Monday, November 5th, 2007
The office market remained stable in contrast to the industrial one thanks to the good number of class A and B offices for sale and rent. Industrial terrains enjoy investor interest as compared to other sectors on the market in Bulgaria. Demand in this industry much outpaces supply, Foros analysis shows. This is thanks to the country’s accession to the EU and its success in establishing a broad network of relationships with countries from within and without of the EU.
The demand of warehouse and logistic areas in big cities grew, and the existing industrial infrastructure proved to be insufficient for the boosted economic activity. This accounts for the enhanced interest in regulated plots and agricultural lands with a view to subsequent industrial and warehouse construction. All industrial areas in Varna have seen a large increase of land prices since the beginning of the year. It has been estimated at 105 per cent for the whole municipality (the newly established Topoli area saw a 200 per cent mark-up).
Plots asked average 22 euro/sq m at the beginning of 2007, whereas at the end of September they sold at as much as 70 euro. Plots in the industrial districts within the city itself were even more expensive. The South industrial area attracted the greatest attention, partly due to the future movement of the port complex and the projected construction of a terminal. Prices have risen by 150 per cent since the turn of the year – from 40 to 100 euro/sq m. The district in Metro hypermarket’s vicinity exhibited a 43 per cent price hike, and plots in the West industrial area grew by 50 per cent. (They started at 100 euro/sq m in January 2007.)
The city zoning plan envisions a 50 per cent construction density and a building intensity factor set at 2.5. Large-area edifices, mall establishments, retail centres, and factories with environmentally-friendly production output are on the go, Ivan Trendafilov, Varna’s chief architect thinks. Brokers predict that appreciation of plots will go on in 2008 due to the region’s urbanisation. (Specialists remember that, after passing of the zoning plan, plots in Metro’s vicinity grew twelve-fold.)
The office market remained stable in contrast to the industrial one thanks to the good number of class A and B offices for sale and rent. To exemplify: prices of offices in central Varna rose from 1250 euro/sq m to 1350 euro, accounting for an eight per cent hike since the beginning of the year.
Friday, November 2nd, 2007
New settlements may appear, others will vanish due to the demographic collapse. There is reorientation in the demand from low-quality and cheap properties scattered around the countryside to gated communities with gardens and sometimes with private pools, brokers say. This trend is set by the clients who give prominence to the comforts and safety of the complexes. Moreover, these sites are sold key-ready which saves the buyer all the finishing works and the security guards guarantee the peace and quiet of the residents. Almost all such developments offer maintenance of the common parts as well.
Some of the developments are set among nature. The houses there range from 2 to over 100 depending on the area of the plot. However, if they are within the limits of a village or a town the optimal number of houses is from 2 to 5, brokers claim. Each house is sold with a private garden or with enough area that would guarantee the ‘breathing space’ of the residents. Such is the project near the village of Avren. Its first part, the so-called Lake House, has already been sold. In principle, the construction of the houses begins after a buyer shows up and lasts from 6 to 8 months. In the case of Avren the investor is a local entrepreneur and the clients are mostly Britons. The other type of development has 15-20 houses. They are built on large plots of land and resemble small holiday resorts. Such is the case with the project near the village of Lyahovo which is set 4 km from the Albena holiday resort and includes 134 houses. The main disadvantage of this type of development is the phased construction which turns the area into a construction site for quite a long time. This problem is overcome when the complex is offered for sale after being completely built. But such projects are a rarity because the entrepreneur plans to receive money from the already built sites and then continue constructing the others.
Prices of houses in gated communities range between 70,000 and 120,000 EUR for total built-up areas of 90 to 170 square meters, as they are set about 10-15 km from a well-known tourist region. The homes in very attractive areas, as is the Delta Hill development at the foot of the Vitosha Mountain, cost up to 250,000 - 300,000 EUR. Experts think that if the new holiday resort boom continues the developments may well appear on Bulgaria’s geographic map. On the other hand, some small villages nestled on the mountain slopes may vanish due to the lack of inhabitants.
City Market, 02.11.07
Thursday, November 1st, 2007
Pfohe Mall, the first mall in Varna, officially opens on December 1. Its occupancy rate exceeds 90 per cent, the specialised rental office of Foros National Real Estate Company announced. Foros owns the exclusive rights to let out all of Phohe Mall’s retail areas and has developed the project’s overall concept. Pfohe Mall has been classified as a Fashion/Lifestyle Mall, according to the International Council of Shopping Centres.
A constellation of popular brands, such as OVIESSE, Pierre Cardin, MEXX, Tom Tailor, Hush Puppies, KENVELO, Furla, Adam’s shoes, O’Neill, KILLAH, Patrizia Pepe, Enrico Coveri, Mariella Burani, Riccione, Rossignol, Quicksilver, Fila, and Oxxbow opted for renting an outlet in the mall. Among the tenants are:
· high couture leaders Purple, Galdini, Classic, Ariston’s;
· fast food giants McDonald’s, Nordsea, Coffee Republic;
· mobile service providers Globul, M-TEL, Vivatel;
· front-runners in the services sphere Piraeus Bank, United Bulgarian Bank, Alfa Bank;
· retail chains Technomarket and Perfect Home;
· entertainment venues Sesame casino and Galaxy bowling.
Find more information at http://www.pfohe-mall.com/
Friday, October 26th, 2007
This excellent project of Kranevo Panorama is located in Bulgaria, right on the Black Sea. It is situated right by the well-known resorts of Golden Sands and Albena, yet still retains the charm and beauty that characterises the Bulgarian coast.
The development boasts 471 one and two-bed apartments with terraces. Lift and storage room together with all the facilities in the communal areas make this project unbeatable as a holiday home or as an extremely worthwhile investment.
A residential complex designed with all the necessary elements for it to be enjoyed. Adults and children’s swimming pools, sporting facilities, parking area, children’s play area, gardens, etc.
Thanks to the development’s location it boasts magnificent and extensive views of the Black Sea.
Thanks to MangleBulgaria
Wednesday, October 24th, 2007
The ceremony of the 2000-decare Black Sea Golf & Country Club was held on October 24 in the coastal town of Kableshkovo, Pomorie Municipality. “The terrain looks like it has been created for a golf course on purpose. But when we first came here three years ago, this site was designated for a dung-hill. Fortunately, we came to an agreement with Pomorie Municipality and now we can create something beautiful.” said Thomas Gallagher, one of the project’s investors.
The project is evaluated at 194 million euro. Nineteen million of that will be invested in infrastructure - roads, sewerage, electricity supply, and a waste-water treatment plant. The project is entirely financed by Thomas Gallagher, David Newman, and Nicholas Gallagher. At the present moment, the three men manage investments in Europe at a total value of over 1 billion euro. Pomorie Municipality joined Kabland Ltd, the joint stock venture set up to develop the project, by apportioning almost 2000 decares of land for the complex’ construction in the picturesque area of Kableshkovo.
The complex will include a championship golf course (18 holes, 850 000 sq m), various sports facilities, a four- or five-star hotel, and houses and apartments with a bed-capacity of minimum 3000. After completion of the first development phase, in three years, investors expect the infrastructure, the course, the sports facilities, hotel, and 700 villas and apartments to be finished. At the present moment, the project has a Detailed Zoning Plan and an Environmental Impact Assessment (EIA). The project will be designed by Spanish architects, and local companies will carry out the construction. Eight hundred permanent new jobs will be created with the golf complex development.
Thomas Gallagher, David Newman, and Nicholas Gallagher invest mainly in holiday and commercial properties in Spain, France, the UK, Ireland, and the USA. They are developing another holiday project in Bulgaria - Premium Holiday Complex in the coastal town of Tsarevo, comprising 270 holiday apartments. The project is in the planning stage. Investors told journalists they are willing to invest in the Super Borovets project, as well.
“Golf tourism in Bulgaria is immature. There are many golf projects, but few are completed. The situation was exactly the same in Spain some 30 years ago. And now it is a world-famous golf destination. We believe Bulgaria has a great potential to develop as an attractive place for golfers,” said Thomas Gallagher. The golf industry’s global value is estimated at 15 billion euro a year. In Europe, there are at least five million golfers. Blagoy Ragin, chairmen of the Bulgarian Hotel & Restaurant Association, said Bulgaria has the potential to welcome 10 to 12 million tourists a year. About four million tourists have visited Bulgaria since January 2007.
Tuesday, August 7th, 2007
One billion euro will be invested in road construction and reconstruction over the next six years. By 2013, as much will be invested in Bulgaria’s transport infrastructure, announced Pmrime Minister Sergey Stanishev and Transport Minister Petar Mutafchiev during their inspection on the the construction of a railway connecting Plovdiv and Svilengrad yesterday.
Close to 100 million euro of the subsidy on Transport programme will be spent on road construction and reconstruction. Another 580 million euro will go for railroad infrastructure. And, 158 million euro are going to be spent for improvements of water transport, Neli Yordanova, director of Coordination of Programmes and Projects Directorate at the Ministry of Transport.
Tuesday, July 17th, 2007
Bulgaria and Russia rank among countries with highest rates of tax on residential property deals, says Global Property Guide research.
Research examined several types of expenditure including registration fees, real estate agency commissions, taxes for purchase and VAT, 24 Chasa daily reported.
Results for Bulgaria and Romania showed that purchase expenditures were nearly 25 per cent of the property value, the main reason being VAT.
VAT in Bulgaria is 20 per cent and 18 per cent in Russia. This is the factor ranking Romania and Bulgaria on the top positions concerning residential property taxation.
Out of old European Union (EU) countries, Belgium and Italy have the highest expenditures on property deals, the lowest feature Estonia, Slovakia, Litva and Danemark with less than five per cent of the property value.
Expenditures are higher in southern Europe and lower in UK and the Scandinavian countries.
The commission for the real estate agency is usually shared between the seller and the buyer. Research said that it usually ranges between 1.25 and 1.5 per cent for both sides. In Bulgaria the figure is 2.5 per cent to three per cent for both sides.
Monday, July 16th, 2007
More than 2 million euro have been invested in Bansko’s ski runs reconstruction, said representatives from Ulen, Bansko ski facility concessioner. The reconstruction programme has been developed by the world-famous consultancy company Ecosign Mountain Resort Planners. Ecosign’s study and concept for the snow-based Olympic venues led to the nomination and the election of Sochi/Krasnaya Polyana to host the Olympic Winter Games in 2014.
The length of the ski runs in Bulgaria’s Bansko reached the record-breaking 65 kilometers. Bansko ski runs’ reconstruction programme is coordinated with experts from the Environment and Water Affairs Ministry, the company stated..
This year Bansko hosted a round of the Women’s Alpine Ski European Cup. Next year it will hosts the initial round of the men’s competition.
