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

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.

20.02.2008 Beach hotels must be demolished, says Savin Kovachev

The regional development deputy minister Savin Kovachev in Varna said that Hotels built on the beach-front, or occupying a part of it, are to be bulldozed, Dnevnik daily reports.
But this can only be reached if all relevent bodies do their work properly, he added.
First, the Regional Directorate for National Construction Supervision has to recognize the illegality of the constructions and issue demolition orders, Kovachev commented. Then the court has to sanction the resolution. This would then be followed by a body securing the safe demolition of the hotel in question.
Procedures on pull downing such developments started in 2002-2003 but many orders issued are still in court. Kovachev added that the ministry is facing a pile of lawsuits on establishments that partly fall within the bounds of the coastline or behind it.

19.02.2008 The apartments are offered for over 1300 euros per sq. m. in Tzarevo

The average price for apartment in Tzarevo is over 1300 euros per square meter, reference testified in one of the website for properties.
The summer resort offers 186 apartments for sale, as their area ranges from 24 sq. m. to 190 sq. m. The lowest offer is for 27 000 euros and the highest - 338 000 euros.
The average price of all offers is 131 EUR per sq. m.
This is over the half offer from the whole municipality in which there are a total 246 offers with average price -1210 EUR per sq. m.

18.02.2008 The military ministry sells nine real estates in Karlovo

Nine real estates in Karlovo that the military ministry tried unsuccessfully to commute against to apartments are already announced for sale. This became clear from notice in the website of the “State Property of military ministry”agency.
In last year the minister council permitted the department to keep back in its budget and to use for itself the issue-over 50 million levs.
In 2007 all incomes over this union were transferred in the state budget.
The nine real estates in Karlovo are private country possession and consist in shops on the street “Alexander Stamboliiski” 25 and 74, “General Karzov” 6 and 54 and “Vassil Karaivanov” 1. Four from the entities are in the centre of the city and the other - in second and third city zone. Their area ranged in 42,78 sq. m. to 142,83 sq. m. To two from the trade entities on “Vassil Karaivanov” there are cellars as well..

16.02.2008 Austrians expect downtrend in the rates of the bulgarian real estates

In 2008 is expecting the rates of the allotments for construction in Bulgaria to decline.
This said Vendi Pivodich from Austrian company of seminar for austrian investors in Bulgaria.
The rates of the allotments for construction are unduly inflated in Bulgaria.
In the present year is expecting that they subside to more bearable level.
"In the last months of 2007 year noted that the potential investors, the buyers, start a little to pull back. There is a tendency of waiting, because of expecting the rates of the allotments for construction to decline."

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