had received inquiries from a number of Irish purchasers.

Ghost towns

Overseas property consultant Diarmuid Condon likened the collapse of the Bulgarian property market to events nearer home: "Bulgarian cities are doing okay, but the resorts where Irish investors have bought are like ghost towns.

"Building has stopped, apartments aren't selling and developers can't raise finance. There's an awful lot of people sitting on properties that were supposed to have been completed but aren't."

Earlier this week, the company featured on BBC's Watchdog programme, which said it was aware of 80 customers whose apartments remained uncompleted.

Source: www.irishtimes.com

US boost for Bulgaria

Jaimie Kanwar — 12/02/2009 11:45:00

Despite the ongoing global downturn, US Investment in Bulgaria is set to soar over the next year...

Bulgaria's Economy Minister Petar Dimitrov announced this week that the country expected $1bn worth of investments from two American companies in 2009.

Mr Dimitrov commented: "Bulgaria expects investments of US 1 B in two projects of US companies this year. This is quite important in times of a world financial crisis".

Minister Dimitrov will have a meeting with a team of General Electric that are ready to invest EUR 800 M in a wind farm in Bulgaria. Energy company AES is also willing to invest EUR 240 M.

Mr Dimitrov added: "The Bulgarian media do not want to believe me, but according to a report of the United Nations Committee on Trade and Development, Bulgaria occupies second place in the world in terms of favourable investment climate after Hong Kong".

Minister Dimitrov also said he expected a deal for cigarette producer Bulgartabac by the summer.

Source: www.novinite.com

Bulgaria gets crunched?

Catherine Deshayes — 06/02/2009 10:00:00

Bulgaria's property market has finally shown signs of slowing, after official figures compiled by the country's National Institute of Statistics (NSI) showed that Bulgaria property prices began to fall in Q4 2008...

Despite the property price slowdown in the final quarter of last year, the average price of a property in Bulgaria still recorded annual appreciation of 24.9 per cent in 2008.

Sofia (excl. Sofia City), recorded the greatest levels of capital growth in 2008 (47.8 per cent), followed by Lovech (35.7 per cent), Plovdiv (33.1 per cent), Pleven (31.8 per cent), Ruse (30.9 per cent), Yambol (29per cent) and Sofia City (28.5 per cent).

However, a fall in demand for homes in Bulgaria is likely to see prices stagnate, or even fall - in some cases considerably - across some parts of the country in 2009.

Some Bulgarian agencies are reporting a fall of up to 40 per cent in sales as a consequence of greater interest rates, a lack of liquidity and more stringent lending conditions.

Source: www.homesoverseas.co.uk/news

Bulgaria mortgages ‘different'

Catherine Deshayes — 14/01/2009 10:00:00

Property investors considering making a purchase in Bulgaria have been urged to be aware of a number of differences between the country's mortgage market and that of the UK...

According to Quest Bulgaria property magazine the two are largely similar, however the publication has noted that Bulgarian lenders are more cautious than their UK counterparts, meaning those applying for a homeowner loan must have no marks on their credit history.

And banks in the country often value properties at less than the price that is being paid, meaning it is unlikely purchasers will be able to obtain a mortgage at more than 70 per cent of the lender's valuation.

Repayments also differ than from those in the UK, the publication noted, as any cuts in mortgage rates - while being passed on - mean borrowers simply repay their capital at a faster rate rather than their monthly amount being reduced.

Quest recently described Bulgaria property as being a good choice for investors in 2009, as prices in the country have remained "incredibly cheap".

Source: www.propertyshowrooms.com

Russian buyers: who, what and where

Catherine Deshayes — 07/01/2009 10:16:00

Cash clad Russians have arrived on the international property scene with a bang and they are looking to buy prized property throughout the world...

The headlines speak for themselves. "From Russia-with Cash," waxes the Wall Street Journal. "Russians snap up Australian luxury," declares the BBC. "You are not imagining that Russian buying spree," confirms The New York Observer. "Despite crisis, wealthy Russians are buying up coastal Montenegro," writes The New York Times.

The economic slowdown has only raised the Russian interest in property investment. The RTS, Russia's stock exchange, has lost 75 per cent of its value in 2008, "making Russian shares the cheapest in the developed world," according to a recent article by Overseas Property Professional.

"One can hardly trust in the Russian stock market. Low oil prices ruin all the business indexes in our country despite the formidable government aid. I believe that, in these troubled times, people think about more solid investments, such as real estate," said Alexey Konovalov, the Editor-in-Chief of Prian.ru, the leading Russian overseas property portal.

Bulgaria seems to be garnering interest from more Russian property investors

Investing in property in Russia not only costs a pretty penny, but there are fears that the markets are ready to collapse.

Analysts believe prices have risen to unsustainable levels in major cities such as Moscow and St. Petersburg and supply outstrips demand in some segments. The instability of the country's stock market coupled with fears of a real estate meltdown at home has sent well heeled Russians abroad in search of safe havens around the world. "We expect more Russian investors to go overseas," said Mr Konovalov.

Who is buying

Hardly surprising, then, that property agencies are scrambling to market to them. There is a lot of interest in just who these newly minted wealthy Russians are and what exactly they are looking for.

In reality, however, it is hard to pigeonhole the Russian market. "Wealthy Russians are mostly interested in luxury properties in London, Cote d'Azure, Paris, Tuscany or New York," according to Mr Konovalov. "Our middle-class nationals are looking for affordable apartments or houses up to 100,000 euros in Central, Eastern Europe and Middle East," he said. Even senior citizens, who don't have much in the way of spare cash, can afford a property abroad after selling "their houses or their rooms in communal flats," according to Mr Konovalov.

What they are buying

Russians owning real estate abroad have become more and more common in the past five years, according to Mr Konovalov. Their reasons for internationally purchasing property are as diverse as their real estate destinations.

According to a survey made by Prian.ru, 20 per cent of Russian buyers are purchasing property in resorts for vacation homes. Another 20 per cent are looking for a place to retire.

An even larger portion, 27.5 per cent of survey respondents, stated their desire to immigrate to the country of their purchase. A small slice, just 5.4 per cent, see owning property overseas as a status symbol.

The rest buy for investment- and business-related purposes, some planning to make money by renting their properties out and others hoping to resell.

"Russians are buying mostly homes and land. Commercial properties are not so popular," according to Mr Konovalov. "The number of requests to the Prian.ru property database increased by 15 per cent in October," he said. It went up from about 500,000 in September to about 580,000 in October.

Where they are looking?

Most Russians are searching for properties close to home, in Europe, though a small per centage look in places as far as Egypt and Thailand.

This number may increase now that several eastern European countries have recently seen a drop in their credit ratings. Prian.ru breaks down the top 10 countries visitors to the website inquired about last month as the following:

Some U.S. real estate markets have already seen an influx of foreign buyers

Bulgaria: 14.53 per cent

Germany: 8.02 per cent

Finland: 7.87 per cent

Spain: 7.85 per cent

USA: 5.19 per cent

France: 4.78 per cent

Czech Republic: 4.61 per cent

Italy: 4.33 per cent

Egypt: 3.17 per cent

Turkey: 3.00 per cent

Montenegro and Greece are in the top 15. Also, interest in Thailand has shown a strong increase while Cyprus has seen seasonal decline.

Russians are part of a relatively new and bigger trend. Increasing global wealth will continue to make new millionaires and billionaires.

Nowhere is this more true than in places such as Russia, China and India. The diversity of international property buyers is likely to continue to evolve as national borders fall to the wayside under the irresistible charm of the rich.

Written by Yemisrach Kifle for www.nuwireinvestor.com

Picture by saxon

Rising rents in Bulgaria

Catherine Deshayes — 05/12/2008 09:38:00

Falling Bulgarian property prices are being offset against rising rental demand in the country's four largest cities - Sofia, Plovdiv, Varna and Bourgas - according to data compiled by property agency Address...

The company's research shows that there has been a sharp rise in demand for rental accommodation due to the impact of the global financial turmoil and the subsequent fall in demand for property in Bulgaria to buy.

Statistics compiled by Address show that between January and October, the major trend in the property market was shifting towards rentals, culminating in growth of 12 per cent during that period, with the greatest demand being for two-bedroom apartments.

The greatest increase in demand for rental accommodation was witnessed in Varna (+13 per cent), followed by Sofia, Plovdiv and Bourgas.

Capital growth in Bulgaria' housing market has slowed sharply to just three per cent, according to the Knight Frank's latest Global House Price Index.

Source: www.homesoverseas.co.uk

Bulgaria's rents booming

Catherine Deshayes — 28/11/2008 09:45:00

As property prices fall in Bulgaria the rental sector is increasing especially for apartments in cities, the latest figures show...

Sofia, Plovdiv, Varna and Bourgas, Bulgaria's four biggest cities, have see a significant growth of 12 per cent in the rental market in the first three quarters of 2008, according to figures from Address Real Estate.

The increase is regarded as a consequence of the global financial crisis and the subsequent decline in demand from buyers of single family homes, flats and planned unit developments.

Address Real Estate's research showed that between January and October, the major trend in the real estate market was shifting towards rentals, especially two bedroom apartments which saw a 14 per cent increase in demand.

There was also a six per cent drop in demand for studio apartments mainly because rental prices were very close to those charged for two-room apartments. Demand for three-room flats also increased, recording a three per cent raise.

Nationwide, amongst the four largest cities in Bulgaria, the most demand is in the port town of Varna followed by Sofia, Plovdiv and Bourgas, the research found.

The biggest demand for rental property in the capital is in the centre of Sofia with Lozenetz, Mladost and Lulin also proving popular.

Bourgas rated last in the table with a 5.43 per cent increase, the cheapest rate of all major towns in Bulgaria.

The Research also showed that prospective tenants were generally unconcerned whether the flat was in a newly constructed building or in a relatively old one. The main factor in making their decision is whether the flat has undergone recent refurbishment and whether it has the necessary appliances.

Tenants are reluctant to be burdened with refurbishing the flat themselves, whereas prospective buyers are keen on making the choices themselves and having a new flat custom built.

Source: www.propertywire.com

No aid for Bulgaria

Catherine Deshayes — 28/11/2008 09:38:00

Bulgaria loses a total of £184 million and another £28.7 million are under question as a result of the decision of the European Commission not to unfreeze the aid for the country because of fraud and corruption...

All the funds are under PHARE programme, which is one of the three pre-accession instruments financed by the European Union to assist the applicant countries of Central and Eastern Europe in their preparations for joining the European Union.

The decision caused disappointment and confusion among Ministers and Government leaders of the country.

Source: Baltic Business News

Overseas property 'offers better value'

Catherine Deshayes — 26/11/2008 09:23:00

Overseas property may be offering improved value after Knight Frank recorded its first ever quarterly drop in world property prices...

The Knight Frank Global House Price Index indicated a 0.3 per cent fall during the quarter.

Head of International Research at the firm Nicholas Barnes observed that this showed the entire world is vulnerable to the effects of the credit crunch.

At the same time, he suggested, this could be good news for investors, stating: "It means investors who are in a position to buy are now sensing that some markets are offering relative value compared to pre-credit crunch conditions".

Further guidance on which may be the best countries to invest in could emerge today.

This is when the Organisation for Economic Co-operation and Development publishes its projections for how each major economy around the world will perform in the year ahead.

Source: Hot Property

Worldwide view

Catherine Deshayes — 25/11/2008 10:39:00

Property prices in more than half the countries included in the Knight Frank Global House Price Index fell in the previous three months...

Annual global house price growth slowed further to 3.8 per cent during July to October 2008. Dubai was the only country (Emirate) to buck the trend but figures reflect Q2 and are felt not to reflect shift in balance of supply and demand.

Strong growth in 2007 means that two thirds of the Knight Frank index is still showing an annual increase but property prices in more than half the countries fell in the third quarter of 2008. ‘We expect that trend to continue with the vast majority of locations showing zero or negative growth by the end of the year,' says Nicholas Barnes, Head of International Research.

Some eastern European countries and Russia were the only to perform reasonably well but prices in Bulgaria - a strong performer this year - grew by half the rate seen in the previous quarter.

‘Lithuania, Canada, the UK and Norway saw the biggest falls in Q3,' continues Mr Barnes, ‘The US remains at the bottom of the index and a further quarterly fall of 2.8 per cent means prices are now almost 21 per cent down from their peak.'

Top ten performers

Dubai
Slovakia
Russia
Bulgaria
Czech Republic
Ukraine
Jersey
Hong Kong
Philippines
Colombia

Worst performing countries

Latvia
USA
Estonia
UK
Denmark
Ireland
Austria
New Zealand
Portugal
Germany

Source: Country Life

Bulgaria out in the cold

Catherine Deshayes — 18/11/2008 10:21:00

Holiday resort operators in Bulgaria are admitting that they expect the 2009 summer season to be particularly bad...

It is expected to prompt even more pessimism among holiday property investors in Black Sea resorts who are already selling, even at a loss, because of plummeting prices.

Figures for the 2008 season show that the number of visitors to the Black Sea resorts were down by about four per cent.

One operator has announced it is planning to keep half its hotel rooms out of circulation next summer as it does not expect much demand.

Albena, which owns the hotels, retail outlets and infrastructure in the Black Sea resort of the same name, is taking the drastic move to avoid operating at a loss.

'When an economic crisis strikes one of the first things to go are vacations. Tourist packages are not going to get cheaper,' said Albena Executive Director Krassimir Stanev.

'Airlines are already cutting the number of flights and this will have a serious effect on the tourism industry in Bulgaria,' he added.

The only hope is that some holidaymakers might switch from more expensive destinations to budget breaks in Bulgaria. He said a final decision will be taken in April based on forward bookings but the company is not optimistic.

'It is possible that Bulgaria might end up profiting from the economic crisis as budget travellers turn to cheaper destinations,' said the company's Investor's Relations Director Yovka Strashilova.

But the company is already expecting its 2008 profits to be down by about 20 per cent and there will be no new investment in 2009 due to the global economic downturn, she added.

Source: www.propertywire.com

Look outside the box

Catherine Deshayes — 13/11/2008 11:06:00

Those considering investing in property in Bulgaria have been advised to consider locations away from the most popular areas...

According to BuyAssociation, properties in the country's skiing and city areas are ideal sites for investment, with the Super Borovets resort being singled out by the firm as one such development which could attract attention.

The site is less than 50 miles away from Sofia and features a skiing season running from December until May, while golf courses may attract holidaymakers during the summer months.

Properties at the Borovets Gardens development can be purchased on a special pre-release offer for £37,000, which could attract overseas investors looking to capitalise on the rented holiday home market.

The country was recently hailed as an exciting emerging market by British investor Greg Marshall, who said that Bulgaria has potential for growth and enables him to make a return on His apartment investment.

Source: www.propertyshowrooms.com

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

Bulgaria: solar paradise

Catherine Deshayes — 07/11/2008 09:34:00

Bulgaria will become a paradise to all who invest in solar energy, it transpired at a conference on alternative energy sources...

With the adoption of the amendments in the new Energy Act, the contracts for purchase of produced electricity will be valid for a period of 25 years. This will guarantee not only returns for the investments but fair profit as well.

"In terms of competitiveness, we could surpass even Germany, where energy contracts last 20 years. We`ve got great potential to build renewable energy power plants," Deputy Minister of Economy and Energy Valentin Ivanov said.

He added that the conditions for solar power plants in Bulgaria are great as one sq. m of sun battery produces as much as 1,450-1,600 kW/h. "The future belongs to the sun because water is growing scarce and is used mainly for drinking, and wind in our country is inconstant," Ivanov said.

Source: News Guide Bulgaria

Bulgaria's boom gone bad?

Catherine Deshayes — 27/10/2008 10:57:00

Bulgaria's property market is suffering a steep decline with desperate owners selling at huge losses and developers halting work on major projects...

Holiday properties are experiencing the worst of the decline as the market is saturated and developers struggle to find buyers for big projects, according to Dobromir Ganev, Managing Director of Foros real estate agency.

Developer Terra Trans Consult has suspended work on a £140 million holiday village project due to the severe economic conditions.

The company's Balchik Paradise complex was to deliver houses, a hotel, a spa centre, a conference hall and a cinema hall.

Four Bulgarian banks have recently raised the interest rates charged on loans and the country's leading local-currency mortgage lenders have revised their mortgage loan terms.

In Pamporovo, a once popular winter tourist resort, recently built apartments have declined sharply in value, according to Yavlena GEOS, a real estate agency based in Smolyan. They are selling at £250 for a square metre compared with £450 a year ago.

The drastic decline in prices is put down to a sharp decrease in demand from foreign property investors, a spokesman said.

Until recently the British were the main buyers in the market, followed by Irish, Russian and Spanish investors. 'There are fewer foreigners interested in buying, instead there are now cases of foreigners re-selling previously purchased property in order to reclaim as much as possible from their initial investment,' the spokesman said.

It is not expected to be a good winter season for the resort. The major British tourist operators have suspended charter flights to Plovdiv, which is where the bulk of Pamporovo holiday-makers land.

There are fears about a lack of snow as the dam that fed the resort's snow guns has been re-organised.

Other ski resorts like Bansko and Borovets are expecting lower than expected numbers of visitors this winter season and thus lower rental yields for property investors.

According to Luchezar Iskrov, Chairperson of the National Real Property Association, the Bulgarian market is still to experience the worst.

Market speculators, loan borrowers and property developers are desperate to offload properties as quick as possible and turn them into cash before any further slump in their value comes about, claimed Vladimir Lafchiev, manager of property agency Viel.

Source: www.propertywire.com

Eco energy in Bulgaria

Catherine Deshayes — 14/10/2008 09:51:00

New renewable Energy Park makes Bulgaria's Karnobat a centre of environmentally friendly energy production...

The southeast Bulgarian town of Karnobat is to become a centre of renewable energy production, as 150 Million Euros will be invested in the construction of an alternative energy park there.

Two technological parks - one with wind energy generators and another with photovoltaic generators are to be built creating 250 temporary and 60 permanent jobs for the town.

A similar smaller-scale project for a photovoltaic park is also to be realized in the village of Smolnik.

In addition foreign companies are allegedly interested in investing in renewable energy parks in three other villages in the region.

The climate in large parts of northeast and southeast Bulgaria is considered especially favourable for producing electricity from renewable energy sources.

Source: www.selectproperty.com

New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Top Ski Destinations: Bansko - Bulgaria

Jude Buttle — 07/10/2008 11:23:00

Bansko is Bulgaria's most modern ski resort and right up there with the best in Europe. But is this famous destination a little too serene for the hardcore ski aficiendos?

Fast Facts

Location: Bansko, Bulgaria

Resort Altitude: 925m

Kilometres of Piste: 70kms

Number of Lifts: 12

Lift Fees: € 15-25

Pistes Open: December to May

Après Ski: Swimming pools, Thermal springs, Taverns & Pubs.

The Skiing

Bansko is Bulgaria's most modern ski resort, having the best and most up-to-date ski centre in the country. Recently the company Yulen - which has the licence to run the skiing area of the resort - made a multi-million Euro investment to enhance the skiing facilities, including a new eight-seated Gondola.

Bansko has the best snow record and the longest ski season (15 December - 15 May) in Bulgaria and the resort is particularly well suited to beginners and intermediates. The slopes of Todorin Vruh are the best spot for novices, with gentle slopes and long runs from the chair lift. There is also a ski and snowboard school, offering good tuition for both adults and children.

The ski pistes are located in two main centres: Chalin Valog (1100-1600 metres) and Shiligarnika (1700-2500 metres). They are approximately 10 kilometres above the town on the northern slopes of Pirin and are easily accessible on the new Gondola lift. The total length of the marked pistes is 70 kilometres.

Slalom and Giant slalom runs are available and snowboard lovers will enjoy the fun park and the half pipe that will cause them an enormous adrenaline rush, whilst showing off their latest tricks in front of an enthusiastic crowd.

Huge monitors showing images from the different pistes are located at the starting station of the gondola, allowing skiers more information of the wind and temperature conditions before climbing up on the slope.

Off Piste

The town of Bansko is located at the foothills of the Pirin Mountain, positioned near the river Glazane. Only 160 kilometres away from the capital city, Sofia, Bansko's name derives from the ancient Bulgarian word "ban," which means "master."

Bansko is a charming and historic town, a unique mixture of old traditions and modern style, where new-built hotels and apartment houses are separated from more than 100 years old ethnographic houses by just a tiny, stone-paved street.

The town centre is a listed World Heritage Site and the home of the Holy Trinity Church and the Bell Tower, which has been keeping accurate time for 150 years.

Après-ski in Bansko is not as wild as Bulgaria's other popular ski resorts of Borovets and Pamporovo. The town takes its tone from the quiet locals, who prefer to unwind in the large selection of low-ceilinged taverns (called "Mehana") and pubs, listening to live folk music in front of a roaring wood fire.

There are some low-key discotheques offering dancing, also frequented by the local youth who have a rather, rowdy reputation.

South of Bansko is situated the National Park Pirin included in the UNESCO list for cultural and natural sightseeing. The park is rich with its lakes, waterfalls, caves and historical sites.

Image Gallery

Available Properties

A good sized one bedroom apartment situated on the ground floor of a lovely new building finished in 2006. The property comes fully furnished and has an additional ski room in the basement.

The location offers great rental potential as it is situated close to the Bansko ski resort, which is open all year round, with skiing in the winter and golf in the summer, making the area ideal for rentals. Purchase price £28,330.

This magnificent three bedroom house is located only five kilometres from the Bansko ski resort, the most modern ski resort in Bulgaria.

The house has recently been restored in traditional Bulgarian style and comprises a spacious living room, fitted kitchen, modern bathroom and a large balcony with stunning views of the surrounding area. Purchase price £109,630.

Find Ski Property in Bansko or property for sale in Bulgaria

Photos by NachoMC

Black Sea mega complex

Catherine Deshayes — 06/10/2008 11:17:00

As most investors are sending out negative signals about the seaside property market, a Russian company started a luxurious mega complex in the town of Pomorie, on the southern Black Sea coast. The Rich Daddy project will deliver about 20 flats on a 0.9 ha plot...

The segment has never been tapped before and so the project is set to be a success, said project manager Velislav Petrov.

Rich Daddy should be finished by mid-2010 comprising seven buildings with two restaurants, swimming pools and a three-floor spa centre offering more than 50 procedures. The complex will be managed by an international company.

Off-plan apartment sales started a year ago at some £1,390-1,490 per square metre. Petrov said some 30 per cent of the flats have been sold, to Russians, Ukranians, Scandinavians, Spaniards and Bulgarians.

Real estate agencies say flats in the most overbuilt areas sell for about £400 per square metre. Properties in decent seaside locations are up for grabs for some £700. But customers are unwilling to pay around £1,500 per square metre for first-rate complexes.

Source: New Guide Bulgaria