Real Estate News

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.

24.04.2008 Sofia's Printing House To Become A Business Complex

Bulgarian real estate investment company - 'Bulgarian Land Development', in partnership with 'Northridge Capital' Limited - London, announced the purchase of 5 out of the 8 buildings, part of of the former state-owned 'Dimitar Blagoev'Printing House. The total area acquired by the joint venture is estimated at 29 000 sq.m
The industrial complex is located along the Tsarigradsko Shose in Sofia and was owned by the German media group 'Westdeutsche Allgemeine Zeitung'. 'Newspaper Group Bulgaria', publisher of the most popular newspapers in Bulgaria - '24 Hours' and 'Trud'.
The total cost of the deal are estimated at 50 million euro, while the whole project has been valued at 70 million euro.
The investors intend to reconstruct the industrial buildings and turn them into a first-class office & business complex. Office space is expected to be 23 500 sq.m and in addition, a 3 500 sq.m will be available for trade centre. The complex will also have a total of 241 parking places, 183 of which underground.
BLD and Northridge Capital Ltd. have already been granted a bank loan, which will cover 75 % of the project expenditures. The rest of the funds will be provided by the joint venture. Each company is to contribute 6,5 million euro to the development.
Reconstruction works are expected to finish by the end of September 2010.

23.04.2008 Construction Works In Sunny Beach To Stop As Of May 1

Hotel owners and managers from Sunny beach has demanded the construction works in the complex to be banned as of May 1. The first tourists will arrive on May 2 and therefore a relaxed, calm and comfortable atmosphere must be provided. All digging machinery, heavy-freight trucks and any building garbage must be taken out of the resort by the end of April, claimed hospitality representatives.
The request for a ban was submitted at the municipal administration to the office of Nessebar mayor Nikolai Dimitrov.
Furthermore, today the airport management must announce how tourists will be transported to the Sunny beach resort.
In the meantime, Bourgas Police Department intends to send additional police officers for the summer season in order to ensure the safety in the area.
The problem with illegal temporary constructions in Sunny beach, however is still a major issue. According to the Association of Owners in Sunny beach, over 80% of these buildings do not have permissions. The rest, on the other hand, may have the necessary legal permissions, but have exceeded their limit.Being allowed to build a 20 sq.m pavilions, they construct on 200 sq.m instead.
Hotel and restaurant owners are helpless in the fight with such competitors. They also reminded that it is a state's job to protect investors in such cases. Since the state's administration issues all the building permissions and demolishing orders, they should also be in charge for keeping track of possible violations.

22.04.2008 More Japanese Tourists and Investments in Bulgaria

Bulgaria and Japan to develop more sohpisticated economical and cultural relationships. Such hopes were expressed on a meeting attended by Japanese ambassador Tsineharu Takeda and Varna's deputy mayors Venelin Zhechev and Anton Zhozhev.
'Our countries can be now equal partners', said the ambassador and also pointed that Japan has always been helpful to Bulgaria's development and economical growth.
In the context of deepening the relationships between the two countries, the number of Japanese tourists in Bulgaria is expected to increase.
Last year our country was visited by more than 15 000 tourist from Japan. There are many TV channels broadcasting commercials about Bulgaria so it can be said that the Japanese are familiar with Bulgaria as a tourist destination.
According to the ambassador, what is most attractive about Bulgaria is its history, culture and archeology.
Bulgaria has already established stable cultural relationships - i.e. the town of Kazanlak and the Rose Festival has been for a long time a symbol of such mutual co-operation.
the Japanese Bank for Development has recently agreed to grant a 238 million loan for the relocation of Varna and Bourgas arine ports. Japanese engagement in such expensive projects of public importance is a firm promise for their will for co-operation with Bulgaria.

21.04.2008 Bulgaria - The Cheapest Tourist Destination

Bulgaria is the cheapest European tourist destination. That was announced by the British 'Post Office' company, quoted by the 'Daily Mail' and 'Indipendent'.
Thailand, South Africa and Egypt, however, are far cheaper than the countries in the EU.
Post Office has conducted a comparative research of ten of the most purchased articles by tourists. The research included anything of everyday importance - from a bottle of coke to a souvenirs. The results showed that Thailand is the cheapest, followed by South Africa, and Egypt. In Australia, on the other hand, one will pay double for the same articles.
According to the survey, the cheapest European destination is Bulgaria, where one can buy the ten-article package for approximately 50 pounds. Bulgaria is followed by Turkey, where the packae costs a little more than 52 pounds.
According to company's last year survey, USA have been the most expensive destination. This year, however, US are the seventh cheapest among all countries included in the research. A bottle of coke is estimated at 1,60 pounds, while in France one have to pay almost 3 pounds for it.

19.04.2008 Building Ecologically

Build Green Conference will be held on April 23-24 in Romanian capital Bucharest. The conference's theme will be 'Energy Efficient and Ecological Design'. More than 250 investors, real estate consultants, high-profile officials and representatives of service and technology companies and research institutions and non-governmental organizatios are expected to attend theconference.
At the conference, participants will present new methods to construct environmentally friendly and energy efficient buildings. According to the organizors and participants, the event is expected to meet the need of new information about building ecologically and energy adequate properties. They also commented on the growing importance of introducing such methods in the environment of rising prices of real estates in South-eastern Europe. This has already been done in Western Europe, where energy-efficient builings favor not only large interest but also low-cost maintenance.
The conference will also focus on possible financing of 'green' properties, available innovations and methods in green design and planning and renewable energy for buildings. Participants will also discuss and acknowledge visitors the latest upgrades in green urban planning and construction.

18.04.2008 No Leaps For Interest Rates on Loans in Bulgaria

It is unlikely that interests rate on loans in Bulgaria will increase significantly. That was annonced by the Bulgarian National Bank (BNB) in regards to its quarterly review of the economic and banking situation in the country.
This forecats is made by considering the interest rates hike expectancy in the euro-zone as well as recent activities and progress on Bulgarian market.
BNB's experts claim that global credit crisis does not influence loans interest rates as much as it does in other countries. It is said that the main reason is that there is a strive for competition among all Bulgarian banks.
According to BNB, most lenders prefer increasing the interest rates on already existing loans. This is done in order to restrict early repayments of any loans virtually useless. Experts also say that this way interest rates will make early loan repayment useless.
Last month, several major banks agreed to increase the interest rates altogether with a range for the increase of about 0,25 - 0.5 %
Although it is believed that there will be no additional increases, some people still fear that banks can leave them with their hands tied up by allowing another increase by the end of the year.

17.04.2008 Developing Bulgaria's Agriculture

Bulgaria's development programme for rural areas will be officially launched today. That was announced by 'Agriculture' state fund representative.
As of today, all 28 regional payment agencies will accept projects on two paths - 'Establishing new farms' (with a total budget of 102 million euro) and 'Modernizing existing farms' with a budget of 1,4 billion euro.
By the end of June all paths of the programme are will to be launched. The total amount provided by the EC for rural investments is estimated at 3,24 billion euro.
The first path of the project will allow farmers to apply for funds for establishing new farms or taking over and modernizing existing ones. In this case, they have to submit business plan with detailed description of all necessary actions, investment initiatives and goals. New farmers can receive money for expanding the agricultural land, increasing the number of cattle, re-planting old crops, renovation of the existing buildings, purchasing new farming machinery, etc.
The maximum fund that can be granted by each farmer is 25 000 Euro and will be paid in two installments of 12 500 Euro.
There are several major requirements which applicants must meet in order to take part in the project. They must be registered as 'Agricultural Producers', they must be between 18 and 40 years old and must prove that they have professional expertise in agriculture. Also, they must not be approved for funding by any other paths of the programme.
The second path, 'Modernizing existing farms', grants money for improving the overall production of the farms, introducing new technologies and initiatives to comply with EU's ecological standards. It is also possible applicants to receive funds for introducing HACCP standards and Good manufacture practices (GMP).
The programme is expected to improve Bulgaria's agriculture and lead it to a new level of production. It is now hoped that there will be enough projects to subsidize so that all funds from EU be used.

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