The value of major deals struck on the Bulgarian commercial property segment rose 35 per cent on the year to 878 million euro, a report released by …

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Commercial property deals top 878M euro in 2007 CB Richard Ellis

Investment firm Winslow Developments has secured a loan of 72 million leva from Raiffeisenbank Bulgaria to fund the construction of the first stage of its Winslow Gardens residential project in Sofias Manastirski Livadi borough, investor.bg reported.The loan has a maturity of 42 months, investor.bg quoted the bank as saying.

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Winslow Developments secures 72M leva loan for residential project

Varna municipality has earmarked 17.5ha for a new container terminal, weekly Stroitelstvo Gradut reported on April 7.The land lot, located on the …

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Varna municipality allocates 17.5ha for container terminal

Residential property prices in Sofia stabilised during the first half of 2006, Colliers International Semiannual Residential Market Overview said. The prices increased slightly in comparison to the prices previous years.

Ivan Vazov district became the second most expensive area in Sofia where the average price reached 1325 euro a sq m, the overview said. The most prefered area remained the Doctor’s Garden where prices reached 1700 euro a sq m.

The middle segment of the market in Sofia was the most active one. Clients prefered completed property. Two-bedroom apartments were demand the most, the overview said.

The supply of holiday homes in the mountain regions registred a 152 per cent increase since June 2005. The most prefered location was Bansko mountain resort, where the apartments costed more than 1600 euro a sq m.

The coastal resort property supply increased by 37 per cent or 6000 units for the past year. More than 22 500 units were currnetly in different stages of development, the overview said.

St. Vlas resort registred the highest prices, varying between 600 euro a sq m and 1850 euro a sq m.

In Sofia, as well as in the seaside, the property supply exceeded the demand.

Real estate prices in Bulgaria have increased by 20% over the last year, according to London-based Knight Frank Estate agents.

Bulgaria ranks second in respect of property prices growth after Latvia, whose capital is enjoying a 45.3% rise for the said period, the agency’s survey showed.

The ongoing trend of significant increase is due to the low inflation rate, the growing life standard and the easy access to mortgage credits, according to experts.

Within five years, the Russian capital Moscow will rival London as the world’s most expensive city, Knight Frank’s experts note.

The index, which covers 30 countries or capital cities, is based on official statistics or local survey data.

Disillusionment with the quality of life in Britain, the cost of living and “Nanny-state” are the reasons most people cite for leaving the country, a survey has found.

According to a recent survey for Quest Bulgaria, English language monthly magazine about Bulgaria and Bulgarian property, people are shifting from buying holiday homes in Bulgaria and opting for a permanent move there. And it’s happening four times faster than in France.

The move, led by the under 50s, shows a rapid trend away from the ski resorts and the sun-kissed beaches to rural areas, with more than half of all property buyers opting for the country life.

A huge 52% of all buyers are intending to purchase in rural areas, double the number of one year ago. With only 20% for ski and 23% for coast, the turn-round in where buyers are heading is significant. Purchasers feel they can get a lot more for their money in the country areas.

Few people at first looked to Bulgaria as a permanent base, but in the last couple of years the numbers are growing rapidly: 56% of respondents said their reason for buying in Bulgaria was for a permanent move. Some young couples are even taking their children and educating them in the country.

More than half (52%) are also opting for older properties with just 29% now preferring off-plan or new build options.

In this year’s survey of more than 2,000 people, the 30 to 40 age group have gained ground with an increase of over 20%. The previous year 55% of the buyers were in the group of over 50s.

OLD PROPERTY DECREASES IN VALUE

Property prices in Bulgaria were beginning to stabilise, Capital newspaper reported.

The price of old property began to decrease due to the mass construction in bigger cities and in popular resorts.

Property prices went up by 4.7 per cent on the average during the first three months of the year, data of the National Statistical Institute said.

Until recently new and old property sold at nearly the same prices, Capital reported. Location, quality of additional works and the completeness of the project came as secondary factors.

In Sofia, Varna, Plovdiv, Bourgas and Bulgaria’s coastal resort supply already surpassed demand, which started affecting prices, Capital reported.

Despite the decrease the National Statistical Institute presented prices remain stable overall without great changes. Six cities registered price decrease in the second quarter of 2006, including Blagoevgrad, Kurdzhali and Plovdiv.

A new report has revealed that Bulgaria is making good progress towards meeting its required targets for entry into the European Union.

Bulgaria is confident of accession into the EU in 2007 and despite an earlier report insisting that some improvements would be needed, the latest research from the EU has found that the country is now making good progress. It had previously been stated that there were a number of areas that Bulgaria needed to work on to guarantee its accession and the latest report suggests that the country is now well on its way to meeting those targets.

Franco Frattini, European justice, freedom and security commissioner, has stated that Bulgaria is doing well in its attempts to improve the battle against organised crime and fraud – two areas in which the country had been ordered to improve. Mr Frattini is visiting the country ahead of its expected accession next year and according to the Sofia Echo, he has been impressed with the efforts he has seen to improve the country.

The continued progress of Bulgaria in areas such as crime is also helping to improve the country’s reputation and increase the number of people looking to visit the country. As its tourism continues to grow – and it is anticipated that the number of people entering the country over the coming few years will grow significantly once it becomes an EU member state – the opportunities for property investors are set to boom.

And as the country continues its progression towards entry in to the European Union, it is also aiming to develop its tourist economy. According to Bulgarian news agency BTA, the Bulgarian government has recognised that there is now a need to bolster interest in the country with travellers and to boost the country’s image abroad.

Therefore, a recent summit of interested parties concluded that, although investor interest is currently high, without a strong tourist base that demand from investors will quickly drop off. It was agreed that international promotion of Bulgaria as a top tourist resort is needed and this consensus also brought offers of help from the private sector. Private companies involved in the talks stated that they are ready to help the country realise its potential by pushing it onto the world stage and helping devise strategies and advertising campaigns which would benefit the national economy by enticing more visitors to Bulgaria.

Ski and seaside tourism have already been two areas which have proved highly successful for Bulgaria and the country is now aiming to build on this reputation in these areas as well as expanding into new sectors, such as cultural and alternative tourism.

Strong price growth appears to be continuing in Bulgaria with the average apartment value rising by 1.6 per cent between April and June.

The average price for a square metre of property in the country has now reached 819.3 leva (£285), up from 806.1 leva (£280) in the first quarter, although the price increases have been anything but uniform.

Some of Bulgaria’s busiest areas, it seems, are experiencing the strongest house price growth, which would appear to be a reflection of Bulgaria’s progress as it approaches EU accession. Cities and town centres have gradually been developed to meet the demands of industry and tourism and property investors are now reaping the benefits.

Figures from the National Statistical Institute illustrate that Varna is still one of Bulgaria’s prime areas for property investment.

During the first quarter, a square metre of land in Bulgaria’s third largest city cost 1,237.8 leva (£430) and this has now reached 1,263.8 leva (£440), reflecting strong demand for properties around the Black Sea coast.

The province of Montana, meanwhile, saw prices rising from 561.8 leva (£195) in the first quarter to 615.4 leva (£215) in the second, in another of the most impressive increases.

And while apartments in Bulgaria’s lively and cosmopolitan capital city of Sofia are proving hugely popular at the moment, property investors are still snapping them up at a good price. In the second quarter, the average price was around 1,322.7 leva (£460) per square metre and it is an option that certainly appeals to many investors as Bulgaria continues to boost its standing within Europe.

But the ski resorts in Bulgaria are also attracting a huge amount of interest, largely because of the potential for rental income from tourists visiting the areas. The buy-to-let sector in Bulgaria still has a long way to go before it can compete with the likes of Spain and France but Bansko in particular is beginning to attract a staggering number of ski tourists each year.

Citing mediapool.bg, the Sofia Echo reports that construction in Bansko’s Gramadeto area is set to end at the beginning of 2007, but that a new golf course is soon to be built between Bansko and Razlog.

The report speculates that investors will be focusing on projects including Spa centres, five-star hotels and apartment complexes, as the region begins to accommodate tourists throughout the year.

Once this has been achieved, rental demand for properties in and around Bansko has the potential to be considerable and investors have already shown a great deal of enthusiasm for these opportunities.

The average property price in Bulgaria has risen with 1.6% in the second quarter, compared to the first three months of 2006, National Statistical Institute announced.

The reached level calculates at leva BGN 819.3/sq. m. (EUR 417.4/sq.m.; US$ 529.7/sq.m.). Six out of 27 regional towns mark significant growth in prices –2 -15%. Sofia estate has been the most expensive in the last three months – BGN 1322.7/sq.m.
(EUR 674 /sq.m.; US$ 855.2/sq.m.), followed by the seaside towns of Varna and Burgas.
The average price of estate in Bulgaria has increased with 36.6% in 2005 and is equal to BGN 738/sq.m. (EUR 376/sq.m.; US$ 477/sq.m.).