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19.08.2009 Housing Prices in Bulgaria Continue to Decline

Between January and June, housing prices decreased by 23 per cent on average compared with the same period of 2008. Experts expect prices to continue to decline at least by the end of the year.
Overpriced properties in the bigger cities have fallen by 30 per cent or more. In Sofia's residential areas of Lyulin, Drouzhba, and Obelya an apartment in a pre-fab construction block costs 30,000 euro. In the Borovo residential area properties sell at 650-660 euro/sq m, where a year ago prices exceeded 1,000 euro/sq m.
Housing prices in the Student Town have decreased least, below 10 per cent.
In Sofia and Varna over the past two months demand has grown after lending eased and buyers are convicted that now there are good value for money offers.
According to a survey into what drives people to sell, 32 per cent say they have money troubles, which they are trying to solve by selling unused property. Only 17 per cent are forced to sell for falling behind on mortgage payments.
Properties with prices close to their market value will continue to sell, while those whose price is upped will be on the market for months.
It is still too early for properties to sell at their cost, with no margin for profit. On average, a square metre costs between 350 and 400 euro, experts say, but new construction is offered at 700-800 euro. Construction companies, having concluded deals at 1,000 euro/sq m, are able to wait until the crisis is over and not lower prices, experts say.
Purchases of newly constructed property make up just 20 per cent of all purchases over the last six months and continue to decline.

27.07.2009 Property price have fallen by nearly 10 per cent in the second quarter

The index of market prices of the houses for the second quarter of 2009 toward the first quarter of 2009 is 90,3%. That means that the average reduction of the market prices is 9,7%.
This represent a slow down in the pace of reduction towards the quarter period under review decline of 12,4% in the first quarter.
Compared to same quarter of last year the average reduction in the market housing prices in the second quarter was 21,9%. For the previous quarter annual drop in prices was 8.4%.
In the second quarter of 2009 compared with the previous was registered price reduction in all regional cities as follow: Ruse- 14.4%, Vraca- 14.3%, Plovdiv- 14.1%, Burgas- 12.3%, Pleven- 12.2%, Sofia- 11.9%
The average market prices of the housings for the country is 1074,98 BGN per sq.m, as the highest is in Varna- 1827 BGN per sq.m, following of Sofia- 1745 BGN per sq.m and Burgas- 1471, 67 BGN per sq.m. The lowest average price recorded in Kyustendil- 540,85 BGN per sq.m.
The index of prices for homes assess the overall relative change in prices of existing homes - apartments (excluded are new apartments, houses, luxury homes). Subject of statistical research are actual sold prices of properties in the district households cities.

23.07.2009 Experts Recommend Buy to Let for Properties in Bulgaria

The credit insulation, Creditex, reported that the prices of the residential properties in Bulgaria are decreasing faster than the rents, based on information provided by agencies for real estates. So expert recommend buy to let.
The Creditex experts announced that the co-relation between both prices is important reference point for the Bulgarian market for real estate. 4,5 % in the first half of 2009 is the average current residential properties profitability, while in the last six months of 2008 it was 4,1%.
The redeemability of such investment is measure through the so called "gross rental multiplier". It shows the number of month rents, by which the investment will be returned. The lower the index is, the better the redeemability is, and the faster the investment will be returned.
The index for the first six months of 2009 is 209,4 months - a decrease from 237,3 months in the second half of 2008.
The reasons for the increasing redeemability of residential properties are the lack of adequate financing from the financial institutions, which makes the prices go down, and the rise of the interest towards renting apartments, instead of buying them.
The increase of the current residential properties profitability since the beginning of 2009 shows that the most critical moment of the real estate crisis is may be passing, and the first signs of realties market recovery and stabilization are appearing, experts form Creditex commented.
Creditex is non-bank, financial institution, specialized in business mortgage crediting, which has been on the market five year now. It is part of the registered in Holland, TBI Financial Services B.V.

02.04.2009 Beautiful Bulgaria project continues

In 2009 some 241 sites on the territory of the country will be renovated with finds from the state budget under the "Beautiful Bulgaria" project.
A total of 21 million euros will be allotted for the purpose. The money will be allocated to 160 Bulgarian municipalities, which have successfully worked out and defended their projects for the renewal and embellishment of the respective settlements.
"Beautiful Bulgaria" is one of the most successful Bulgarian socially targeted projects. Its basic purpose is to facilitate unemployment in the country by engaging jobless people in construction works with the aim of improving urban environment. The project was launched in 1997 with the assistance of the UNDP. It expanded with the years encompassing a growing number of municipalities. As of 2005 "Beautiful Bulgaria" is ruled entirely by the Ministry of Labor and Social Policy. About 1800 jobless people have so far been engaged in the project, while nearly 12 thousand Bans have changed their qualification moving in the sphere of construction works. The idea for people in this country to inhabit more beautiful and comfortable environment with renewed administrative buildings, churches, schools and reading houses has attracted a growing number of Bulgarian municipalities. In most places local administration has worked out various projects for applying for the financial support of "Beautiful Bulgaria". In late 2008 the project was included in the government plan of action for achieving economic stability in the conditions of a world financial crisis. Here is the comment of Bulgarian Prime Minister Sergei Stanishev:
"We realize that Bulgaria like all other EU countries is entering a harder period of time in view of the economic environment on an international plane. That is why we have looked for all possible ways of supporting the economy, the employment of people and preserving as far as possible their jobs. So these 241 projects are related to improving the social infrastructure, as well as the helping of small business in the tourist branch and the municipalities in general. The projects would guarantee 6400 jobs for people who would be building the respective sites all over the country and will help the re-qualification of 4 thousand Bulgarians. Thanks to this ambitious programme some 1600 permanent jobs would be provided."
I think that with the successful fulfillment of "Beautiful Bulgaria" we successfully proved that we have learned not just to walk but to firmly set foot and manage large-scale projects, said Bulgarian Minister of Labor and Social Policy Emilia Maslarova and added:
"Nearly 70% of Bulgarian municipalities are making use of this project. That shows that we have learned to manage projects. Municipalities made their best to teach people how to earn projects. We tried not only to renew culture and historic monuments in Bulgaria, our churches, reading houses etc. but also to improve our social infrastructure. So far we have renewed 100 nurseries and kindergartens. Furthermore almost 400 social homes and day care centers have been supported one way or another by the project. I think that the repair of 241 sites on the territory of 160 Bulgarian municipalities in the course of the next 12 months is an extremely ambitious task, which we are quite capable of coping with", said in conclusion Social Minister Emilia Maslarova.

11.03.2009 Bulgaria property a good long-term bet

Property in Bulgaria will continue to offer good income for investors buying in the country in 2009 it has been predicted.
According to Quest Bulgaria Property Magazine, returns will fall slightly from the average annual price increase of 30 per cent the country has been experiencing for the past five years, but will still remain a "good long-term bet" for those looking to invest.
The publication also noted that property in the country "remains incredibly cheap" and that the credit crunch has had "little effect" on what is a "stable" property market.
These two factors may further attract investors who are looking to make purchases overseas but currently have limited mortgage options available to them.
Areas such as Yablanitsa,Pleven, Stara Zagora and Rousse were recently identified by Quest as being ideal for those looking for cheap property, with the magazine

05.03.2009 Bulgaria real estate prices increased by 2.2 per cent in real terms in 2008

Bulgaria is one of a handful of countries across the globe to see its property prices rise amid the economic meltdown last year, according to the annual report by Global Property Guide, which gauges 32 property markets in the world.
Real estate prices in Bulgaria increased by a nominal 11.72 per cent, or 2.2 per cent adjusted to the annual inflation rate, ranking the country fourth after the UAE, China and Switzerland.
But the modest increase pales in comparison with figures from the previous year, when prices surged 11.7 per cent.
The downtrend held in the final months of the year, with prices falling 5.3 per cent quarter-on-quarter in October to December, according to the research.
Property prices crumbled a record 37 per cent in Latvia and more than 20 per cent in Lithuania and the US. The United Kingdom, Iceland, Ukraine and Ireland saw prices slide by more than 12 per cent year-on-year. Only Germany and Switzerland managed to curb the slowdown.
Global Property Guide is downbeat about 2009 as well, citing concerns that mortgage lending will continue to thin out and economies will slow further all over the world. Yet another bottleneck are decisions by some governments to devaluate their currencies, which increases the cost of payment of properties sold mostly in euro and US dollars.
Forecasts that the global economy is headed for a 60-year low at 0.5 per cent in 2009 are another nail in the property market’s coffin, according to the analysts.

24.02.2009 Double tourists

Double tourists in Belogradchik expected this year compared to last
This was announced at a meeting of the Civil Council of the Municipality - Mayor Emil Tsankov. Estimates are that this year in Belogradchik rocks will be visited by about 200 000 people, which is twice more than in the past tourist season.
The National campaign for the nomination of Belogradchik rocks for a new seven natural wonders of the world will contribute to the increased flow of tourists in the municipality.
According to Tsankov , this requires urgent construction of new parking lots in the city.
More than 15 national media reflected the nomination of Belogradchik rocks, which are now first in the category "Caves, rock formations and valleys.
Until now for the natural phenomenon have voted more than 3.5 million people in the country and Australia, New Zealand, South Africa, USA, Canada, China, Russia, Ukraine, Hungary and others.
In the area of the village Rabisha, near to cave "Magura" will begin construction of three new hotel and holiday village this year -specified by the municipality.

18.02.2009 hydrothermal springs on Mars

American astronomers described formations on the surface of Mars that may have existed in a hot springs, announced MSNBC.
In the hydrothermal springs on Earth living organisms, which according the scientists are the closest relatives of the first organisms on our planet.
The existence of such springs on Mars is important for the opportunity to be discovered alien life.
On Mars there are many signs showing that the planet once was warmer and more humid. Opens at the end of the Arabia Terra region were taken from the space apparatus "rikanisans orbitar Mars”.
They like many of the hot springs on Earth, "said author of the study of cosmic Carlton Allen from the space Center “Johnson”.
The form of hills and canals that run from them look like of the earth. They are in a deep crater with steep slope and may be fed by water sources below the surface of Mars.
Scientists are not sure of the origin of the formations, neither what is their, because there is no data.
On the Earth, the areas around hot springs are with a special mineral composition. If there are such on Mars, it will confirm the discovery.
"Mars rikanisans orbitar” has a tool that can study the composition, but it prevents the fat layer of dust.
Hydrothermal formations appear to be quite rare on Mars, because Alan and his colleagues have reviewed thousands of pictures and found no others.

18.02.2009 The best time to invest in cheap Bulgarian village house

Now is the best time to invest in village properties and apartments because the prices slump to 20%.
Representatives of real estate companies are united around the idea that now is the best time to buy homes if buyers have secure income.
They reasoned that this year the supply will continue to be more than demand, which will allow customers to find the price appropriate for their locations and quality of housing.
According to Executive Director of the Loan Center, Tihomir Toshev until the end of the year, interest on mortgage loans will retain current levels of 8 - 10 per cent.
Reduction can be only if the real estate market is alive, Toshev added, without specifying when that might happen.
Toshev said that this month two banks already offer better terms on their mortgage loans.
According to Executive Director of “Elta Consult "Valeri Leviev in the second half of this year is expected the real estate market to revive, because by then it is likely parent banks to resume credit to the sector.

28.01.2009 Real estate in Bulgaria has decreased in price

Real estate in Bulgaria has decreased in price in the fourth quarter of 2008 compared to the third quarter, data by the National Statistics Institute published today shows.
The index of market prices of real estate in Bulgaria for the fourth quarter of 2008 compared to the third quarter of 2008 is 95.9%.The index of market prices of real estate for 2008 compared to 2007 is 124.9%, i.e. real estate in Bulgaria has increased in price on average by one fourth in the past year.
In the fourth quarter of 2008 compared to the third quarter a decrease is registered in the prices in 23 municipal cities, as the most significant is in Veliko Tarnovo - by 11.7%, Pleven - 11.6%, Targovishte - by 11.2%, Pernik - 10.3% and others.
An increase of prices has been reported in the cities: Kyustendil - by 1.6%, Silistra - by 2,5%, Vratza - by 3.2% and Montana - by 3.7%.
The average price of real estate in the capital is 2373.83 levs/square meter, followed by Varna - 2101.17 levs/square meter and Burgas - 1791.50 levs/square meter.
In the period from October to December, real estate in Varna has increased on average by 1.3%, in Burgas it has increased in price by 2.1%, in Plovdiv it has dropped in price by 2.1%, in Sofia real estate is down by 0.7% compared to the third quarter of the year.

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