West Europeans having enough resources to invest in vacation home were looking for opportunities abroad, mainly in countries like Bulgaria, Croatia and Morocco, a Newsweek article named Room With a View said.

Countries like France and Spain have traditionally been vacation property hotspots. The high demand, however, was creating good investment opportunities in new places like Bulgaria and Croatia, Newsweek reported.

Increasing number of Brits, Germans and Dutch searched for vacation property abroad. Foreigners bought as much as 80 000 to 100 000 second homes in Spain in the past year.

Nearly half of the purchases were speculative, aimed only at investment without personal use, the report said.

Low-cost air carriers have made travel across Europe easy and cheap. Such developments added to the appeal of property purchase abroad, Newsweek reported.

Less-developed regions welcomed the inflow of foreign investment, Newsweek reported. It quoted Sofia mayor Boiko Borissov as saying that Bulgarians welcomed foreign property buyers because of the financial resources they brought along.

The torrential rains of past week, unprecedented for the last 50 years, as explained by meteorologists, confronted municipalities and the state, insurers and the affected. The normal desire to help encountered the avalanche-like financial demands of the affected to cover all kinds of losses. The restricted budget of the Emergency Fund which has allocated 55 mln Bulgarian levs, half of which already spent by mid-May, further aggravates the situation.

The affected are farms, houses, yards, streets, vehicles. The verbal war between the Sofia City municipality and the concessionaire of the water and sewerage network is but an illustration of the poor interaction between the different state, muncipal and private structures in similar crisis situations, very often politically tinted. In the heat of the floods when two residential areas in Sofia were flooded and rivers went out of their beds, the Sofia Mayor (currently running for Parliament) demanded 10 mln levs for covering the losses, and the municipality accused Sofiyska Voda AD, the operator of the water and waste water services of Sofia, that the floods had been a result of the clogged sewerage system. Sofiyska Voda, in turn, said that the pipes were clogged due to the dirt in Sofia and because the rain water had dragged all kinds of debris. One way or another, the situation again set forth two basic issues on the agenda: why the authorities, the state, municipalities, people are never prepared for similar meteorological surprises and why is the share of agricultural produce insurance still modest.

The Most Affected Areas

Although the losses from the disastrous floods are still to be estimated, the Ministry of Agriculture and Forestry announced data according to which the floods had destroyed nearly 16,500 ha of agricultural crops, mainly wheat, sunflower, maize and barley, for the period May 17 to June 3. The disaster also inflicted heavy losses on the infrastructure, state, municipal and household property in the affected towns and villages. The most problematic are the areas of Rousse, Lovech, Vratsa, Montana, Stara Zagora, Sofia, Pleven, Targovishte and Shoumen. By June 7 the Rousse agriculture office had registered losses on 3,800 ha of land under crops.

Entrepreneurs from Rousse district reported huge losses inflicted also on the vineyards, with some 40 pct of the fruit fully destroyed and some 10 pct of the vine varieties.

Many farm producers from Rousse district believe that the crop of tens of hectares planted with wheat and barley, flooded by the rains, has practically been destroyed. “Before the calamity the cereals were developing very well and we expected good yields,” the chairman of an agricuture cooperative said. According to figures provided by the mayor of a municipality in the district, the calamity has inflicted over 2.0 mln levs worth of losses.

As for Shoumen district, the hail destroyed 860 ha of land under wheat, 195 ha of barley, 250 ha of maize and 920 ha of sunflower, the chief of the district agriculture and forestry directorate, engineer Miroslavov, told the Capital Weekly. Among the worst hit in the district are the villages Zlatar and Suha reka from the Veliki Preslav municipality where the floods destroyed 30 pct of the areas under wheat, 26 pct of the barley, 18 pct of the maize and 15 pct of the sunflower. Areas of some 100 ha of maize and 330 ha of sunflower, that is, some 30 pct of the crops, have been destroyed in the village of Tzani Ginchevo and in the whole municipality of Nikola Kozlevo. The non-insurance of the agricultural produce is a serious problem in Shouymen district too. According to Miroslavov, only the farmers who file applications to the Agriculture Fund for credits insure their crops, and only because this is a prerequisite for a loan.

By June 7 owners of over 1,300 ha of land in Pleven district and of more than 1,500 ha in Lovech district had submitted applications to the district Agriculture and Forestry directorates for assessment of the losses from the flood. There have been no precise estimates as yet, since information on the losses keeps coming, the deputy director of the Agriculture and Forestry directorate in Pleven Yordan Neikov told Capital Weekly. Some 9.6 ha of areas under melons and water melons have been completely destroyed by the floods. Complete assessment will be made after the water withdraws from the areas. The insurance companies - Allianz, Vitosha, Orel and Bulstrad have the biggest number of clients in Pleven and Lovech district. Allianz has reported that the company is to cover the losses for over 150 ha of insured agricultural land.

The Fund Will Have To Undertake Something

Although the final losses have not been estimated as yet, the affected municipalities have submitted 260 claims to the Commission for crisis management and emergency situations to the total amount of 19 mln levs. For the time being the commission has decided to allocate 6.6 mln levs - about one third of the needed amount. The commission will also demand material and technical assistance from Directorate 19 (environment and calamities) of the EU and from NATO. This took place after a week earlier - on June 1, the Commission for crisis management and emergency situations decided to allot other 8.7 mln levs despite the financial problems of the fund itself. Some 25.5 mln levs of the 55 mln lev budget were spent by May 4 to cover losses from other calamities from November 2004 to May 2005. The necessity of keeping 16 mln levs as a reserve forced the government to provide additional 8.0 mln levs for the fund. All that will hardly be a consolation for the affected, on a purely personal plane, taking into consideration the fact that the money from the fund is destined to urgent repairs, to cover damages inflicted on infrastructure, state and municipal property, schools, libraries, culture houses, churches, etc. Only after meeting the emergency demands can building materials be provided for affected private property, officials from the Fund administration said. So, the major problem comes to the fore, and it is about

The Insurances

The press office of Filiz Hyusmenova, minister without portfolio, responsible for crisis management and emergency situations, reminded that the Emergency Fund had never covered losses inflicted on agricultural crops and animals and would not do it now either. According to data of Hyusmenova’s establishment, only 5.0 pct of the affected immovable property has been insured. According to data from the affected districts, the cases of insurance of agricultural produce are but exceptions. Daniela Konova, chairman of the Bulgarian Insurers Association, stresses the growth of agricultural insurances this year, made mainly by big agricultural producers and farmers who have received subsidies from the Agriculture Fund. Most of the small farmers and producers have not insured the crops and animals and their losses will not be compensated.

The growth of the house property claims is but insignificant, Konstantin Velev, executive director of the Orel insurance company, says. The losses are huge but the property hasn’t been insured, he said. The major problem in his view is that the citizens rarely resort to insuring their property and in this case, the state should not cover similar losses. He also stresses the acceptable insurance prices. For 20 levs one can insure his immovable property for an insurance amount of 10,000 levs. Prices are higher concerning vehicle insurances. There are some problems concerning the municipal and state property although its insurance is obligatory. Yet, it is normal practice for this property to be insured for minimum insurance amounts and respectively, the compensation paid in the event of damages and losses is extremely insufficient, which is an additional burden for the state budget, Konstantin Velev said in conclusion.

Jain and Chris Goodall are Britons who moved to Bulgaria to publish a property magazine about… Bulgaria. Jain’s family are Hungarian, while Chris had been visiting Bulgaria since 1984. So moving east was not at all daunting but certainly set its challenges!

Jain Goodall talked to Sofia News Agency Editor-in-Chief Milena Hristova

Q: A quest after what was your decision to move to Bulgaria and publish a magazine here? Was Bulgaria the destination you originally wanted to emigrate to?

A: We originally came to Bulgaria to buy a house. Amazed at the lack of service and decent advice we returned home disappointed. Upon our return we reflected on what was happening in Bulgaria for English speaking people trying to buy property there.

An idea started to form - ten years ago we had moved to France where we had created and established a magazine to better inform and assist English speaking people considering buying property and even moving there. What was happening in Bulgaria with the lack of correct information was exactly the same as in France all those years ago. So we decided not just to buy a house in Bulgaria but also to establish an English language magazine again, called “Quest Bulgaria”, dedicated to helping all those buying and investing in Bulgaria.

Q: What were your feelings and expectations when you first arrived in Bulgaria more than a year and a half ago?

A: Moving out in winter 2004, the Bulgarian temperatures came as quite a shock - coming from south west France where it hardly ever went below zero, we weren’t quite prepared for the minus 20 that Sofia threw at us. Even though Chris had been visiting for over 20 years it had mainly been in the summer months so it came as a surprise that the +30 degrees he was used had suddenly dropped to -20 degrees! We were definitely excited though and really looking forward to settling in.

We were also extremely happy to be living in a capital city, we lived in a small market town in France so were absolutely astounded by the number of restaurants, cafes and bars that Sofia had to offer - everything right there on our doorstep, and most of it available 24 hours a day.

Q: For you as a foreigner, which are the bonuses of living and doing business in Bulgaria? Looking back have there been more ups than downs?

From D Visas, through Lichna Karte, importing a vehicle, to learning the language (alphabet first!) and setting up a company, VAT registration … we went through it all ourselves.

Definitely more ups than downs though! We found the Bulgarian people extremely supportive of us and our business venture and they made all efforts to assist us where they could.

This also meant that for ourselves, everything went incredibly smoothly with sorting out most things as we had already made the perfect contacts through establishing the magazine for any information we then required personally!

Plus of course, as for many foreigners coming here from western europe, the cost of living is incredibly good - which is a huge appeal.

Q: Do you have any tips you would pass on to other foreigners considering a permanent move?

Learn the Cyrillic alphabet as soon as you can - what a difference it makes when you can read signs and a menu! We now buy Bulgarian newspapers and can read most of the headlines, plus work out the TV listings!

Definitely keep an open mind and try not to make comparisons between Bulgaria and your home country. Things are different here and you have to be prepared to adapt. That’s the charm of living in a foreign country; to experience a different culture and atmosphere.

If you are unsure about anything (inheritance, company setup, visas, etc) then seek professional advice - there is a great deal of incorrect and out of date information available on the internet which is misleading a great many people - paying for an hour’s time of a professional could actually save thousands in the long run.

Q: Residential prices have pushed Bulgaria squarely into the real estate spotlight. How long do you expect it to enjoy this popularity?

A: It’s a very difficult question. In Spain and France it went on for many years. We think the only concern here in Bulgaria is that the market is moving much more quickly and prices are increasing dramatically, not in such a smooth progression as they have done in the western European countries. The worry would be that the prices are going up too fast and the market cannot support this long-term. If the market calms, then we see no reason for this not to continue for years to come.

Q: Why did Bulgaria turn into a hot place for vacation homes and, to a lesser extent, for investment?

A: It’s cheap for holiday homes. For investment Bulgaria is well located as a country, sitting at a good axis.

Q: Which are the drawbacks that foreigners buying property here usually overlook?

A: Most foreigners do not spend enough time getting to know the different areas of Bulgaria. They often see something they like on the Internet and just visit that one location. Sometimes they are upset afterwards because they rushed it and find that the village down the road is nicer than where they have bought! Take your time is the best advice. It’s so much better to discover Bulgaria first and then choose the property, rather than the other way round.

Among the legal issues concerning the risks involved in buying property here are under-declaring the real value of the property on the deeds is one of the main issues; which of course can lead in the longer term to a high capital gains tax bill for foreigners. Visas, residency permits, setting up a company, inheritance laws, taxation laws, accountancy laws, importing a vehicle, managing a property from a distance…. are all extremely important and are always asked about.

Q: What are your tips for those who want to go for a safe, hassle-free and profitable property purchase in Bulgaria?

A: Do your research first from as many independent sources as you can find. Don’t trust all that you read on the Internet. Get your own lawyer rather than use the one recommended to you by the estate agent, that way you know they are acting in your interests. On the whole though, most property purchases are hassle free here; it’s the same as with most things, you tend to hear the bad news shouted loudly from a few and the majority who have had no problems say little.

There is new evidence today of Bulgaria’s continued progress as it cements its reputation as a European property hotspot.

Bulgaria is set to join the EU early next year and it is a prospect that has hugely enhanced the country’s status as a strong option for property investment. Bansko, Borovets and Pamporovo have proved particularly popular with investors, largely as the ski properties are still exceptionally cheap despite huge levels of investment in recent years.

There is also a chance that Bulgaria will host the 2014 Winter Olympics, which has again stirred interest from investors across the world.

But EU accession is of course the real attraction for many, with experts suggesting that it will bring about huge house price growth as links with Europe are notably enhanced.

There is already evidence of these links being improved, particularly in the world of transportation. The Sofia News Agency reports that new flights have been launched from Sofia to Alicante, for instance, operating every Wednesday. A new flight path has also opened between the Black Sea city of Varna and Italy’s Milan, while there are now also flights going between Burgas and Dublin as well as Burgas and Madrid.

Links with Holland have also boosted Bulgaria’s relations with its European neighbours and there is a sense that it is now picking up momentum ahead of EU accession.

Interestingly, the Bulgarian News Network (bnn) has reported today that Bulgaria and Romania are set to adopt the common European currency before Hungary, which has been a member of the EU since 2004.

Adoption of the euro could again prove to be a key development in Bulgaria’s emergence as a genuine rival to the likes of Spain and France in terms of overseas property investment, with buyers less concerned about currency complications.

Interest in Bulgarian property from buyers in the UK seems to have been particularly strong over the last couple of years. As reported by the Western Mail, Bulgaria is now being seen as a top destination for beach, ski and golf holidays, and this combination is undoubtedly making it a favourite among holidaymakers from the UK.

David Wingar, founder of Future Asset Management, told the publication that we are on the verge of “a second property revolution in the UK”, with 750,000 people likely to buy a second home within the next decade.

“World stock markets are volatile and nervous investors will look to other sources, as happened in 2001,” he added.

With Bulgaria expecting impressive growth during this period, thanks largely to EU accession, it may well be that it is in an ideal position to take advantage of this “revolution”.

The profile of property investment in Bulgaria is perhaps set for a huge boost in the coming years and many investors have already gambled on this by purchasing in the country. A closer relationship with the EU will undoubtedly add impetus to prospective growth and there are clear signs that this is already being achieved.

Bulgaria has strengthened its position as the overseas property hotspot that will provide investors with the greatest return on investment.

Investors who buy property in the eastern European country can now expect returns of 137 per cent on cash invested, compared with 116 per cent in the first quarter of the year.

The figures from property investment firm Assetz also highlight Greece and Poland as interesting propositions for overseas property investors, but warn investors off buying property in the USA.

But it is Bulgaria that offers the greatest returns, with mortgage rates falling in the spring from seven per cent to 5.95 per cent, and deposits required falling from 30 per cent to 25 per cent.

The country has a growing tourism industry both in summer and winter following the introduction of low-cost airlines and the growth of ski resorts such as Bansko.

A stable resale market has given it greater staying power as an investment destination, while it will also be boosted by EU membership, which is expected in 2007.

Cyprus is in second place for return on investment, followed by France in third, but it is Poland in sixth place that is worthy of note.

The property market in Poland, which became an EU member in 2004, has performed well since the turn of the year, with prices rising between 20 per cent and 30 per cent so far.

Property prices in Warsaw are among the lowest in Europe, so there is plenty of potential for investors to make an excellent return on their investment.

In Greece, there has been something of a turnaround during the last 12 months. House price rises of 7.9 per cent have increased cash returns from two per cent to 25 per cent.

“The choice of overseas destinations available to investors is growing increasingly wide, driven by EU expansion, new low-cost flight routes and the prospect of hefty returns particularly in emerging markets such as Bulgaria and Poland,” said Stuart Law, managing director of Assetz.

“More traditional destinations such as France and Cyprus are still stacking up very well against the competition and hold huge appeal for investors who are attracted by a stable growth pattern, uncomplicated buying process and guaranteed resale market.”

However, overseas property investors considering the United States should beware that the fall in value of the US dollar against the pound means that for many, the 12 per cent rise in US house prices over the last year will have been wiped out.

In Spain, house price rises of 12.8 per cent mean the country is growing slower than in the previous two years, but with rental yields at eight per cent, the total return on investment is still a healthy 43 per cent.

By comparison, UK house prices are now averaging 6.8 per cent growth, resulting in a 44 per cent return on cash invested.

New research shows that Bulgaria is still the best place to buy an overseas property to invest in.

According to property investment specialists Assetz, the central European state tops the list of places to buy in thanks to cheaper borrowing and a higher loan-to-value ratio boosting the amount of money that can be made.

In the second quarter of 2006 Bulgaria offered investors a 137 per cent annual return on cash invested, up from 116 per cent in March.

“The choice of overseas destinations available to investors is growing increasingly wide, driven by EU expansion, new low cost flight routes and the prospect of hefty returns particularly in emerging markets such as Bulgaria and Poland,” said Assetz managing director Stuart Law.

While Bulgaria continues to top the list, Assetz also highlights Greece as somewhere property investors should keep an eye on.

In the last 12 months house prices in the southern European country have increased by almost eight per cent, meaning returns on cash invested have rocketed from two per cent to 25 per cent, Assetz calculates.

Poland also looks a good investment opportunity, with prices rising between 20 and 30 per cent in the first three months of 2006, Assetz reports. Additionally, property in Warsaw remains among the cheapest in Europe.

House prices are also rising in Spain, with property values up 12.8 per cent in the last year. Strong demand from overseas investors as well as Spanish locals means gross rental yields of eight per cent and total returns on investment of 43 per cent are still available.

“More traditional destinations such as France and Cyprus are still stacking up very well against the competition and hold huge appeal for investors who are attracted by a stable growth pattern, uncomplicated buying process and guaranteed resale market,” said Mr Law.

“However investors keeping an eye on home turf will be interested to know that the six major UK house price indices are now averaging 6.8 per cent growth, resulting in a healthy 44 per cent return on cash invested.”

However, investors have been warned off buying property in the US.

The changes in the value of the dollar mean UK investors have effectively lost seven per cent of their investment, wiping out any gain in house prices.

BULGARIA’S ‘WESTWARD MOVE’ ATTRACTS PROPERTY SEEKERS

An article named The Bulgarian Property Renaissance, published on 999 Today website presents Bulgaria as an increasingly appealing destination for Western European property seekers.

Previously known as communist country, Bulgaria is now making moves westward with its NATO membership and expected EU entry in the beginning of 2007, 999 Today reported.

This ‘opening’ to the Western world enabled property investors discover the potential of the country. 999 Today reported Bulgaria has rich cultural heritage, good climate and beautiful nature. The relatively low costs of living further the appeal of the country, the website said.

These developments influence the decision of many Western property seekers. Increasing number of British decide to purchase a first home abroad in Bulgaria, the website reported.

Bulgarian coastal resorts have always attracted investor interest but increasing number of West European property seekers are now turning to the country’s winter resorts.

The capital of Sofia also offers good opportunities with modern new suburbs located close to Vitosha Mountain, 999 Today reported.

Bansko heading Bulgaria’s Olympic bid
With the summer months upon us, it is inevitable that the majority of property investors are currently fixated with the Black Sea resorts in Bulgaria.

Sunny Beach is perhaps the most obvious example and with 1,700 hours of sunshine between May and September this should come as no surprise. The area also boasts an average daily temperature in the region of 27 degrees centigrade and it is definitely the most vibrant holiday resort on Bulgaria’s Black Sea coast.

It is an area that is often compared to some of Spain’s more famous coasts and with prices still very reasonable it has emerged as a favourite choice among those interested in property investment opportunities.

But investors with a more long-term outlook will undoubtedly be keeping one eye on Bansko, which is going to be the driving force behind Bulgaria’s bid to capture the Winter Olympics in 2014.

The area attracts tourists in the summer and the winter and so rental potential is strong throughout the year. The ski season is when Bansko really comes alive, however, with outstanding snow conditions and some of Europe’s most promising slopes.

Located just two hours from Sofia Airport, Bansko has been stealing tourists from more familiar resorts in France and there is no evidence of this trend abating as investors continue to plough their money into hotels, chalets and amenities for the tourists flocking there each year.

Property prices have already increased at pace in Bansko in the last few years but the prospect of bringing the Olympics to the country is likely to boost prospects for capital growth still further.

A report in the Sofia Echo has drawn attention to some of Bulgaria’s strongest points when it comes to the Olympics bid and all are encouraging irrespective of whether it is ultimately successful.

One observation of particular note is that Bansko and Borovetz are both ski centres that now have international recognition. Both have emerged as popular tourist destinations in the last few years and both have seen strong levels of investment in accommodation and infrastructure.

The report also notes that Bulgaria’s government has been modernising the transport infrastructure in the country. Once again, the completion of this project is not dependent on Bulgaria hosting the Olympics, which bodes well for those hoping to invest in a property at this early stage.

With Bulgaria also set to join the European Union next year, there is certainly a lot to look forward to in the country and property investors have inevitably been some of the first to take advantage of this great promise.

Asked what inspires him, Kostas Birtahas replies: “Developing new things, and moving ahead”.

To this, he swiftly adds: “Working hard. Working with good people”.

The desk at which we sit is immaculate and flawlessly clean. It is not his desk; we moved to it so as be to able to conduct the interview without disturbing, or being disturbed by, clients examining the displays elsewhere on the shop floor of Dromeas’s premises in Building 1 of Business Park Sofia.

Dromeas has been in the country since 1991. Athens-born Birtahas, although he has been in the country for about the same length of time, joined about six months ago.

The company is making its way in an extremely competitive market. There are very many furniture companies in Bulgaria, including a number, although not that large a number, specialising in office furniture. Nonetheless, while the niche is not overcrowded, the market is very competitive.

In some ways, the current shape of the company’s client base reflects the transitions in the country. It is serving companies newly-arrived in Bulgaria, mainly middle-sized enterprises. “The big companies already arrived in the past,” says Birtahas.

Clients include real estate firms, various commercial companies, and banks.

The biggest project that Dromeas in Bulgaria has landed for the moment is to supply furniture for all the branches of Postbank. Greek-owned Postbank has been in the country since 1991 and is this country’s seventh-largest bank. It has more than 140 branches, and spent about 40 million leva last year on opening and renovating a total of 40 offices.

Birtahas says that the Postbank project will take about two to three years to complete.

“We sat down with them and did the design for the whole branch,” he says. The project includes designing and installing the furniture for the bank’s central branch in the Soravia Centre.

He says that his firm is using to operating under time pressure, being asked by clients to come in to provide furniture within a tight deadline to enable the firm to open its doors as scheduled.

Dromeas has a significant global presence. Since 1979, it has been in the field of manufacturing and trading in office furniture, partition walls and filing systems. It is headquartered in Serres in Greece, about 80km north-east of Thessaloniki. Its production, warehousing and management premises at its headquarters cover an area of 45 000 sq m in a total company-owned area of 115 000 sq m.

The company is ISO 9001- and 14001-certified, and in 1999 was given an award by the European Union for employee safety. Its sales network operates in the major cities of Greece and in South East Europe. Its export department sends goods to the United Kingdom, Australia, the UAE, Australia, Egypt, Cyprus and Russia. Dromeas has been listed on the Athens Stock Exchange since 2000.

In Bulgaria, the company has plans for expansion. In Sofia, while it will keep its current premises, it will be expanding its offices in the capital city, to a location of 45 000 sq m in the area of Business Park Sofia. By the end of 2007, Dromeas Bulgaria will be branching out to a further five cities, Varna, Plovdiv, Bourgas, Stara Zagora and Blagoevrad. It currently has a sales staff of 10 people, and after next year’s expansion, its complement will rise to about 50, including team members that deliver and install office furniture.

Birtahas, inspired by the growth of the company and by his experiences of working in Bulgaria, has an optimistic outlook.

Since arriving in the country, he has gained a wide range of career experience.

His first post was with a car alarms company, again an icon of the early stages of Bulgaria’s post-communist transition, as such Western devices arrived to sound the changes. In 1997, with the economic crisis that hit the country, the company was sold and he moved on, to a bottle manufacturing company, where he stayed until 2001, subsequently moving on to a steel-producing plant in Pernik, 30km to the south-west of Sofia. He remained there until his move to Dromeas six months ago.

Of Bulgaria today, he says “it’s a different country” from the one he arrived in 14 years ago.

The country is “getting better all the time” although there continue to be problems because of bureaucracy. However, the fact of a six per cent growth rate is a significant one, he says.

That he has remained here is evidence of how he feels about Bulgaria. “After all, I arrived here only for a two-year contract, and here I still am.”

Asked what lessons made an especial impression on him in his early days in the country, he says, grinning: “Be careful of everybody”.

That was then and this is now, Birtahas emphasises.

To anyone who now asked him about investing in a business in a Bulgaria, his response would be “this is a great opportunity”.

“There is stability, there is predictability, and yet it is a place where things have not yet firmed up. It is a place for new businesses.”

He says that the environment is one characterised by significant transitions and challenges. First, the country is headed for membership of the European Union. Not only is competition on the domestic market steepening, but like every other country, competition from China is “around every corner, all the time”.

He says that Dromeas is looking to its competitive edge by having invested in the automation of production “and we are very competitive, price-wise”.

“Our strong point is service.” To him, this is a crucial element, and good service includes always being honest with customers, and “whatever you say that you will do, make sure that you do it, and in good time”.

The company’s human resources policy is to hire experienced staff and also to provide training.

Sales people are giving professional training in sales, and spend a week at the factory. “They get to know the phases of production, get to know the products and get to know the people that they are going to be working with.”

Asked about his management approach, and how he sees the balance between discipline and a consultative approach, Birtahas says: “Discipline and showing authority are very good in an industrial company. But this is a sales company. People are the strength of our company. We work very closely as a team. We help the sales staff at every stage of a sale. As to discipline, well, that is part of everyday life”.

Skill in positively motivating people is, of course, what makes the difference between a modern manager and a bombast.

“It is a fact that we are growing together. I tell the team that we are a modern company, that we want to expand, and that people putting in the effort will be compensated. We have all kinds of schemes for compensation, including bonuses and travel abroad.”

Asked what makes a good sales person, Birtahas says: “someone who knows the product, who has an open personality and is able to deal freely with the customers, and who is able to manage the process through to the end”.

He emphasises that the company’s staff work closely with clients to ensure that their needs are fulfilled. “We go to the office, make sketches, propose various combinations and come up with a solution. That is part of our everyday life.”

As yet, there is no association in the sector, although Birtahas says that this would be to the mutual benefit of players in the furniture business. Ideas and information could be exchanged, he says, and common interests pursued. “We have had some conversations with two or three of our competitors, but there does not seem to be a willingness to go ahead with the idea”.

In the meantime, Dromeas in Bulgaria is to join the Bulgarian International Business Association and will affiliate itself with the Greek business association.

As to how he sees the future of Bulgaria, Birtahas says that in the next five years, “life will become better.” Membership of the EU will mean, for Bulgaria, some “rearrangement” within the economy.

“In a competitive economic environment, with less bureaucracy and better laws, good SMEs will have a great place in this market.”

One area in which Birtahas would like to see reforms is in public tenders.

“This sector of the economy needs to operate in terms that are clearer, with a great deal more transparency. When a tender comes out, someone trying to read and understand it finds it difficult to understand exactly what it is that they are looking for.

“We are frustrated because there are things that a logical person reading the tender document cannot understand, and when we send a letter asking for clarification, we cannot understand the answer either.”

Strange things appear to happen in this respect, he says.

Tenders that are awarded for office furniture for the Government “go to different people, but no one knows who is behind them. Sometimes, there are companies that get tenders, and I have never heard of these companies before”.

He remains optimistic, however, that playing by the rules within the EU will bring with it greater transparency.

“We believe that we are competitive and that we should have a place in the market for the public sector.”

Working in the country for the past 14 years has given him great respect for Bulgarians. He is contemptuous of the notion that Bulgarians do not have a good work ethic.

“They are industrially minded and they care about their company much more than people in a lot of countries in Europe.”

He recalls an episode when he was still working in Pernik. The factory sent some of its machine operators to Greece for a training course. “When it was over, the people in Greece wanted to keep them there – they didn’t want to let them come back,” he says.

He nods: “Bulgaria is going to be a great country”.

By Clive Leviev-Sawyer

Accession to the European Union is inevitably going to play a central role in the future of property investment in Bulgaria.

Bulgarian property is already proving popular with investors looking for long-term capital growth, but there is no doubt that accession to the EU will encourage many more to purchase properties in the country with a view to capitalising on the extensive house price growth that will presumably ensue.

The road to EU membership has certainly been a bumpy one for Bulgaria and reports on its progress have let officials know that there is still some work to do. Despite this, financial experts in the country are seemingly confident that everything is on track to join on January 1st next year. The implications for property investment could be immense.

Speaking to the Sofia News Agency, Mr Maxim Behar, head of the Bulgarian Business Leader Forum, said: “I am even more optimistic than before. I am sure that we are going to join the EU on January 1st 2007. The tone of the monitoring report is very positive.”

The news agency reports that one of the chief roles of the Bulgarian Business Leader Forum is to encourage transparency and promote good ethics in the Bulgarian business sphere. These issues are all central to Bulgaria’s accession to the EU and there appears to be a great deal of confidence that things are moving in the right direction.

As EU accession draws closer, the Bulgarian property market is also beginning to benefit from increased access. More and more airlines are now taking advantage of high demand from investors, with particular interest being shown in the Black Sea resorts and around the ski slopes in Bansko, Borovets, Pamporovo.

The Bulgaria News Network reports that Bulgaria Air has now launched summertime flights from the Black Sea town of Burgas to London and it is a move that makes it even easier for investors to investigate their chosen areas.

Zlatin Sarastov, CEO of Bulgaria Air, mentioned that British nationals are now choosing Bulgaria as a destination for their main summer vacation, while others are looking to buy coastal properties.

It is thought that national carriers will soon run flights between Burgas and Madrid as well as Burgas and Dublin, while Bulgaria Air already has a couple of routes between European capital cities and Varna.

Bulgarian officials are continuing to work on the country’s weaker areas and it is looking increasingly like things will be in place for accession to the EU early next year.

Because it offers diverse opportunities for property investment ranging from ski chalets to beach houses, there is a great deal of hope that growth in the Bulgarian property market will be rapid once membership is achieved. With numerous airlines now offering flights to the country for competitive prices, it would seem that the foundations for this expansion are well and truly in place.