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

12.05.2008 Bulgaria's Economical Growth To Reach Six Percent This Year

According to the forecast analisys of the Center for Economic Development, Bulgaria's economy is expected to reach a 6-percent growth in 2008. The statistics were announced on May 12th in the context of the regular quarterly report about the economical development of the country. This year's index is expected to exceed last year's growth ratio, officials from the CED told journalists.
According to the report, inflation will not be too high and in May and June even marks of deflation might occur. The ratio between this year's raise in prices of basic customer products and last year's increase will remain a double-digit figure. On the other hand, however, there are no reasons to expect a double-digit inflation for 2008. CED officials also reported that the last price increase of 2007 has just now affected the inflation ratio.
It is not certain how two of the most recent decisions made by the government are going to affect the economical situation in Bulgaria. The two-percent raise of the health insurance installments will not be enough to secure the national health care system. However, the main problem is not how much money will be provided, but how they will be sent. According to the co-chairman of the CED, the funds for heath care are not used the best way possible. The pension increase, on the other hand, has now been successfully secured by taxes collected from the business sector, but it is not sure how this will be guaranteed for next year.
In regards to the budget surplus for the first three months of 2008, CED expert pointed that the government showed once again an example for bad financial planning.

10.05.2008 Varna New Stadium & Sport Complex

An investment amount of 80 million Euro is expected for the new 'Varna' stadium. That was announced by the contracting company and 'Sports Complex Varna', main investor of the project.
Most of the shares of the investing company belong to 'Himimport' while 35% are owned by Varna Municipality. The contractors intend to hire foreign specialists and import materials and supply in order to complete the development. The estimated final costs are even to expected to exceed the first calculations.
Construction works should start this autumn but only a proximate deadline for full completion is being planned for 2011. It is expected to take about 26 months and another year is considered for relocating the road networks and solving all infrastructure issues.
The stadium is still at technical project stage and the investors are currently negotiating with land owners in order to purchase the neighboring plots. They have already acquired two of the properties they desired and hope to close the deals for the rest soon.

09.05.2008 Three New Golf Courses In Sozopol

Sozopol will have three new golf courses according to the latest changes in the town's architectural plan. That was announced by Sozopol's mayor Panayot Reizi. Each plot will have a total area of approximately 1 000 decares and the municipality will keep its ownership rights for most of the land.
In relation to the golf developments an airport for small airplanes will be constructed between the villages of Ravna Gora and Izvor. The port's landing track will be 1800 m long and will be constructed over an old non-functioning agricultural airport.
The municipal administration also intends to improve the local infrastructure. It was promised that all issues regarding the water supply, the main drainage system and road networks to be solved completely in two years.
According to Sozopol's mayor, these initiatives and developments will attract a different type of tourists into the area. The municipal administration hopes to co-operate with large and serious investors who will spare no efforts and money for completing the new developments.
The new sport complexes are also expected to include private land plots in order to meet investors' demands. Constructing a big entertainment park is also considered near the road between Sozopol and Bourgas, close to the 'Gradina' camping site.

08.05.2008 Greek Customers On Bulgarian Property Market

For the last two years Greece has indicated signifficant increase in its position in Bulgaria's real estate market. Greek investors and private individuals have practically 'invaded' several Balkan markets, announced Greek business newspaper Imerisia.
Numerous Greek construction companies have been building residential, office and retail complexes all across Albania, Bulgaria, Croatia, Romania and Macedonia. Private individuals, on the other hand, are still purchasing houses and apartments both for recreation or subletting.
Greek buyers are mostly interested in coastal properties around Varna and Bourgas, as well as the ski developments in Bansko. As real estate investors, Greek customers find prices in Bulgaria affordable, compared to those in Greece and other Balkan countries.

07.05.2008 Next Varna Mall - The Cherno More Park

The deadline for completion of another Varna mall was annonced. Cherno More Park is officially expected to be completed in 2010. Once completed, the 150 million euro development will be the largest retail centre in Varna. It will include 54 000 sq.m commercial space divided into 220 first-class shop areas.
Construction works of Cherno More Park were due to start in autumn this year. The retail centre will be located in an area which formerly housed diesel engine maker Vamo.

03.05.2008 New Sofia Mall To Be Constructed

Austrian realty investment company Meinl European Land and Dutch 'Multi Development' (subsidiary of 'Multi Corporation') are going to initiate this year their first mutual estate project. They are going to construct a new 'Forum Sofia' Mall on the Sofia ringroad near the Business park. Constructon start date has not been said, but it is expected to start in Autumn this year. Completion is due in two years time.
The complex will include a hypermarket, a 'do-it-yourself' outlet and many other stores with total area of 35 000 sq.m, several restaurants and cinema theatres. 'Forum Sofia' will be constructed on a 180 000 sq.m landplot and the total built-up area will be more than 85 000 sq.m with 3800 parking spots.
Dutch-based 'Multi Corporation' has a longstanding presence in 20 European countries, as well as in Romania, Greece, Hungary and Turkey. Specialised in commercial estates and mainly in shopping centres and malls, the company has been awarded by the International Council of Shopping Centres for its developments all across Europe.

30.04.2008 One More Country On The Gas Pipeline Project

Greece has signed today in agreement for participating in the gas-pipeline project 'Southern Stream'.
After the Greek officials annonced last week their intentions to join the project, the Prime Minister Kostas Karamanlis, it is now all official. Russian Enegrgy Minister Viktor Hristenko and the Greek Minister of Development signed earlier today in Moscow Kremlin the agreement which will allow the pipeline to be constructed and used on the territory of Greece.
The pipeline project is a joint initiative of the Russian 'Gasprom' and Italian 'Eni'. The cost is estimated at 10 billion Euro and is expected to operate as of 2013. The whole project requires 900 km of pipes to be installed on the Black sea bed between Bulgaria and Russia. On Bulgarian territory, the route will probably divide into two directions - one to the north providing gas to Romania, Hungary, Austria and Slovenia, and another to the south for Greece and Italy.
The project is of vital importance to Bulgaria's economy as it will serve as a junction point of the pipeline route.

29.04.2008 Plovdiv Properties Have Highest Return Rates

Investing in real estates in Plovdiv has highest return rate compared to other big cities in Bulgaria. According to a realty survey for the last one and a half year covering all big cities in Bulgaria, the return rate for new residential properties or office premises is estimated at 10,5% average.
Plovdiv beats Sofia's income ratio with only 2,5 points, while compared to Varna the difference is 4 points.
The main reasons for this are said to be the presence of new international companies which are currently entering the Plovdiv market and therefore looking for first-class premises, the low selling prices, compared to the relatively stable rents. The city has also a working economical environment, which is of vital importance to the property market.
According to real estate consultants, the average office rent in Plovdiv is around 8 Euro per sq.m, which indicates a 10% growth since the beginnng of the year. Selling prices are between 600 - 2000 Euro per sq.m, depending on the location.
Although new real estates projects are expected to emerge in Plovdiv, prices of residential properties are not likely to go up, since the average income per capita in Plovdiv has not raised signifficantly. Price increase is expected only for luxury residences and properties in the heart of the city.

26.04.2008 Sofia - Belgrad Highway Construction To Be Top Priority

Highway connection between Belgrad and Sofia should be top priority in regards to the economc relations between Bulgaria and Serbia. Bulgaria's president George Parvanov said that at the Balkan economic assembly in Sofia.
The route is part of the European corridor No.10, which is financed by the EU. Bulgarian state officials promised to insist on a fund increase by the European Commission. Both countries, however, will still need to provide additional 250 million euro for the construction of the highway. Parvanov reminded that this is not difficult and can be done quickly by both governments.
There are many Bulgarian investors in Serbia, mainly occupied in production outlets. Increasing interest in Serbia's energy sector has also been registered recently. Business representatives have also asked for solving the visa regulations and making the procedures quicker and easier.
Sophisticated visa procedures caused a decrease in the number of Serbian tourists last summer, after Bulgaria became a member of the EU and started applying strict requirements for non-EU Balkan citizens.

25.04.2008 Price Record For A Commercial Property In Veliko Tarnovo

Commercial estates in Veliko Tarnovo reached record price - 6000 Euro per sq.m. That was annonced by the local newspaper 'Yantra Today'. The deal was for a shop with a total cost of the purchase of almost 900 000 Euro.
The price is a record for Veliko Tarnovo property market and still amazes real estate agents. This figure can be compared only to prices in Sofia's 'Lozenets' and the centres of Varna and Bourgas.
The main reason for the extreme price is said to be the lack of business areas. Veliko Tarnovo has limited options for commercial properties since there is only one main shopping street. That is way most investors prefer buying shops in the residential complexes rather than esattes located on Gabrovski street ad the Bulgaria boulevard.
Demand is signifficantly high, but the supply of office and commercial realty is very low, as owners make a good profit from letting their properties for rent. Brokers admit that it is virtually impossible to find any business space on the main street of Veliko Tarnovo.

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