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

05.11.2007 Bulgarian cities 'good bets' for investors

Bulgaria's hugest cities, Sofia and Varna, offer the best opportunities for short- and medium-term investors, the web site HoldiayLettings.co.uk announced. There will be a "shift" in vogue away from the seasides and ski resorts and more toward the cities, with most folks choosing to buy off-plan say consultants from Property Secrets, as quoted by HolidayLettings.
Sofia is not the "most beautiful" location, in accordance with Simon Tweddle from Property Secrets, but it has the advantage of mountains nearby to the south. Tweddle told of Bulgaia's market growth: "It's partly because you've had so many foreign investors over there in the last few years that finance is actually probably a little bit more advanced than in neighbouring countries; it's probably the most advanced in that area."

03.11.2007 Investors hunt for of lands in smaller mountain villages

Accordance with the latest Oxford Business Group report, presented on October 30, Bulgarian mountain resorts attracted the most foreigner attention of any Bulgarian resorts in 2006. The Black Sea resorts such as Albena, Sunny Beach, and Golden Sands were less attractive as vacation properties since these places are considered to be profitable only in the summer.
The last few years have seen a tremendous increasing in Bansko. Projects have been springing up on an almost daily basis, irretrievably affecting the landscape. Some property experts predict that Bansko is a done deal, i.e. it will never be the lovely and attractive resort it once was.
However, this does not deter owners from offering their plots of land. Currently, there are about 400 plots on sale in the area, their prices varying from 40 to 210 euro a sq m, IMOT.BG announced. Owners of lands situated in proximity to the ski lift or the town centre did not quote a company price, but rather stipulated it as "negotiable," with a view to subsequent haggling to get the highest bid. Now plots situated in not-so-popular regions are also posted under similar quotation.
Lands situated within a kilometer or two of Bansko are at the low price range (50 to 100 euro a sq m). Ovinache and Kotechkoto regions ask more than 200 euro/sq m. They are think over to be the most expensive in the area.

31.10.2007 Greek-Bulgarian company to build holiday complex close to Blagoevgrad

Greek-Bulgarian company FIA Bulgaria will build a holiday complex in Hadjidimovo municipality, near Blagoevgrad.
The complex will have a footprint of 56 000 sq m and will comprises of hotels and villas. It will also embrace a medical centre, parks, parking places and a church.
FIA Bulgaria would invest 15 million leva in the project, Standard daily announced. The building was to begin by the end of 2008.
This would be the biggest investment in the region.
he complex construction would open 200 work places.
Hadjidimovo municipality told that investors’ interest in the municipality grew after the opening of Ilinden-Exohi border checkpoint in late 2005.

30.10.2007 Benchmark Property Fund struck final deals for the sale of five stores in Plovdiv retail centre

Currently, Benchmark’s shares are traded from 2 to 2.10 leva.Benchmark Property Fund sold five of the eight shops located in Plovdiv’s commercial centre, with final agreement signed on October 23. The total amount of the transaction came to 5 543 880 euro without VAT.
The await dividend, calculated on the basis of the already realised sales, is 0.23 leva. The REIT has already negotiated the terms of previous contracts for the remaining three retail units, and the final sale is estimated to be completed by the end of the year. After all eight stores are sold, the dividend, which will be received at the beginning of next year, will be 0.38 leva.
The retail centre was acquired for 3 250 000 euro in 2005. Currently, Benchmark’s parts are traded from 2 to 2.10 leva. The company's portfolio embraces office buildings on Sofia's Rakovski and Tsarigradsko Chausse boulevards, a 214-apartment complex in Borovets, and a hotel complex in Kyustendil

29.10.2007 Hotels to be turned into business centres in Sofia

Some of Sofia’s well-known hotels were to be soon convert into commercial and office buildings, investors told, as quoted by Dnevnik daily on October 29.
Grandhotel Bulgaria, in the centre of Sofia, would change its function, announced Emil Vassilev, representative of BT Development Services, one of the companies that succeed former state-owned Balkantourist. Meanwhile, another hotel in downtown Sofia, Serdica, would also be turned into a multi-functional building. Other old-time hotel buildings in the city were to come after the example soon, after failing to withstand the competition from newly built luxury hotels.
The four-star Grandhotel Bulgaria was one of the oldest hotels in the centre of Sofia. In the past few months it had not been operating at full capacity and a part of it was gone through repair. Due to increasing competition from new hotels, the owners had settled to change the building’s purpose, said Dessislava Kinova, marketing manager of BT Development Services, as quoted by Dnevnik.
The investment fund Equest, which owned the Serdica hotel, had a such reason for a rearrangement. After carefully researching the market, Equest decided to close the hotel and turn its construction into a business centre with offices and retail stores.
The reconstruction of Grandhotel Bulgaria was to be completed by 2010. The planned investment was 80 million leva, for which the company was gave a First Class Investment Certificate on October 26, Dnevnik announced. The certificate entitles the project to infrastructure funding from local and state government.

27.10.2007 Spanish FCC to construct the infrastructure the second bridge on the Danube

FCC Construccion of Spain would build the infrastructure adjatens the Vidin-Kalafat bridge under an agreement signed between representatives from the transport ministry and the developer, Investor.bg announced on October 26.
Under the terms of the 62.6 million euro deal, FCC Construccion will construct a 15 km railway line, the electrical and lighting system, an international cargo railway station, the reorganization of a railway station, four two-level transport links and eight bridges.
The Spanish developer is anticipated to finalise works through 2010.
Also on October 26, the Transport Ministry signed a deal with a tie-up led by High-Point Rendel of the UK for oversight of building works on the adjoining infrastructure.
The value of the contract is 2.7 million euros and the contractual term is 37 months. The contract foresees on-site oversight to cover full compliance with the construction specifications, services related to checking and testing, certification of interim and final paying, confirmation of interim tests, among others.
Several of the subcontractors on both consents would be Bulgarian companies, Transport Ministry officials announced Investor.bg.
Bridge building works both in Bulgaria and Romania are due to start in early spring next year and to be completed by the end of 2010. Both countries tipped FCC as contractor.

26.10.2007 175 million leva invested in spa hotels over the last few years

Between 150 and 175 million leva have been poured into spa and wellness developments in Bulgaria over the last three years, authority reported at a news conference held in Plovdiv. The resources have been invested into 70 four- and five-star hotels situated primarily in regions with mineral springs or seaside locations.
Such location are the most viable alternative for completing hotel occupancy all year round, Stanimir Stankov, chairman of National Association on Spa and Wellness Tourism argued. He cited the fact that such developments enjoy an yearly flow of 128 000 tourists, whose average stay is about three days. Although analysts at the conference did not announce any statistics on average spending of these tourists, all practicipators agreed that the visitors are affluent individuals enjoying high social status and inclined to invest lavish amounts into their health and fitness. Eighty-five per cent of the tourists in this sector are Bulgarians, and the other fifteen per cent are Russian-speaking tourists.

22.10.2007 New golf complex project in Bulgaria starts

Investors are expectationing to attract some of the 5 million golf players registered in Europe. Europeans spend about 2 billion euro on golf tourism every year.Black Sea Golf & Country club will be constructed near the town of Kableshkovo, Pomorie Municipality. It will cover and area of 2 000 000 sq m. Investor in the project is Kabland Ltd - a joint venture between Pomorie Municipality and NGB Consulting. Investment in the golf complex is awaited to reach 200 million euro.
Black Sea Golf&Country Club will embrace a high-class golf course, golf academy, luxury hotel, sport and enetrtainment facilities. The golf complex construction will create 800 new permanent jobs.
Investors are hoping to draw some of the 5 million golf players registered in Europe. Europeans spend about 2 billion euro on golf tourism every year.
Some of the depositor in the project are David Newmman, Thomas Gallaghar and Nicholas Gallagher. By the present moment, the three of them manage investments in Europe at the total price of over 1 billion euro.

19.10.2007 Off-plan retail unitys offered at more than 1110 euro/sq m in Plovdiv

Average offer prices of retail developments under construction in Plovdiv soared above 1110 euro/sq m, given that they have increased by as much as 48 per cent since April alone, www.imot.bg statistics show.
The inexpensivest shop in the city, with an area of 37 sq m situated in Vustanicheski borough, sells at 865 euro a sq m. The costliest retail unit, situated in the centre, commands a bid price of 1514 euro/sq m, Monitor daily announced.
Among the regional main cities (eleminating those at the seaside), Plovdiv is the one with the greatest number of shops under erection offered for sale. Veliko Turnovo has only nine shops which are offered off-plan. The most expensive one on Bulgaria asks 500 euro/sq m, and the cheapest unit situated in the centre) is offered at 850 euro/sq m. The average bid prices of retail units in Ruse come up to 1000 euro/sq m, but they have been practically stagnant since April this year. There are only six shops on selling; the unexpensivest one offers at 817 euro/sq m and the most expensive one sells at 1560 euro.
The down below are more statistics on off-plan sale offers for shops in the main Bulgarian cities.

18.10.2007 Forty million euro to be invested in a residential composite near Plovdiv

The company's second project phase embraces erection of a five-star hotel on the premises of the 9th kilometre motel. A residential compound and a five-star hotel amounting to 40 million euro will be erected at the Plovdiv highway exit.
The developer's first phase of the project, which is at a more advanced stage, implicate construction of public and residential buildings on a 72-hectare plot. The draught name of this phase is 4th kilometre - named after the highway exit toward Pazardjik, where the position is located.
The public constructions will have a gross actual area of 36 000 sq m and will house bank and insurance firm offices, a post office, and a sports halls. The residential unitys will have a gross actual area of 57 000 sq m. The project has a detailed architectural plan, main parameters have been pinpointed, and building will start at the beginning of 2008.
The company's second project phase embraces erection of a five-star hotel on the premises of the 9th kilometre motel. The construction will not start before 2009-2010.

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