Archive for March, 2007
Wednesday, March 14th, 2007
Law changes will allow foreigners to buy agricultural land in Bulgaria
The amendments to the Ownership and Use of Farm Land Act are expected to open a market for tens of thousands of hectares of fields.
The changes allow agricultural producers from the EU to acquire ownership of arable land and forests, provided that they have been entered in the BULSTAT register and have become permanent residents of Bulgaria.
According to real estate agents , there has always been interest in Bulgarian farm land on the part of foreigners but the legal amendments now will untie their hands to invest in agriculture.
Sega newspaper
Tuesday, March 13th, 2007
Largest commercial property investment project in Bulgaria presented at MIPIM
Sofia Airport Center, the first international business park in Bulgaria, meeting all international standards, was officially presented at MIPIM, a prestigious international fair taking place March 13 to 16 in Cannes, Frances. The investor, Tishman International, and representatives of the leasing agencies, Cushman & Wakefield and Forton International, hosted an official reception in Magestic hotel yesterday.
The concept incorporates three core elements totalling approximately 165,000 square meters of commercial space:
- 100,000 square meters of Class A offices
- 22,000 square meters of prime logistics space
- 250 room, high quality hotel with associated dining, recreational, and conference facilities.
The centre will be located 300 metres form Sofia International Airport.
“We believe this investment will turn the area surrounding the airport into a dynamic business environment, and change the face of Bulgaria’s capital entirely,” said Alan Levy, chairman of Tishman.
Thursday, March 8th, 2007
Are Britons’ dream homes in Bulgaria facing the bulldozer?
With low house prices and pleasant climate, Bulgaria is one of the fastest-growing destinations for Britons looking for their place in the sun. But they have been warned to think twice, amid fears that they may be pouring their money into homes which could end up being demolished. Environmentalists have clashed with the developers of a five-star resort called the Golden Pearl, which was built in a Bulgarian nature park called Strandzha.
A number of Britons invested in the 120-home complex, which boasts swimming pools, spas, restaurants and an exclusive beach. But the Worldwide Fund for Nature has persuaded officials to revoke planning permission because they claim it breaches European Union environmental rules to build the resort in the park.
The WWF has written to the European Commission asking it to step in and order the development to be flattened. Yesterday it warned that the Golden Pearl is not the only complex attracting the interest of foreign investors which could be facing the bulldozers. Question marks have also been raised about other newly-built developments on the Black Sea coastline and the popular local ski resort of Bankso.
“Bargain” properties in Bulgaria sell for a fraction of Britain’s average house price of £200,000. The typical price is about £40,000 to £50,000, with buyers usually required to put down a 30 per cent deposit to secure a property. Tina and Lee Smith, from Southend, bought a £50,000 flat at the Golden Pearl as an investment.
Mrs Smith, 44, said: “We thought after EU membership it would go up in value, but is seems EU rules have put the whole thing at risk.” Another investor, Caroline O’Connor, said: “I am definitely nervous. It is a lot of money and I don’t want to lose it.” E&D Agency, based in Kilburn, North West London, is one of three agents which has been marketing the Golden Pearl properties to British investors.
Manager Anatoli Ivanov said the firm had helped 20 to 30 British investors to buy homes in the block, which was close to completion when the row erupted. In all, 67 Britons have invested in the site. He insisted the investors should not worry about their money and is hopeful construction will be completed. He said: “I don’t think our clients have anything to worry about. The contract allows them to ask for their money back, if they want.”
Becky Barlow
Daily Mail
Thursday, March 8th, 2007
Construction and furnishing exposition The Three Keys has opened in Varna
The 24th edition of construction and furnishing expo The Three Keys - Home, Office, Villa was opened on March 7 in the coastal city of Varna. The exhibition will be held in Varna’s Palace of Culture and Sports until March 11 2007.
Companies from various Bulgarian cities will take part in the exhibition. They will present their production on 510 stands and on total area of 5100 sq m. The expo is open every day from 10am to 7pm, entrance is free of charge.
The Three Keys is the biggest construction and furnishing expo organised outside Sofia. It is held two times per year in Varna, in spring and in autumn. It is also held in Bourgas, Veliko Turnovo and Stara Zagora. Companies from Italy, Turkey, Greece, Iran, Spain, Germany, Lebanon and Poland take part in the expo.
More than 90 000 people visited the last editions of the expo held in.
The exposition presents: designing, reconstruction, modernisation, and renovation building materials: panels steel and wood constructions, plumber and electrical materials, suspended ceilings, building hardware, PVC and aluminium frames, adhesives, paints; building machines and instruments; furnishing: furniture, floors, parquet, terracotta, doors, rolling shutters and blinds decorative elements; heating: fireplaces, water heaters, heating systems, air-conditioners, insulation materials, radiators and others; lighting, lighting fixtures, gardening tools and accessories .
Tuesday, March 6th, 2007
Bulgarian property - buyers seek larger mortgages
70 PER CENT OF REAL ESTATE DEALS IN BULGARIA FINANCED THROUGH BANK LOANS
The average credit for the purchase of property in Bulgaria was EUR 26 000 in 2006. In the first months of 2007 that amount grew by 20 per cent to reach EUR 31 300, according to Credit Centre, a credit financing consultancy.
The company reports that about 18 per cent of their client in January sought a mortgage for more than 100 000 leva, or EUR 50 000. In the same period last year, only 6 per cent of clients sought a mortgage of that magnitude.
Interest rates in Bulgaria will differ from European levels in the next two years although they continue to decrease, Bulgarian credit consultants said. The current interest rates of Bulgarian banks for mortgages and home loans are around seven per cent. They said that 30 European banks are interested in entering the Bulgarian market.
After Bulgaria’s EU accession European banks no longer need license to operate on the Bulgarian market. This will bring a lot of changes in the Bulgarian bank sector. The number of products offered by the banks will increase significantly. At the moment a Bulgarian credit consultant could offer 120 products, while a consultant in UK could offer around 4000 bank products. Loans provided in Bulgaria for the purchase of a home off-plan are less than five per cent, Credit Centre said.
The first furtive efforts of Bulgarian banks to finance 90 per cent of a home value are made. Now Bulgarian banks lend no more than 80 per cent of the property value.
Bulgaria Property Wise
Saturday, March 3rd, 2007
Little Known Ways to Profit from Bulgarian Property
When you’re in the pub talking to the local barman about life, the universe and what’s what and you discover that they’ve just gone and invested in an off plan ski apartment in Bansko you really know you’ve missed the boat – no offence to the theoretical barman in question, but if everyone and his cat knows that property in Bulgaria is the place to invest money, chances are all the big opportunities have been sold out.
However, Bulgaria is still an attractive, well packaged, accessible location that has room for growth for a few years yet – but what you really need to know are the little known ways to profit from Bulgarian property that will set your investment approach apart from the rest and ensure that your real estate ambitions are realised when other areas of the investment marketplace are saturated…
For example – if you’re thinking of buying an apartment in Sunny Beach or a condo in Bansko think first about the concepts of saturation and oversupply. If on the other hand you’re thinking of a way to promote Bulgaria to the UK baby boomers in search of a safe overseas country with a relatively temperate climate where their pension will take them far further then you’re about to begin to see potential – hint hint!
Away from the madding crowds on the beaches and in the ski resorts, a few investors have begun buying up attractive village properties in communities such as Hotnitza and Rujitza for example where there are already at least a few Brits and they are renovating these properties with a view to selling the ‘lifestyle’ as well as reselling the renovated and pristine property to those hungry for an affordable, attractive retirement retreat.
Targeting a particular buying sector of society such as those Brits approaching retirement age where there is strong demand to own a property as well as a certain amount of affordability and then really getting to grips with understanding that demographic group and what they want from a home is an excellent approach to profiting from Bulgarian property.
Another approach is considering the student market – there are for example at least seven colleges and universities in Varna Bulgaria, very few of which provide accommodation and all of which are actively working to attract and retain greater student numbers – these students need affordable bed-sits, apartments and shared houses and buying such property is currently affordable, it can return a decent and reliable income and be a good long term capital appreciating asset.
Or what about speculatively investing in parcels of land? Or developing commercial premises in developing locations popular with the wealthier overseas buyers? Or what about buying large but more remote properties and developing them as guesthouses and reselling them as a going concern having marketed them to those who enjoy outdoor pursuits…come on, get your thinking caps on, look past the obvious and discover all the little known ways to profit from property in Bulgaria and make your move.
ShelterOffshore.com
Friday, March 2nd, 2007
Construction boom in Bulgarian Sea Capital Varna leads to an increase in plot prices
More than 350 new buildings are under construction in the region of Varna, the city’s mayor KirilYordanov said. The majority of constructions are residential. Nearly 2000 new lodgings with total area of more than 260 000 sq m will be offered on the Varna property market once the buildings are finished.
National Statistical Institute (NSI) data showed that the number of construction permits issued in the final three months of 2006 in Varna was higher by 50 compared to permits issued for the same period in 2005. The increase of construction in Varna results mainly from big commercial projects, such as Mall Varna, Pfohe Mall and Orchid Mall Varna.
Simultaneous construction of three business centres has begun. The centres will be located in the centre of Varna and will spread on 26 000 sq m. Varna will also see a fourth business centre of more than 80 000 sq m of built-up area.
The construction boom in Varna will lead to an increase in plot prices
Dnevnik daily
Thursday, March 1st, 2007
British Family Find Better and Safer Life in Bulgaria
FED-UP of a life fraught with Britain’s escalating violence, one Yorkshire family knew they had to make a life-changing move. Sheryl and Del Trott quit Hull for Bulgaria – and in the former communist country they have found a better place for their three children to grow up. Three-bedroomed detached house also costs on average £56,000 and a supermarket shop half the price of here. A decent three-course meal out for two with wine is just £12.50.
The couple also feared Britain’s violent streets. In Hull their eldest son Karl, 18, had been the victim of school bullying, which culminated with him having a knife held to his throat on one of the city’s buses. They put their house, in Holderness Road, east Hull, on the market for £82,000 and began looking for their perfect home in Bulgaria. They found the right place in Bulgaria with a price tag of just £24,000. They then spent £6,000 renovating the 13-year-old property.
After just four months Mrs Trott, a 37-year-old former care home worker, said she and her husband would now never return, mainly because life was more relaxed and also because pressures on family finances were considerably less.
The kids are becoming more violent,” said Mrs Trott, who is originally from Armley, Leeds. Even if the young lads are not out on the streets causing trouble, I still wouldn’t have liked my little ones to be out playing. This is definitely a better place to bring up kids.”
As well as Karl, Mr and Mrs Trott have two younger children, 18-month-old Ellesh and Spencer, three. According to their mother, the children, who don’t start school until the age of seven in Bulgaria, are already picking up the language.
She said: “They already know the basics like how to say hello, thank you and goodbye. We aren’t so good though. We have a phrase book we take everywhere…”
Mr Trott, also 37, has not worked since the move, but is setting up a gardening business serving other English ex-pats. Back home, gardening was just a hobby for the former steel erector.
“One of the best things about living here is that you do not feel vulnerable, as I did in the UK,” said Mr Trott, who was born and brought up in Hull. “Here there is no violence and no threat of violence. There is nobody hanging around on street corners and it is all very family-orientated.
“The only strange thing I saw was last December, when the locals brought their pigs out on the streets to slaughter them. Apparently it is some kind of Christmas tradition.
“The other good thing is the cost of living. We couldn’t live in the UK on the amount of money we spend here, our bills alone there were around £800 a month. I wouldn’t want to move back to England for all the money in the world.”
Yorkshire Post Today