Latest Property and Economy news from Bulgaria. News for Visitors and Investors

04.03.2008 Demand for apartments shifts to outskirts

Prices run high by 54 per cent and 39 per cent in Sofia and Varna respectively. Rousse saw a 31-per cent increase in residential property prices in 2007.Demand for residential properties in the outskirts of big cities picked up in 2007.
Increased demand may be attributed to the small number of real estates for sale and the expensive prices in downtown areas as well as to the building of gated complexes that raises the supply of residential real estates in suburbs, Pari daily reported on March 4.
Demand for residential real estates exceeded supply in 2007, according to Dobromir Ganev, manager of Foros. Buyers are genuinely interested in old residential real estates in downtown areas of cities but due to the poor supply are opting for real estates in the outskirts.
In Sofia demand is picking up in southeastern residential area, such as Mladost. The area is close to Business Park Sofia, which is another priority.
In Bourgas there is strong demand for residential real estates in the Meden Rudnik and Sarafovo districts.

01.03.2008 WWF Bulgaria warns of ongoing construction in Rila

The local branch of World Wildlife Fund (WWF) said in the declaration that building work was carried out in the national park and the Rila buffer zone, both of which are suggested to become part of a protected tract under the Natura 2000 environmental network.
The building was part of the planned ski zone Panichishte-Ezerata-Kaboul, which was yet to secure a construction permit, WWF Bulgaria announced.
More than 70 000 people had signed an Internet petition against the illegal building in Rila. Its authors plan to forward the signatures to the commission on petitions at the European Parliament, Bulgaria’s Environment and Water Affairs Minister Djevdet Chakurov, Parliament’s Commission on Environment and Waters, investor Rila Sport and Sapareva Banya municipality, which is answerable for the conservation of the Rila national park.

29.02.2008 Three new residential districts to be developed in Bourgas

Bourgas city hall plans to build three new residential regions in the suburbs, it emerged after mayor Dimitur Nikolov and his deputy in charge of building, Kostadin Markov, met Bulgaria Building and Construction Chamber's members and members of the Chamber of Engineers in Investment Projects, Dnevnik daily announced on February 28.
Kiosheto neighbourhood, the districts between Sarafovo and Bourgas and Kraimorie neighbourhood will be developed as residential areas. The buildings planned for building are two- and three-storeys, but also skyscrapers.
The required infrastructure for the future residential boroughs will be built up with a concession agreement or public-private partnership. The city hall plans to call the tenders in March.
Bourgas mayor and the Construction Chamber chair person Dimitur Yanakiev signed a co-operation memorandum.

28.02.2008 Mortgages finance more than half of property purchases

More than half of Bulgarians seeking to buy real estate will use mortgage loans to finance the purchase, a survey commissioned by Raiffeisenbank and carried out by GfK Bulgaria showed, as quoted by Bulgaria news agency (BTA).
The survey, carried out between January 7 and 15, covered individuals aged between 26 and 55 in Sofia, Plovdiv, Varna, Bourgas, Rousse, Pleven and Stara Zagora.
Mortgage loans are thus the most popular means of financing, with only 17 per cent planning to pay with their own money, and eight per cent would sign hire-purchase agreements.
About 5.4 per cent of respondents said that they have used a loan in the last five years and 10.2 per cent said they planned to use one in the next two years.
Bulgarians prefer to own their home, the survey shows. Until lately, living in rented real estate was a viable alternative for young people early in their careers, but acquiring one's own real estate has become a aim for many Bulgarians lately, GfK Bulgaria said. Increasingly easier access to bank funding in recent years has given a new impetus to the traditional consumer preference to own a home, according to its analysts.

27.02.2008 Sofia’s suburban areas are gaining ground

The lack of empty construction pieces in Sofia and the resulting high prices are driving investors beyond the city boundaries to suburban regions in search of available building space, Kapital weekly reported.
Unsurprisingly, the capital is the most heavily populated and built-up area in the country, whereas suburban villages in Sofia region are one of the country's most scatter inhabited areas.
But prompted by lack of available land for building, as well as the desire to escape urban congestion and noise, many investors have set their sights on areas around Sofia in last months.
In accordance with the provisions of Sofia’s new master plan, in 15 years’ time about one third of Sofians will live in the city’s suburban areas and villages, Kapital weekly commented. The new zoning concept favours development to the north and Sofia’ s chief architect Petar Dikov has been re-iterating that the north will see a drastic face-lift to emerge as a basic location.

26.02.2008 Balkan Real Estate Conference – Bulgaria, Rumania, Serbia begin in April in Sofia

The second regional conference -"Balkan Real Estate - Bulgaria, Romania, Serbia” will be held in 15 and 16 april 2008 in Kempinski Hotel Zografski, Sofia.
An organizer of the event is BalPEx - Balkan Property Exhibition – the lead international exhibition for real estates in the country and the region in partnership with the international consulting companies "Colliers International" and "Pricewaterhouse Coopers".
For the international media partner was attracted Financial Times team.
Experts, agents of one of the biggest companies in business environment, will present the possibilities that the market for the real estates in Bulgaria, Rumania, Serbia offers. The experts will discuss the investment climate in the region and will present useful information for the trends.

25.02.2008 Agro Finance REIT buys 200 ha of land in January

Local real estate investment trust (REIT) Agro Finance, dealing in securitisation of arable land, acquired 207.2 ha of agricultural land in January, the company said in a filing with the Sofia Stock Exchange.
Currently, the fund’s assets stand at 15.397 million leva, at an average acquisition cost of 2259.4 leva hectare.
About 92 per cent of Agro Finance cultivate land is located in Northern Bulgaria.
In recounted news, Bulland Investments REIT officials announced that they had bought a 2 004 sq m stretch of arable land at the price of 144 000 euro in the village of Obelya. The fund also has three other company-owned pieces, which brings their total area to 7 693 sq m.
The purpose of the land acquisitions is to consolidate the smaller pieces into a larger real estate which will be rezoned for commercial development.
In another deal announced last week, Bulland bought 0.2 ha of land in Sofia residential district Bozhurishte for 120 000 euro.
The piece is adjacent to a Citroen showroom facility on the Sofia-Kalotina international road.

23.02.2008 The asian construction contractor CapitaLand with 49 % a stature of the profit

The biggest construction contractor in south - east Asia “CapitaLand ‘ Ltd, account a stature from 49 % of its earning for the fourth trimester, toward the same period for the year earlier. The reason is that Increasing the prices of the investings in real estates and the sale of larger number of inhabitancies in China, Australia and Singapore, announce Bloomberg.
The net profit is being boosted up to 674,7 million singaporean dollars (478 million states), or 23,1 cents of campaign of the trimester to 31 december.
The earning for the entire year increases over two times-up to 2,76 billion singaporean dollars over the high prognosis of agency companies for 2,31 billion.
Capital Land and its competitor City Developments and Keppel Land are standing against decreasing demand in the internal market, after shallowing this month Singapore its prognosis about a stature for 2008 as well announced that it can fall into recession because of the economic slump in USA.

CapitaLand, that own real estates in over 90 cities around the whole world, is expanding in China, Malaysia and Russia and is trying to decrease its dependending toward Singapore .

The head beginning of issues of the company is the sales of the internal market. In last year CapitaLand has sold 1430 housings for over 3 billion singaporean dollar in Singapore.
For this year the group is planning to offer les properties ( between 800 and 1000) for selling in Singapur, where the prices of the real estates can growth with 10 % and not more.

22.02.2008 Demand for Sofia real estate still rising

Interest in Sofia real estate investment projects is continuing to rise notwithstanding fears that there are already too many players on the market, a recent report suggests. A survey conducted by a property investment company suggests that while demand for homes in Sofia is growing, it is not as easy to meet buyers' expectations as it was several years ago.
People now have an entirely different approach to home-seeking, according to a property investment company research. They are more educated and discerning and have higher expectations.
Building companies are therefore advised to curb their tendency to simply build as many homes as fast as possible because current Sofia's real estate buyers have numerous requirements for location, landscape, interior design, quality of construction materials, nearby amenities and many other factors. People realise that buying an apartment is a crucial investment and they want a home that can meet or boost their lifestyle.

21.02.2008 REIT FAIRPLAY PROPERTIES -SPARK INTEREST

About 41 per cent of the corrects issued as part of the capital raise of native properties investment trust FairPlay Properties, a unit of estate contractor FairPlay International, have not been picked up by investors and will be void.
Of the 20 830 880 only 61 100 sudden rights were completed at the February bourse auction.
This means that if the remaining rights are exercised and depositor signed and then pay up the part to which they are entitled, the company will raise capital by around 60 per cent of the target amount.
The REIT is currently performing its 5th capital increase from 50.7 million to 60.84 million lv.
For the intention of the raise, FairPlay Properties is proposing 10.14 million new parts with an publication price of 2.25 lv. per lot. The firm placed 50.7 million rights.
50 per cent is the minimum subscription target. The board chairman Manyu Moravenov announce
That the business plans of the company are based on a 50 per cent capital raise in light of the present market environment.
The REIT has already issued debt and the design pipeline would require bank financing rather than the placement of more bonds, said the company official.
The fund's investment projects comprise the 3th phase of the Santa Marina vacation village near Sozopol, the Rila Lake Resort growth near Panichishte and a handful of other plans in the Sandanski, Chernomorets and Bansko areas.

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