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

17.12.2007 MBL: Third quarter of 2007 sees record delivery of newly built office spaces

According to research from MBL, the number of class A and B offices has continued to grow, amounting to 735 650 sq m as of the end of third quarter 2007. The property firm found that about 21.5 per cent of office space falls to single-tenant owner-occupied buildings and 15.5 per cent is in buildings owned by a condominium.
The growth during Q3 2007 was 8.5 per cent, registering a nominal increase of 57 690 sq m, almost equalling the aggregate supply of the first half of 2007.
520 000 sq m of office space is currently under construction in Sofia, 62 per cent of which is concentrated in four suburban regions: Bulgaria Blvd, Tsarigradsko Chaussee Blvd, the Southeastern region and Sofia Airport. As a result, some analysts predict that these areas could experience a heavy oversupply in the medium term. Building in central situation, by contrast, remains subdued due to the lack of appropriate vacant plots.

15.12.2007 Infrastructure woes in Bansko receive a boost

In addition to donating the land for the season, LS Property has prepared the parking lot at its own expense to support tourism in Bansko.
Over 200 car spaces on Pirin Street have been donated to the Bansko municipality in a response to the barrage of complaints about inadequate infrastructure - including parking.
The piece, situated next to the ice skating rink and owned by LS Property, has received a face-lift to accommodate comfortable parking for the influx of tourists.
"You helped save Bansko for the winter season," said Bansko Mayor Kravarov.
In addition to donating the land for the season, LS Property has prepared the parking lot at its own expense to support tourism in Bansko.

14.12.2007 Raiffeisenbank lends 29 million euro for the building of Mall Pleven

Raiffeisenbank (Bulgaria) EAD has reported it will extend a long-term credit of 29 million euro for the building of Mall Pleven.
Financing has been secured by a mortgage on the mall site and the future structure.
The major investor in the scheme is the Aladin company. Mall Pleven got a First Class Investment Certificate in November for the sum of 80 million leva, for planned investment in the schame.
The retail centre will have a gross actual area which spreads over 46 800 sq m. The retail area purposed for lease will be 17 800 sq m. The mall is due for completion in 2010.

13.12.2007 Bulgaria's holiday property market in 2007 driven by Russian buyers

Prices of holiday estates in Bulgaria's mountain resorts increased by 10 per cent in the period 2006 – 2007. The supply/demand ratio remained the same, Green Life Property Development research said, so ensuring a smooth development of the market during the new winter season.
However, interest in holiday real estates in Bulgaria from UK buyers has decreased by 70 per cent. This is mainly due to the mortgage crisis in the USA and Europe. The downward trend affected the world market as a whole and not only Bulgaria.
The holiday real properties market in Bulgaria has also been undermined by various stories about over-construction in resorts.

12.12.2007 Property in Bulgaria's Sveti Vlas resort to hit 3 000 euro per sq m

The Prices of front-line estates in the coastal resort of Sveti Vlas were expected to reach 3000 euro per sq m in the summer of 2007, Sveti Vlas mayor Ivan Nikolov according.
Currently, this type of real estate was offered at 2500 euro per sq m, Nikolov said as quoted by Bulgarian news agency BTA.
Second-line properties had already reached 1200 to 1300 euro per sq m.
A few front-line pieces were still vacant, Ivanov said. Two or three additional complexes could be built and most probably property prices would rise again in the 2008 tourist season, he said.
The difference between front-line holiday properties and those in Sveti Vlas’s neighbourhoods was big, with estates in the residential districts offered at 800 euro per sq m.

11.12.2007 Another mixed-use development to tower above Sofia city centre

A modern retail and office compound is under construction in Sofia’s central Rakovski Str. The cost of the investment will exceed 4 million euro, peaking at 5 million euro. The investor is Benchmark Property Fund. The design was drawn up by ProArh with leading architect Maya Yovcheva. The consultant is Expert Consult 5.
The gross actual area of the development will be 4 848 sq m.
The architectural style of the building will be modernistic in one of the latest world exterior solutions. It will have a structural glazing facade in metal and glass standing out against the background of the adjacent buildings. The site is 452 sq m – between two blind walls, afffording maximum floor area.
There will be 12 levels: two basements, one underground and nine floors, rising above the ground.

10.12.2007 Bulgarian building company Planex eyes Romanian expansion

Bulgarian construction company Planex Holding is investigation the market in neighbouring Romania with a view to cross-border expansion.
Contacts are still at the previous stage but the expansion is just a question of time, Planex manager Plamen Andreev said Dnevnik.
The company executive did not define a time-frame for the operation. The current priority for the company will be to consolidate and broaden its footing on the domestic market.
Objectives for 2008 embrace the completion of several vacation villages and a mixed-use construction with a residential component and a built-up area of 40 000 sq m in Sofia.
The most weighty project, slated for 2008, is the Viva housing compound. It will cost 30 million euro, embracing 2 million euro in land acquisition expenses.
The development comprises four residential constructions, two of which have been completed. The total built-up area will spreads over 70 000 sq m.
Another 7 million leva have been earmarked for the Kavarna City Center mixed-use office and retail location in the coastal city of Kavarna. It will be completed in 2009.

08.12.2007 Russians search for Bulgarian luxury holiday properties

Bulgarian property will keep on attracting foreigners, because prices are lower compared to other EU countries and investors expect that real estate prices will catch up with levels in other EU states at some point.
Valeri Kroushovliev, manager of Veko Estate, said in an interview with Monitor daily that Russians are currently actively seeking holiday estates in Pamporovo .
They are snapping up accommodation for personal use, unlike the British and Irish who have tended to buy into the Bulgarian market for speculative purposes. However, Kroushovliev commented that these types of buyers have been replaced by more sophisticated and discerning investors.
It remains to be seen whether their needs will be met, Kroushovliev added. He also believes that the forthcoming winter season will provide clues about future foreign investment in Pamporovo. Entrepreneurs will see whether maximum occupancy is reached in tourist developments and, if so, whether existing infrastructure is sufficient to meet demand. If ski pistes, ski lifts and gondolas cannot meet tourist needs this may alarm investors.

07.12.2007 Real estate sales in Stara Zagora stage unexpected upsurge

Stara Zagora's strategic location and good infrastructure as well as the growth of business and energy sector, rank the town among Bulgaria's five front-runners in terms of construction growth rates and real estate sale and rent prices. Estate prices in Stara Zagora recorded a boom in November. The prices have almost doubled in comparison to last year's levels.
According to Sergei Kozhin, owner of Evroimoti-Kozhin real estate agency, demand far outstrips supply. As a result of the recent remarkable demand for both old and new construction type units, price differentials between the two kinds of residential estate have almost disappeared. Flats in the most prestigious neighbourhoods sell at 700 euro a sq m. Off-plan offers start from 500-550 euro a sq m. Well-maintained pre-fabs have also recorded an increase in prices - some of them ask as much as 500 euro a sq m. Purchases are financed through loans and cash payments.
Rentals have also exhibited an interesting trend. Company headquarters, based in the vicinity of Maritsa Iztok power plant, have established rigid rules and requirements concerning luxury apartments. Owners who meet all clients' demands, including the provision of luxury furniture, are now able to conclude long-term rental agreements at prices that reach 400-500 euro a month. Retail rentals have also registered an increase. Units situated in the town's centre rent at not less than 1000 euro a sq m and enjoy healthy demand.

06.12.2007 Winslow Developments and RREEF to pioneer new residential project near Sofia

Winslow Developments and Deutsche Bank's investment vehicle, RREEF, are to set up a joint venture, Winslow Properties, in order to co-develop a new construction.
The new plan (their first was Winslow Gardens residential complex in Manastirski Livadi) is to develop a residental complex, valued at 252 million leva, in the Gradoman district of Boyana.
The site of the new complex spreads over 150 000 sq m. The number of residential units in the complex will reach 1200. The pretty area in the spa town of Bankya is close to the future Lyulin Highway. "Our main priorities are comfort, calmness and security - that's what we want to offer to residents of our complexes. The concept of this new project is to create an ecological home close to the big city," Winslow Developments' executive director, Ivan Mekushin, said.

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