Chasing The Elexir

Fri 08 Feb 2008 – Gabriel Hershman Propertywisebulgaria.com
Photography: Svetoslav Stoyanov

Working ’smart’ is more important than slaving for long hours, says Atanas Garov, managing director of Colliers. And his record speaks for itself…

It’s 6pm on a bitterly cold December evening in Business Park Sofia. Staff at the Holiday Inn and surrounding cafes are fiddling with their collars. The area seems strangely quiet. Perhaps it’s just the post-work exodus or pre-Christmas lull because, by all accounts, the Business Park is a resounding success.

Sofia Skyscrapers

Mon 24 Nov 2008 – Zornitsa Lateva /Propertywisebulgaria/

RISING HIGH: The ‘new City’ on Todor Alexandrov Boulevard could feature at least three skyscrapers, but faces opposition because construction would require narrowing the boulevard, one of the busiest thoroughfares in Sofia. Photo: Zhivko Angelov
Try to imagine a colossal skyscraper in place of the statue of Sofia in the centre of the city. It would have happened too, if communist-era ambitions had been realised.

Property rentals soar in major Bulgarian cities

Mon 24 Nov 2008 by Nick Iliev /PropertywiseBulgaria/

The data showed that prospective clients were generally unconcerned whether the flat was in a newly constructed building or in a relatively old one. The main factors in making their decision is whether the flat has undergone recent refurbishment and whether it has the necessary appliances. Fully-furnished apartments are generally of older construction and on average command higher prices.

SLOVENIA’S MERCATOR TO RENT SPACE IN SOFIA’S MEGA MALL

16:28 Mon 17 Nov 2008 – Alex Bivol

Slovenia’s largest food retailer Mercator will rent space for a hypermarket in the Mega Mall in Sofia, currently under construction, deal consultant Raiffeisen Imoti, the real estate arm fully-owned Raiffeisenbank’s Bulgarian subsidiary, said on November 17, as quoted by Dnevnik daily.

 

Mega Mall is developed by Austria’s Real4YOU Immobilien. Its leasable area will be 24 000 sq m, split between more than 100 shops. The area earmarked for the hypermarket is 3054 sq m.

 

With more than 1500 stores in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro, Mercator plans to expand on the Bulgarian market as well, targeting the bigger cities and towns in the country, Dnevnik said.

 

In February, before the recent downturn in the global financial markets, Mercator said that it would invest 220 to 260 million euro annually between 2008 and 2012, using both its own sources and debt capital.

On November 12, the group reported a net profit of 36.4 million euro for the first nine months of the year and a revenue of about two billion euro.

Source: Propertywisebulgaria.com

ORCHID DEVELOPMENTS SELLS ZLATNI PYASSUTSI HOTEL FOR 9.9M EURO

Orchid Developments, an international property developer focusing on Bulgaria, said on November 17 that it sold Yavor hotel in the Black Sea resort of Zlatni Pyassutsi for 9.9 million euro.

The developer had said in September in its interim results that it expected the sale of Yavor Zlatni AD, the subsidiary company taht owns the hotel, to complete in October 2008.

The completion process has been advanced and on November 12 the purchaser paid the consideration of approximately 9.87 million euro into two escrow accounts. The company anticipates that the transaction will be completed by the middle of December 2008,” Orchid said in a statement on the London Stock Exchange’s alternative investment market, where the developer is listed.

Source: Propertywisebulgaria

Financial Crisis Hampers Sale of Bulgaria Defense Ministry Real Estate Property

About half of all military real estate property tenders have failed due to lack of investors’ interest, the Bulgarian Defense Minister Nikolay Tsonev announced on Monday during a discussion about the 2009 State budget.

Tsonev was, however, firm that the practice of exchanging military real estate property would not be reinstated.

15 out of a total of 30 tenders of properties belonging to the Bulgarian Defense Ministry did not have any interested candidates and have been canceled, the Minister explained, adding that he was quite pessimistic about any possible future sale of those properties due to the effects of the global financial crisis.

Tsonev further said that he hoped that the failure of those tenders would not have a negative effect on his Ministry’s social program.

1,99% of Bulgaria’s Gross Domestic Product (GDP) are slated for the Defense Ministry. The Ministry’s planed budget, including the sale of the real estate properties is for over 2% of the GDP.

Novinite.com

Miller seals deal for huge Bulgarian mall

The 33,000sqm Mall Varna comprises 150 shops plus leisure facilities, including a multi-screen cinema, bowling alley and food court

Property group Miller Developments has completed its biggest property transaction in continental Europe after reaching agreement on a 120 million deal for the investment purchase of the largest new retail and leisure development in Bulgaria.

Mall Varna, which started trading in June 2008, is located in Varna, Bulgaria’s second-largest city and the country’s leading tourist destination. The city is also increasingly becoming a focal point for overseas investors.

Keith Miller, chief executive of the Miller Group, described Mall Varna as an “impressive addition” to the company’s portfolio. “The investment is part of the group’s ongoing strategy to expand its presence in Europe,” he said. “Despite the current economic climate we expect the retail market in Bulgaria to continue to grow, making this prime asset a very attractive investment opportunity.

“This latest acquisition means Bulgaria is one of eight countries in which we are now operating outside the UK.”

Funding for the deal was provided by the Austrian bank group Raiffeisen. Miller Developments represented itself, while Cushman & Wakefield, in association with Forton International, advised vendor Interservice Uzunovi.

The 33,000sqm Mall Varna comprises 150 shops plus leisure facilities, including a multi-screen cinema, bowling alley and food court. It boasts an international line-up of tenants, featuring big-name retailers such as Adidas, Esprit, L’Occitane and Swarovski.

Phil Miller, chief executive of Miller Developments, said: “Only the best deals are obtaining finance in this market so this deal underlines the capability of the Miller Developments team to source and execute the best transactions.”/ Sunday Herald

Source: Econ.bg

Bulgarian-Israeli tie-in to build congress hall in Veliko Turnovo

Bulgarian company CBA Property Investment, the real estate division of discount retailer CBA Bulgaria, has teamed up with an unnamed Israeli investor to raise a five-star congress centre and a shopping mall in Veliko Turnovo.

The news was announced during Israeli ambassador Noah Gal Gendler’s visit to the town in central Bulgaria. Veliko Tarnovo offers investment opportunities in construction, transport, tourism and trade, Gendler said.

Israeli investors are also expected to be involved in the construction of a shopping mall in the town.

Veliko Turnovo is close to the Gorna Oryahovitsa airport and could be used for charter flights between Bulgaria and Israel, but for that to happen, the road infrastructure in the area needs to be upgraded, Gendler and Israel’s honorary consul in Bulgaria, Krassimir Metodiev, said.

Propertywisebulgaria.com

European standards

Bulgaria Real Estate Sector to Meet European Standards

22 October 2008

In the next six months, unified European standards, regulating requirements towards real estate agencies, are going to be adopted in Bulgaria, according to Maya Staneva, Executive Director of the Bulgarian Institute for Standardization.

Free Wireless Internet in Sofia Parks

Sofia City Council Moves to Provide Wireless Internet in Parks

23 October 2008, Thursday

The Sofia City Council allocated Thursday BGN 180 000 for the setting up of a wireless Internet system in the parks of the Bulgarian capital.

Apartment Prices in Bulgaria Up

Apartment Prices in Bulgaria Up by 3% in Third Quarter of 2008

23 October 2008, Thursday Source: Novinite.com

he average apartment prices in Bulgaria grew by 3% in the third quarter of 2008 compared to the second quarter of the year, according to data from the National Statistical Institute released Thursday, which excludes property in newly constructed buildings.

BULGARIAN REAL ESTATE SLUMPS IN VALUE

Original article by: 13:29 Tue 21 Oct 2008 – Nick Iliev

Land plots in resorts or near big cities have witnessed the sharpest decline of over 28 per cent as the drastic decrease in demand has burst the bubble of their artificially inflated prices, Iskrov said.

Land plots in resorts or near big cities have witnessed the sharpest decline of over 28 per cent as the drastic decrease in demand has burst the bubble of their artificially inflated prices, Iskrov said.

The Bulgarian real estate market has enjoyed years of gradual growth, with prices constantly being on the upturn providing a healthy climate for the sector. These were the days of predictability and affluence. Not anymore, being on the outskirts of the hurricane of financial trubulence slowly approaching the country from the West, prices have taken on a sharp decline, as offers on the leading property websites in the country show.

Residential market: luxury is in demand!

Real estate market, Bulgaria, 1990. The idea of a decent dwelling equals to a new panel block of flats long-awaited to become suitable to live in. The space around the block provides vast green areas.
Eighteen years later the model shifted to a gated community of small blocks of flats located in a prime capital neighborhood. The dream home is associated with easy access to major transport thoroughfares, security, maintenance and property management, cleaning services, dinner and babysitter on order and gym under the building.

Bulgarian corruption troubling the European Union

By Doreen Carvajal and Stephen Castle

The International Herald Tribune

SOFIA: Politics is played to the death in Bulgaria, where the lives of politicians can be as cheap as spent bullets and murky business groups wage a murderous struggle for their cut of everything from real estate deals to millions in European aid.

During a furious political season last year, the home of the chairwoman of a municipal electoral committee was set on fire and the garages of mayors were firebombed. The mayor of a golf resort town in central Bulgaria was shot and killed with seven bullets – the same number that killed the wealthy city council chairman in the outwardly idyllic Black Sea port of Nessebar.

“Other countries have the mafia,” said Atanas Atanasov, a member of Parliament and a former counterintelligence chief who is a magnet for leaked documents exposing corruption. “In Bulgaria, the mafia has the country.”

By almost any measure, Bulgaria is considered the most corrupt country in the 27-member European Union. Since it joined last year, it has emerged as a cautionary tale for Western nations confronting the stark reality and heavy costs of drawing fragile post-Communist nations into their orbit, away from the influence of Russia.

The United States helped Bulgaria into NATO, has rotated troops through for joint exercises since 2004 and has tried to encourage commerce, education and democracy. It has just announced that it will invest more than $90 million in the next two to three years in facilities and equipment for joint military exercises in Bulgaria.

You can see the full article at the IHT site

Blogged with the Flock Browser

Tags: IHT, Bulgaria, corruption, politics

Boom in Eastern Europe is not entirely finished. There is still strong price increases in Bulgaria.

World property market slide worsens

Global Property Guide

Last Updated: Sep 23, 2008

As financial markets tumble, the world’s housing markets have continued to slide during the year to end-Q2 2008.

Inflation-adjusted house prices fell in 21 out of the 33 countries for which there is up-to-date published data.

= more than 1 percentage point increase in house price change  = less than 1 percentage point decrease in house price change  = more than 1 percentage point decrease in house price change compared to same period of last year *corrected  Source: Various series, data descriptions and sources here

The Baltics, the US, the UK and Ireland led the global decline during the year to end-Q2 2008, the latest date for which comprehensive global statistics are available.

The biggest house price declines took place in Latvia, previously a leader of the global house price boom. House prices in Riga have fallen by 21.23% in nominal terms during the year to end-Q2 2008, and 33.08% in real terms.

Prices in Estonia’s Tallinn fell during the year by 11.02% in nominal terms, and 14.06% in real terms.

Quarterly data suggests that things are getting worse, with declines in inflation-adjusted house prices over the quarter in all except 9 of the 33 countries tracked. Latvia’s Riga saw the largest quarterly decline during Q2 of 2008, with average dwelling prices falling 5.20% in nominal terms, and 8.16% in real terms.

While quarterly data are subject to seasonal variations and are thus less reliable, the slide suggests that the situation is worsening.

Dramatic downturns

Since last year, there has been a dramatic turn-around in the world’s housing markets. Only 5 countries out of 33, at this stage last year, had seen y-o-y declines in house prices in real terms. This year’s total is 21.

Even in countries which have continued to record house prices rises over the past year such as China (Shanghai was up 36.32% y-o-y in nominal terms at the end of Q2 2008, 27.28% in inflation-adjusted terms), transaction volumes have fallen sharply, suggesting that buyers are now nervous.

While property markets in some regions such as the Middle East apparently remain in boom, it is hard to confirm this by reliable data. With the exception of Israel, none of Middle East’s property registries, statistical institutes or central banks publish good data on housing markets.

A final thought: It seems interesting that Slovakia’s house prices are still accelerating, having risen 32.20% this year (a rise of 25.57% in inflation-adjusted terms), as against a rise of 20.47% y-o-y to end-Q2 2007 (a rise of 17.56% in inflation-adjusted terms).

Clearly, the boom in Eastern Europe is not entirely finished. There have also been strong price increases in Monaco, Montenegro and Albania, although no official house price statistics are available.

= more than 1 percentage point increase in house price change  = less than 1 percentage point decrease in house price change  = more than 1 percentage point decrease in house price change compared to same period of last year *corrected Source: Various series, data descriptions and sources here

Rescue efforts

The efforts to rescue the world’s housing markets are becoming increasingly global.

In the US, the authorities are seeking a US$700 billion “mother of all bailouts” package to purchase almost all of the country’s bad mortgage debt in an effort to unfreeze the nation’s credit markets.

In the year to end-Q2 2008, house prices in major US cities fell 15.4% (18.9% in real terms) from a year earlier, according to the Case-Shiller house price index. It was the sixth consecutive quarter that the house price index dropped year-on-year.

In the UK, the stamp duty exemption has been raised to £175,000 from £125,000 for houses purchased from September 2008 to September 2009. The government also unveiled a £1 billion package to assist first time home buyers and households struggling with their mortgage payments. In Sept. 2007 Northern Rock, one of UK’s largest lenders was bailed by the Bank of England.

In the year to end-Q2 2008, house prices in the UK fell 6.33% (9.77% in real terms) from a year earlier, according to Nationwide.

In Spain, the government released a €3bn rescue package. Certain real estate investment companies were given tax breaks to rent out unsold new homes for a fixed period.

In the year to end-Q2 2008, house prices in Spain rose 2.00% (a fall of 2.49% in real terms) from a year earlier, according to official statistics (which are widely believed to understate the problem).

In Ireland, the 2009 budget will include a “stimulus package” providing assistance to first-time homebuyers.

During the year to end-Q2 2008, house prices in Ireland fell 9.65% (13.92% in real terms), according to official statistics.

In South Korea, the government is set for tax breaks and easing restrictions on construction.

In the year to end-Q2 2008, house prices in South Korea rose 4.94% (a fall of 0.88% in real terms), according to official statistics.

Thailand and Indonesia are mulling the relaxation of foreign ownership limits to lift their housing markets.

During the year to end-Q2 2008, house prices in Indonesia rose 5.60% (a fall of 4.18% in real terms), according to official statistics.

Source: Global Property Guide

What is the rental yield in Bulgaria? The answer is Quite Good!

This information is taken from the site of the Global Property Guide. The nubers speak for themselves.

Rental yields FAQS

Comparing rental yields: Europe

If rental yields are high, does it mean that it is a good investment option and I should invest immediately?

Well… no. We present gross yields and not net yields. From the gross yields, you still have to deduct taxes, maintenance fees and other costs. You should also compare the gross yields with current bank interest rates, inflation rate and the risks you are taking in investing.

The rental returns on owning property in different countries varies greatly. For instance in Europe, in early 2007, the range was from around 14.13% in Moldova’s capital Chisinau, to 2.43% in Monaco. The trend had been for rental income returns to fall, because rents are not keeping pace with prices anywhere in Europe. As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.

To some extent rental returns appear to correlate with risk. Most of Europe’s ‘high yielding’ countries are in the East. Apartments in four Eastern European capitals earn above 10% rental returns: Chisinau, Moldova (14.13%); Warsaw, Poland (13.28%); Sofia, Bulgaria (10.56%); and Bratislava, Slovakia (10.06%). The higher risks of the East may be a factor in these returns (high corruption, political risks).

How about places with seasonal rents?

In some markets such as the Caribbean and the Pacific, most rents are seasonal. When the developed world is experiencing harsh winters, its wealthier citizens escape to sandy white beaches in the tropics. This leads to unexceptionally high demand during peak seasons and virtually zero occupancy during lean seasons.

For these places, we are moving away entirely from using seasonal rentals, as we find the results unreliable. For this and other reasons, the countries for which we have price data don’t always overlap with rental income data countries.

Source: Global Property Guide

What awaits the panel housing market in Bulgaria

 

 

What is the future of the panel housing market, you provide easy financing for their purchase and what is the attitude of banks to this type of housing? These were some of the issues that participants in the panel discussion devoted to the housing market in Bulgaria, commented during the conference on real estates BalRec – Bulgaria, which is taking place today with media partnership of Investor.bg.

Reason for the discussions was information that some banks have stopped granting mortgage loans for the purchase of panel apartments.

Martin Gikov team leader of real estate financing at UniCredit Bulbank, said UniCredit continues to grant credits for panel apartments. The credit applications are assessed more carefully compared to before, as with other properties.

“The question is what is the life of a housing panel,” commented Ilian Nikolov, regional director of RE / MAX Bulgaria. “This is almost a temporary building, but a building, which as time passes and the older it gets, the more it will fall apart. According to him it is natural banks to be more cautious about lending for the purchase of such property.

“Banks are always looking with a different eye of panelkite” said Tihomir Toshev, executive director of credit consultant Credit Center. “Even up to date when the market grew, they were more cautious.

He is of the opinion that there will be mortgage financing in the future of panel homes, but requirements for own funding will become higher. Estimates are that banks will require buyers of panel homes to have between 30 and 50 percent equity.

“A panel housing market will always exist“, says Katia Price, managing partner and executive director of Address Real Estate. “ Although they had reached prices that do not meet their quality up till now, the market will now drive them down and they will become available for people with lower margins, which can finance them themselves.

From: Angel Milev
angel@investor.bg

Source: Investor.bg

“Mall Sofia” is now German

Mall Sofia has changed ownership Source:www.imoti.net

The German company “Degi Deutsche Gesellschaft fuer Immobilienfonds” is the new owner of the commercial complex type “mall” – “Mall of Sofia.

The Commission for Protection of Competition has approved the transaction, which is the second resale of Mall of Sofia.

The Germans also wanted to acquire the other large mall in the capital – “City Center Sofia”, but where not sucessfull.

For the “City Center Sofia”, with an achieved yield gained of 7.1 percent,a better offer was given by the American “Haytman”. For only 101 million USD in this lack of funds on the financial markets, they made a better offer and beat the Germans in the bid.

A look back to the short history of Sofia shopping malls shows that the initial investors included (IT) “International Theatres” – with half the investment and Israeli companies “Ocif” and “Aviv” – with a quarter of the capital.

In 2006 throught two transactions the property was acqired by the Irish investment fund “Quinlan Private” and “General Electric”.

And after just two years of ownership the ownership of the Sofia shopping malls went into the hands of new owners.

Source: imoti.net

U.S. financial and Bulgarian stock problems continue

 

Source: imoti.net

Investors have withdrawn from  U.S. mutual funds in September record 72 U.S. dollars billion, rputting them in bank deposits insured by the authorities in view of the deepening financial crisis, announced the agency Blumberg. 
According to TrimTabs Investment Research, Investor withdrew 43.5 U.S. dollars billion from stock funds and 28.8 U.S. dollars billion of collective investment schemes to invest in bonds. 

 

These are money funds, which invest in shares not only the U.S. but worldwide, including Bulgaria. 

The withdrawal of funds continue during the second week of October. Until Oct. 3 of them 49.3 U.S. dollars billion was directed to banks. 

Investors are also withdrawing from contractual and mixed funds 8.8 U.S. dollars billion and 4.1 U.S. dollars billion. 

But TrimTabs calms that investors who continue to invest in Exchange-Traded Funds, which invest in U.S. companies. But these operations are 4 times less than a week ago – from 15.1 U.S. dollars billion to only $ 4 billion 

According to Morningstar Inc., The five leading U.S. diversified funds, including Fidelity Investments and Vanguard Group Inc., For 9 months have reported losses of 28 percent. 

Meanwhile, after a brief recovery indices of the Bulgarian Stock Exchange (BSE) is thrown down again last week session. 

SOFIX lost 5.63 percent to 602.82 points. “Diary 20″ dropped by just over 5 percent to 78.69 points. All other indicators also are red. 

The reason is another failure of the international stock markets, after the panic and mistrust among investors again took top in U.S. markets.

Source: imoti.net

REALTORS RACING AGAINST TIME AMID FINANCIAL TURBULENCE

16:16 Thu 02 Oct 2008 - Nick Iliev

Sofia City Centre shopping mall is a prime indicator that the time has come when large projects are gagging to be sold. The mall recently went for 101.5 million euro to Heitman European Property Partners III. Equest Balkan Properties, the previous owner and operator of the site, bought the mall two years ago for 94 million euro.

The meltdown of financial markets worldwide is reaching morbid proportions and real estate investors are facing a race against time to avoid being embroiled in the collapse. Realtors are eager to sell every large site, office or trade facility that they have available. The current trend is not to “cry wolf” and raise general alarm, but sell as fast as possible every major project, brokers have told Bulgarian-language Standart daily on October 2 2008.

The goal is to repay the money as quickly as possible, in cash, as it is unclear yet which way the Bulgarian real estate market will swing. However, the spectre of financial disaster in US real estate market is making local investors and developers nervous and impatient, and they are looking to offload their investments immediately.

Those with cash will be able in two or three years’ time to go shopping in Bulgaria at their leisure, buy great properties cheaply as, by then, there will be a surplus of real estate in the country ripe for the taking. This trend has been observed in the larger holiday resorts, the so-called PUDs or Planned Utility Developments - gated residential areas with their own recreational facilities, as explained by Luchezar Iskrenov, Head of the National Committee for Real Estate told Standard.

In the past few months the demand for such projects has dropped significantly. Developers in turn are eager to offload and sell at a much lower price entire condominiums, rather than individual units at a proportionally higher price. This is because developers are eager for a return on investments and, in light of the impending financial meltdown, they want to transform those projects into liquid cash as soon as possible, Iskrenov added.

Sofia City Centre shopping mall is a prime indicator that the time has come when large projects are gagging to be sold. The mall recently went for 101.5 million euro to Heitman European Property Partners III. Equest Balkan Properties, the previous owner and operator of the site, bought the mall two years ago for 94 million euro.

The profit – a meagre 7.5 million euro – is not the kind of return one would expect from such a large site, according to the country’s financial experts. And the trend for the future is that such large projects are likely to change hands several more times.

Globally, such malls can be resold up to five or six times before they are purchased by a firm which will finally take control and manage them permanently. Those sorts of deals are not unlike how family homes or apartments change hands. These large deals involve huge sums of money, and are brokered and managed by agencies who operate with VIP clients under an cloak of secrecy.

Source: PROPERTYWISE.COM

SOFIA THE MOST EXPENSIVE CITY IN BULGARIA

Living in Sofia was more expensive than anywhere else in Bulgaria, an Industry Watch report on cost-of-living index showed.

Bourgas and Varna were the second and the third most expensive Bulgarian cities, the report said as quoted by Focus news agency. The prices of goods and services in Bulgaria’s second biggest city, Plovdiv, are by 20 per cent lower than prices in Sofia. Living in the city of Pleven is 22 per cent less expensive than in the capital. Pleven turned out to be the most inexpensive city in the country, Focus said. Non-expert staff earned the most in Sofia, the research showed. Workers having low qualification were also well paid, but the difference in the wages in other cities was almost insignificant.Industry Watch said that the results confirmed the ones of the previous three cost-of-living index analyses.

Source: sofiaecho.com

Local tax rises start in Sofia

Sofia municipality collected 28 million leva in building tax and 115 million leva in refuse collection fees in 2007.

Local tax on buildings and automobiles and fees for issuing construction permits in Sofia will increase this year. Refuse collection fees in the capital, however, will be reduced, whereas tax on patents will remain unchanged.

These are a few of mayor’s administration motions to be discussed by the Parliament’s Budget Committee and Sofia Municipal Council.

Unlike Sofia, most of the smaller municipalities throughout the country do not envisage increases in local fees and taxes, Pari daily wrote.

This is the first year that municipal councils have been allowed to determine the value of local taxes on buildings, vehicles, inheritance, real estate transactions and patents. They are permitted to raise the amount of tolls two to three times above current levels but cannot lower them. Local governors are to determine the new tax values by the end of February.

 - Real estate
Tax on buildings in Sofia will rise from 1.5 to 2 per milles and refuse collection fees will decrease. Currently, tax on buildings varies between 50 and 120 leva and the increase will be between five and 10 leva.
“There are many new buildings, having high tax appraisal, and we expect to receive the resources necessary for infrastructure development,” said Minko Gerdjikov, deputy mayor on financial issues.
Sofia municipality collected 28 million leva in building tax and 115 million leva in refuse collection fees in 2007.

 - Construction permits
Sofia municipality raised the fee on issuing construction permits on city centre plots to 14 leva a sq m in 2007. This year’s proposed figure is 21 leva a sq m. Revenue will be allocated primarily towards road construction, the sewerage system and lighting equipment in the capital, governors said in an attempt to justify the increase.
Business people fear that the projected rises may trigger a decline in construction activity and investor withdrawal. Professional organisations insist on receiving guarantees that money will be spent to improve infrastructure.

Source: Property Wise Bulgaria

Russian websites full of Bulgarian property offers

Russians prefer investing in high-quality establishments, either on the beach-front or with mountain views if at ski resorts.

Russian property websites are now full of offers for Bulgarian real estate, Monitor daily wrote. More than 7 000 offers – out of a total of 24 000 – are now for Bulgarian developments indicating an increased Russian interest in Bulgarian properties, primarily in the holiday property segment. There are interesting offers for resort flats in Nessebur, which are sold off-plan at 750 euro a sq m.

Unlike the Irish and British, Russians do not usually buy for speculative reasons. Instead they want to reside in the homes purchased. They prefer investing in high-quality establishments, either on the beach-front or with mountain views if at ski resorts.

Russian client would not buy a resort apartment which has not been fully completed and is still in gypsum plaster and cement paste. These customers seek mainly turnkey offers for holiday units, according to brokers’ observations. They add that Bulgaria is becoming a popular location because of its geographical and cultural closeness to Russia.

There is also an interest in apartment complexes situated in balneological resorts – like Sandanski, Velingrad and Banya village (near Bansko).

Rapid appreciation of real estate in Russia, particularly Moscow, is another factor stimulating interest in Bulgarian real estate. Middle class people opt to invest in property abroad so as to secure their money against devaluation.

Out of EU countries, only Latvia rivals Bulgaria in terms of the number of offers on Russian property websites. And yet, the total number of Latvian offers is less than half of those offered by Bulgaria.

Cyprus, which is popular with Russian holiday real estate buyers, is represented through some 2200 sale offers. Spain, Montenegro and Turkey lag far behind with 1981, 1089 and 1081 offers respectively.

Source: Property Wise Bulgaria
 

4-star Hotel Opens for Business at Tsarigradsko Shosse, Sofia

The newly-built 4-star Metropolitan hotel located on 64 Tsarigradsko shosse Blvd, Sofia has officially opened for business. Valkanov & Milanov, a Sofia-based construction company is the investor and developed of the hotel. The investment in the project exceeded BGN 16 million. More info here Source: BulgarianConstruction

BenchMark to Run 2 New Contractual Funds

Bulgaria’s financial regulator licensed BenchMark Asset Management AD to organize and run two new contractual funds – Benchmark Fund-5 CEE and Benchmark Fund 4 Energy. The shares of the two new funds are planned to be offered for sale by the end of January or in mid February. More info here Source: BulgarianConstruction

German Retailer to Develop New Logistics Center Near Plovdiv

German discount retailer Kaufland is to develop a new logistics center near Plovdiv. It is to occupy a 20,000 sq m site located in the Rakovski industrial zone. The construction works are planned to kick off in February 2008. The project is designed by Bates Bulgaria. More info here

Source: BulgarianConstruction

The BrickRanch

This is a site about real estate that I like and visit often . It is run by Theres Lussier and is about Huber Heights Ohio.
It has some helpfull info. To find out what it is all about go and visit the BrickRanch.

Good Morning World

Good morning to all.

I woke up this morning, had a nice warm glass of coffee and started the dayby looking around the net for info about real estate in Bulgaria. I must confess, this is what I do, I am a real estate broker agent and have my own agency RM Estates. Finding such information difficult, finding information about the real estate markets in Bulgaria in English is not easy. I could see a few posts available, containing some news pieces, but not enough. Most of the info available were ads in english about selling real estate. In Bulgarian there are quite a few pieces of information, but not in english.

So I though to myself, OK, lets start puting up some info….maybe it will be useful to someone.

So here goes.