BAR ESTATES

Realtors: luxury properties not hard to sell

2008-09-16T20:15:00.002+03:00

Bulgarian property funds do not plan to raise fresh cash for investments and have no trouble selling their finished projects, the major market players said. The bulk of the companies have already secured resources and agreed bank loans but owned up to slower sales and pickier housing and holiday property customers. Offices on good locations and with developed infrastructure are still in demand. Holiday real estates are attracting buyers from Russia and the former Soviet countries and supply meets demand in the luxury segment. In the middle and low segments, supply outstrips demand. We are looking at a reflux in the home segment as prices are trying to settle, according to Todor Stoyanov, executive director of Prime Property BG. Real estate investment trusts came round the view that pressure is highest in the holiday segment but said that good projects find buyers. Property management funds would rather talk about a settling market, sifting through projects and a temporary stagnation than of a crisis. Park Management Company manager Atanas Georgiev said companies can no longer easily rely on sold or rented projects to finish new ones. Source: http://news.dnevnik.bg/

Bad household loans catch up with corporate loans

2008-09-16T20:13:00.000+03:00

The volume of bad loans for individuals and households almost touched corporate loans in end-July 2008 although individuals took some 11 bln levs less, central bank data showed. Bad consumer, mortgage and other loans of individuals added up to 468.5 mln levs. Bad corporate loans totaled 493.6 mln levs. Companies drew 28.5 bln levs worth of loans. Households and individuals borrowed a combined 16.9 bln levs. Banks’ retail loan portfolios grew as fast as bad and restructured loans. Bad consumer loans picked up 44.8 pct year-on-year as the whole consumer portfolio expanded by 47 pct year-on-year. Bad housing mortgage loans grew 48.9 pct and the whole portfolio added 50 pct. The close paces are due to the smaller growth rate of new loans, bankers commented. Bad and restructured loans combined soared by 282 mln levs to 962.1 mln levs for a year making 2.11 pct of the total portfolio. The combined profit of Bulgarian lenders surged 38.2 pct to 842 mln levs from January to July. Source: http://news.dnevnik.bg/

Greek Titan Group may put 200 mln euro into Lovech plant

2008-09-16T20:12:00.000+03:00

Greek cement maker Titan Group is mulling over pouring up to 200 mln euro into boosting production capacities in the northern town of Lovech, said economy minister Petar Dimitrov quoted by Focus news agency. The holding company has so far invested 51 mln euro in production operations in Bulgaria. It has units near Sofia, Zlatna Panega and Plovdiv. The company unveiled on September 13 a new production line at the Zlatna Panega factory wrapping up the first phase of its investment strategy. Titan Group is ready to build another production line provided that the future national development plan recognises the sector’s economic and industrial growth, said executive director Alexander Chakmakov. The new facility will increase to 1.2 mln tonnes the production capacity for clinker, the key cement raw material. Source: http://news.dnevnik.bg/

Consumer Credit in RON in Romania Exceeds 10 Bln Euros

2008-09-16T19:46:00.001+03:00

Consumer credits taken out by the Romanian population in RON went up to a level equivalent to 10.3 billion euros, a 36% increase on July last year, according to data from the NBR (National Bank of Romania), Ziarul Financiar reported.While overall there is a slowdown in the credit growth rate, consumer loans taken out by the population in RON jumped significantly in July. In fact, the 3.4% growth rate in July was the most accelerated rate this year, followed by the April rate, of 2.5%.The annualized growth was also above the one calculated in the previous month, but lower than in the first few months of the year. However, all the other categories of credit saw a slowdown. Data points to a slowdown in lending, and a significant slowdown is expected over the next few months.This is primarily due to the base effect, the volume of credits granted by banks is much higher than last year. From a 56% credit growth rate, I expect we will reach 40% by the end of the year, said Ionut Dumitru, head of Raiffeisen Bank's research department.Source: Profit.bg

Bulgaria attracts 150 000 Romanian tourists in summer 2008

2008-09-16T19:44:00.001+03:00

About 150 000 Romanians came to Bulgaria for their vacation in the summer of 2008, according to data published in the Romanian press.The total number of Romanians who went abroad for a summer holiday in 2008 is 700 000. Greece remains the most popular destination for them with over 250 000 Romanian tourists.The number of Romanians who visited Turkey over the summer registers the highest growth. Romania's Black Sea coast was visited by 100 000 foreigners in summer 2008.Source: News.bg

Assets of Bulgarian REITs Up by 67% in One Year

2008-09-16T19:42:00.000+03:00

The assets of Bulgarian real estate investment trusts (REIT) amounted to 1.54 bln leva as at the end of the second quarter of 2008, up by 67.3% year on year, data of the Financial Supervision Commission (FSC) show. It should be taken into consideration that a total of 68 REITs were included in FSC's statistical data for 2008, compared to 47 a year earlier.The combined assets of REIT's rose by 7.68% in the second quarter of 2008, compared to the first three months of the year. The REIT's managed 1.43 bln leva assets as at the end of March 2008.A total 56 of the REITs invest in real estate properties other than arable land. They managed assets for 925.78 mln leva as at the end of June 2008.Their assets amounted to 512.22 mln leva a year earlier and stood at 857.93 mln leva as at the end of the first quarter of 2008.FairPlay Properties REIT (114.13 mln leva), Serdika Properties REIT (80.69 mln leva) and Arco Twoers REIT (80.53 mln leva) are the three biggest companies in terms of assets. The last two, however, are not traded on the Bulgarian Stock Exchange (BSE).The six REITs specializing in the securitization of arable land managed assets for 532.4 mln leva as at the end of the first half of 2008.The assets of the six REITs stood at 300.41 mln leva a year earlier and at 482.52 mln leva as at the end of March 2008.The three biggest funds in terms of assets in this group are Bulgarian Real Estate Fund REIT (183.43 mln leva), Elana Agricultural Land Opportunity Fund (153.56 mln leva) and Advance Terrafund REIT (102.35 mln leva).The REIT specializing in the securitization of receivables rank third. Their number has increased from 7 to 9 in one year, while the value of their assets has gone down from 95.38 mln leva as at the end of June 2007 to 77.36 mln leva a year later. The assets of these REIT's totaled 85.6 mln leva in the first quarter of 2008.The top three REIT's in this group in terms of assets are Capital Management REIT (48.36 mln leva), Transinvestment REIT (15.33 mln leva) и Energetics & Energy Savings Fund SPV-Sofia (7.28 mln leva).Source: Profit.bg

SOFIX Companies' Proift Growth Slows Down in H1

2008-09-16T19:40:00.000+03:00

Ten of the 19 companies included in the calculation of the SOFIX blue-chip index of the Bulgarian Stock Exchange (BSE) posted year on year increase in profit for the first half of 2008, a check-up conducted by Profit.bg shows. Two of the companies posted losses for the first six months of the year and seven others booked a year on year decline in profit for the period. The average year on year increase in the earnings of the SOFIX components stood at 26% in the first half of the year. This marks a slowdown compared to the 43% year on year rise posted for the year-ago period. Neochim's profit, which went up by 382.57% in the first half of the year, contribute greatly to the results, even though the company has a relatively low eight in the index. Monbat, which has a relatively heavy weight in the index, booked a 124.8-percent year on year rise in profit for the first six month of the year. Except for Holding Roads (22.9%), Monbat and Neochim are the two companies with the highest increase in stock prices over the last year – 6.19% and 6.13%, respectively. Corporate Commercial Bank was the only other company that managed to post an increase in stock price over the last year. The stock of the bank has appreciated by nearly 3% over the period. A total of 15 of the 19 companies included in the calculation of the SOFIX posted stock price declines in the last year. Twelve of them saw their stocks decline more than the index over the period. The stocks of Albena, Euroins, Kaolin, Lead&Zinc Complex, Orgachim, First Investment Bank and Central Cooperative Bank have depreciated by more than 50% in the last year. Rousse-based paint and varnish maker Orgachim posted the highest decline in profit amongst SOFIX's components. The company booked a 52.3% year on year decline in profit for the first six months of 2008, compared to a 509-percent year on year jump for the corresponding period of 2007. The fact that one-off gains are included in the financial results of the companies for the past year should also be taken into consideration: Company Profit growth Q2 2008 Profit growth Q2 2007 Stock price change РЕ Albena n.a n.a. -50,21% 15,38 Elana REIT n.a n.a. -18,47% 2,28 Euroins -86,40% 200,48% -60,14% 13,43 Industrial Holding Bulgaria 71,70% -32,42% -39,88% 13,08 Kaolin -55,75% 132,07% -55,21%% 15,71 M+S Hydraulic 18,71% 30,00% -43,43% 18,78 Monbat 124,80% 80,00% 6,19% 19,99 Neochim 382,57% 28,70% 6,13% 5,98 Lead&Zinc Complex -86,72% 105,40% -64,75% 165,82 Orgachim -52,29% 508,65% -64,76% 27,01 Sopharma -43,50% 25,00% -46,82% 18,16 Sparky Eltos 88,00% n.a. -56,25 10,31 Bulgarian American Credit Bank 25,40% 62,30% -25,33% 14,22 Corporate Commercial Bank 83,50% n.a. 2,96% 23,48 First Investment Bank 24,40% 62,50% -53,36% 12,81 Central Cooperative Bank -26,00% 110,00% -63,76% 15,45 Toplivo 90,00% -64,19% -42,83% 10,38 Chimimport 8,02% n.a. -43,50% 8,62 Holding Roads -68,72% n.a. 22,90% 30,38 SOFIX -40,30% 12,61 Average 0,26% 0,43% Source: Profit.bg

20 Percent Less Foreign Tourists on the Romanian Seaside

2008-09-16T19:39:00.000+03:00

The number of foreign tourists on the Romanian seaside decreased by 20 percent this year, while the number of Romanian tourists who spent their holidays outside the country increased by 25 percent, according to Romanian Travel Agencies National Association (ANAT) officials.Greece, Turkey and Bulgaria are among the favorite destinations for Romanians, BusinessStandard.ro reports.Tour operators sales on the Romanian seaside increased by 5-20 percent. ANAT estimated a total 1.4 million tourists will visit the Romanian seaside this year.As for Romanians spending their vacations abroad, some 250,000 tourists went to Greece, while the number of tourists who went to Turkey increased from 80,000 to 130,000, according to ANAT spokesman Traian Badulescu.Source: Profit.bg

Prices of New Homes in Hungary Projected to Rise About 7% in 2008

2008-09-16T19:37:00.002+03:00

Hungarian real estate company Otthon Centrum projects the price of new homes in Hungary will increase about 7% in 2008, level with the rate of inflation, the Budapest Business Journal reports.Nonetheless, it still sees prices of both new and resale homes doubling in ten years, analyst Dávid Valkó said at a press conference on Wednesday.About 11,200 new homes will be completed in Budapest by year-end. Demand for resale homes is expected to fall 5%-10% during the year.Prices for resale homes in brick buildings averaged Ft 269,000 per square meter in the first half of the year. The price for free-standing resale homes was Ft 197,000 per square meter.The report noted that 10% of new home loans taken out in the first half were denominated in Japanese yen.Source: Profit.bg

Fourth BalPEx Exhibition Starts October 10

2008-09-16T19:35:00.000+03:00

The fourth edition of BalPEx real estate exhibition will take place in Inter Expo Center in Sofia between October 10 – 12.More than 300 projects from different segments will be presented on an exhibition area of 4,000 square meters.More than 150 companies, among which leading Bulgarian and foreign construction and investment firms, property agencies, financial and credit organizations will be presenting their businesses to individual and corporate clients.The segment of home properties will dominate the presentations this year as well – with over 50% of exhibitors belonging to this sector. This year there will be more office, commercial and logistics centers projects.The following residential complex projects will be presented for the first time: Zelenica in Sofia, Residencia Botanica and Prestige in Sofia's Boyana neighborhood, Vista Park in the area of Kambanite, VIP Complex Pavlovo, St Anna and St Stefan complexes in Sofia and many others.Pravetz Golf and SPA Club will also be presented for the first time. The projects includes a gold course, a hotel and adjacent properties. European Trade Center Sofia will also make a debut during BalPEx.The event sponsors are RE/MAX, Bulgarian Properties, Home for You and Hercesa International. Source: Profit.bg

Bulgaria Boasts Highest Real Estate Price Growth Globally in Q2

2008-09-16T19:33:00.000+03:00

Bulgaria retained its number one spot in the Knight Frank Global House Price Index with a 32.3-percent year on year growth in real estate property prices in the second quarter of 2008. Real estate property prices in the country marked a 32.3% year on year increase in the first quarter of the year. Global house price inflation continues to slow, with annual growth standing at 4.8% in the second quarter of 2008, down from 6.1% in the previous quarter, Knight Frank data show. Prices are now falling in almost half the markets listed in the Knight Frank Global House Price Index. Nevertheless growth rates in double figures are still being recorded in eight markets - Bulgaria, Slovakia, Russia, the Czech Republic, Hong Kong, Singapore, Cyprus and Colombia. The economies of central and south-eastern Europe appear to be the strongest performers, while northern Europe (including the Baltic States), together with the United States, are suffering the most. The Knight Frank Global House Price Index shows that global house price inflation is continuing to fall back, with much of continental Europe now seeing low or negative growth, according to Nick Barnes head of international research at Knight Frank. Bulgaria is at the head of this list, where values have grown at 32.3% over the past year, and have now risen by 68% over the past two years. Admittedly this occurred from a low base, but demand from international investors and domestic economic growth remain strong, although there are fears of oversupply, particularly in the resort locations. Strong performance in Slovakia and the Czech Republic is also driven by robust economic growth. The rapidly depreciating housing markets of the Baltic States – led by Latvia, where prices fell by 24.1% over the past year, demonstrate that rising inflation and mortgage costs are real risks for the emerging economies of Europe. However, housing markets in countries such as Spain, Denmark, the UK and Ireland are all being severely challenged by the global credit squeeze. Country Y/Y % change in Q2 Y/Y % change in Q1 Rank Q2 2007 Bulgaria 32,2 27,1 3 Slovakia 31,2 20,5 5 Russia 26,5 53,7 1 Czech Republic 25,4 20,5 5 Hong Kong 25,1 - - Singapore 16,3 25,2 4 Cyprus 12,9 8 20 Colombia 12,5 12,8 10 Iceland 9,6 9,6 17 China 9,2 7,1 22 Australia 9 10,1 16 Belgium 6,9 11 12 Croatia 5,8 6,9 24 Austria 5,4 7,7 21 Italy 5,4 5,4 28 Canada 4,8 9,1 18 Indonesia 4,4 7 23 Sweden 4,3 10,3 14 Serbia 3,8 0,2 36 South Africa 3,8 15,5 7 France 3,2 6,8 25 Finland 2,8 6,5 26 Spain 2,4 5,8 27 Malaysia 2,2 11 12 Greece 1,7 4,2 29 Източник: Profit.bg

Obtaining Loan For the Purchase of Prefab Panel Apartment Gets More Difficult

2008-09-16T19:32:00.001+03:00

Bulgaria's mortgage loan market was on vacation in August after the steep growth recorded in July. The lending was also affected in the holiday month, including the volume of the loans extended and their average size. The trend was witnessed in all cities across the country and may be attributed to the holiday season and the vacations of the banking employees. A considerable amount of the loan applications were not processed and will be reviewed in the start of the active season in September. August is a traditionally weak month for the banking system, according to Tihomir Toshev, executive director of CreditCenter. The smaller number of inquiries does not come as a surprise as we expect this slowdown to be offset during the most active period for the purchasing of properties, which is the end of the calendar year. All the declines mentioned today are for the month of August, while July was quite active, which actually means that the market has retained its normal pace, Toshev added. The activity in August was aimed mainly in the field of consumer lending, where nearly 40% of the extended loans were intended for residential property repairs improvements. The interest rates on loans continued to go up in August. This trend does not affect the market anymore, as consumers with stable incomes have been the most active for the second month in a row. The good news for the market is that many customers are more cautious because of the global credit crisis, which reduces the risks for both parties. The type of properties bought with bank loans is indicative of this cautiousness. The share of pre-fabricated panel apartments declines at the expense of apartments in new brick buildings. A total of 74% of the loans in August were extended for the purchase brick apartments, 20% of the loans were extended for the purchase of prefab panel apartments and 6% for other type of properties. This comes as a result of the banking criteria (the repayment term of the loan combined with the age of the prefab panel apartment should not exceed 50 years) and the forecasts of real estate agencies that the prices of prefabricated panel apartments will go down at the expense of the newly built properties with good location. The average size of the loans extended in August stood at 47,351 euros. Mortgage loan repayment term – Aug 2008 Up to 10 years 4,08% 10 to 15 years 16,32% 16 to 20 years 28,57% 21 to 25 years 20,41% 26 to 30 years 20,41% Over 30 years 10,21% The share of the loans extended in Bulgarian currency went up to 21% in August but this is only temporarily, according to CreditCenter's experts. City Avg loan size in euros Ratio euros/leva % Sofia 68730 92/8 Varna 47952 73/37 Bourgas 44880 85/15 Plovdiv 43357 83/17 Stara Zagora 34500 85/15 Rousse 38555 53/47 Blagoevgrad 32600 81/19 Veliko Tarnovo 35500 76/24 Pleven 32100 75/15 Dobrich 41657 80/20 Kardjali 25385 90/10 Sliven 23122 75/25 Yambol 26290 46/54 Източник: Profit.bg

At. Garov: Client Shift Witnessed on Holiday, Investment Property Markets

2008-09-16T19:30:00.002+03:00

Profit.bg talked to Atanas Garov, managing director of Colliers International, about the condition of the real estate market in Bulgaria, its short-term development prospects and whether the supply has shifted towards another group of clients, different from the ones from the western countries: Mr. Garov has the slowdown of the economy in Western Europe affected the real estate market in Bulgaria? The slowdown affected the domestic real estate market a long time ago but not all its segments. There was a price correction in some of the segments before the slowdown in Europe. For example the holiday properties market. A lot of segments of the market, such as the letting of commercial centers, the office space markets and logistics properties are developing well provided the present market conditions. One could say that the market niches where the deals are sealed between an entrepreneur and the end client have not been disrupted by the crisis (with the exception of holiday properties). The only market niche that was affected directly by the global trend is the investment market. There is a slowdown in the number of deals and a price correction at present. After all, this is a market that depends directly on the external factors for the country. On the other hand market segments, such as commercial space, offices and logistics and to a certain extent residential properties, which rely on domestic demand, have only been slightly affected by the recession. Have foreigners started selling properties in Bulgaria already? Colliers does not specialize in the sales of holiday properties (where foreigners own most properties) and unfortunately we cannot comment on this issue. What are the optimistic, realistic and pessimistic prospects before the real estate market provided the recession concerns in the leading euro area countries? Optimistic: The interest rates in the euro area drop to their levels prior to the crisis in the next quarter. The volume of deals sealed on the investment market rise considerably, which prompts more sales to end clients. Pessimistic: Interest rates retain their current levels in the long term. Similarly to the dotcom boom the interest and the clients shift to other sectors, such as alternative energy production and agriculture. Are there companies in the sector that have shifted to another group of buyers, different from the ones from Western Europe? This issue may be discussed from the standpoint of holiday properties and investment properties. There is a shift on both segments, however. Russian buyers are showing interest in holiday properties. No clear shift may be outlined on the investment properties market yet due to the decline in the volumes but Middle Easter companies have been showing interested in Bulgaria and Southeast Europe recently.Source: http://profit.bg/index.php?cid=4&sid=0&aid=4470&sec_name=LATEST

German retailer Lidl starts construction of Bulgarian outlets

2008-09-16T19:28:00.000+03:00

German retailer Lidl will start building a pilot outlet in the city of Lovech, Northern Bulgaria, said the company. Work on another five outlets will begin by the end of 2008 to be followed shortly be the launch of construction of as many Lidl stores. The retailer hopes to have 10-12 operational outlets here by 2010. The company will also invest in a distribution center. It has bought the site for the center but did not specify the location. Lidl is part of Schwarz Unternehmensgruppe which already has a retailing business here through the Kaufland chain. Market research outfit Planet Retail recently said the discount retailers are expected to own 4% of the Bulgarian grocery market. The local retail market will soon welcome a further two new entrants, Penny Market and Plus.

Household deposits continue to be biggest resource available to Bulgarian banks

2008-09-16T19:19:00.000+03:00

Household deposits continue to be the biggest resource available to the local banks, accounting for 36% of borrowed capital in the system, shows data of the central bank on the balance sheet of the industry by late July. In a month, Bulgarian households deposited a further 480 mln levs to bring their deposits to 21.3 bln levs by the end of July. Corporate deposits added 538 mln levs in a month to 20.5 bln levs. Those two segments increase by a monthly 1.6% the size of borrowed funds. Their month-on-month growth rate is close to that of banking assets. The balance sheet assets of the banks rose 1.8% in July to 66.9 bln levs. The banking assets have increased by 37.9% (or 18.4 bln levs) in the past year. Five of the biggest local banks managed over half of the sector's assets by the end of July and retain their market share month-on-month at 57.5%. Credits and receivables (including financial leasing) rose to 52.8 bln levs or 79% of the sector's balance sheet. Corporate credits increased 2.9% month-on-month to 30.1 bln levs while retail exposures added 3.7% to just over 16 bln levs. The year-on-year growth of the corporate and household portfolios is 52.4%. The end-July profit of the banking sector rose 38.2% year-on-year to 842 mln levs.

Balkans mythbusting

2008-08-29T20:07:00.002+03:00

Clients doubtful about the Balkan region? Balkan Holidays’ Chris Rand gives you the tools to sell Bulgaria, Croatia, Serbia, Romania and Montenegro Myth: I’ve heard pickpocketing and petty crime is a problem Chris says: In Croatia this is not a problem at all. In Bulgaria, because many resorts tend to be busy in the high season, there have been occasional incidents of pickpocketing. However, there is now an increased number of police in the resorts to help stamp out this problem, and this has proved effective. Myth: It can’t compare with the likes of France for a skiing holiday Chris: Some French ski resorts might have larger ski areas than Bulgaria, but skiers pay a lot more for their lift passes! Bulgaria has three main ski resorts: Bansko, Borovets and Pamporovo. They are perfect for beginner and intermediate skiers. Plus, the apres-ski is without doubt the cheapest in Europe. Myth: I want a five-star hotel. They don’t have any upmarket hotels there Chris: The Balkans has plenty of five-star hotels. In Bulgaria there is the Kempinski Grand Arena in Bansko (right), the Melia Grand Hermitage in Golden Sands and the Barcelo Royal Beach in Sunny Beach. These are genuine five-star hotels managed by international hotel chains. Croatia also boasts some five-star properties. In Dubrovnik, there is the Hotel Excelsior, the Dubrovnik Palace and the fabulous Libertas Rixos. Myth: Only no-frills carriers fly to the Balkans – but I refuse to use them Chris: There are numerous charter flights to Bulgaria and Croatia. Balkan Holidays flies from 18 UK airports to Bulgaria and from five to Croatia, plus there are other charters, national carriers and British Airways. Myth: ‘The Black Sea’? Sounds like the beaches will be awful Chris: The Black Sea was named by widows in mourning for their sailor husbands – I admit it is not the most inviting name! Beaches in Bulgaria are sandy and tend to be very long so there is plenty of room, and all have been awarded the EU Blue Flag for cleanliness. The beaches in Croatia have pebbles, and the Adriatic is crystal-clear. Myth: It might be OK for a beach holiday but I want culture and art Chris: Most of our clients do visit Bulgaria for a beach holiday, but if you want culture you only have to leave the boundaries of the resort to find the real Bulgaria. There are art galleries and museums in all the major cities across Bulgaria, containing artefacts dating back centuries. Croatia is also rich in culture. Myth: I like good food, but the Balkans is not famous for its cuisine Chris: The food in the restaurants is excellent. Delicious fresh fish is always available, plus you can try authentic dishes such as chopska salads and moussaka. Food in hotels has really improved in recent years. Myth: There was fighting in Serbia and there’s been the trouble in nearby Georgia. It might be unsafe Chris: If it wasn’t safe, we, and other operators, would not send customers there. The Yugoslav civil war ended in 1995, and the Serbian ski resort of Kopaonik is safe and fully operational. Myth: Bulgaria is in eastern Europe, so the weather must be cold and grey Chris: Bulgaria borders Greece and Turkey to the south so it is warm and sunny during the summer, reaching temperatures of about 35C in July–anything but cold and grey. Myth: Bulgaria is now in the EU, so it must have the euro as its currency Chris: Yes, Bulgaria is in the EU, but it does not have the euro as its currency. Consequently, the cost of living there is still great value, and it seems Bulgaria won’t qualify for the euro for a few years so that’s great news for British holidaymakers!

A doubled number of ski routes threatens Vitosha

2008-08-29T20:04:00.001+03:00

A new ski zone could be constructed on Vitosha Mountain, home to a nature park on the outskirts of Sofia, the coalition of non-governmental organisations To Sustain the Nature in Bulgaria (SNB) wrote in a media statement on August 26. On August 27, the Vitosha nature park office confirmed that in July, it had received an investment proposal for the new winter resort. The investment proposal contradicted the 10-year management plan for Vitosha nature park that was approved by the Cabinet in April 2004, the nature park’s spokesperson told The Sofia Echo. The as-of-yet-unnamed investor plans an expansion of the already existing ski zone on Vitosha Mountain by felling 20 ha of woods and urbanising more than 30 ha of high mountainous pastures. But according to the current management plan for Vitosha, any construction of new ski sites was banned, SNB said. A map that the coalition received in a plain envelope without a sender’s address showed that on a territory of four sq m were planned 29 ski routes, 17 lifts and a drag lift, which was an exceptionally high number, SNB said. Currently, Vitosha Mountain has 12km of ski pistes – but following construction, this number would be more than doubled, as the map showed an additional 13km. Eight km of the old ski slopes would be renovated, SNB said. The design of the new ski zone was done by the architectural firm Ivis Project and Design OOD, which also designed the Bansko ski zone in Pirin national park and the illegal ski zone Panichishte-Ezerata-Kaboul, planned for construction in Rila Mountain and Rila national park. Approached for comment by The Sofia Echo, Ivis OOD's spokesperson confirmed that the company had prepared the plan, but would not reveal who commissioned it. According to the company, it was not about a new ski zone, but only about expanding the existing winter sport facilities. “Simply developing a concept for ski zone is not a cheap pursuit,” SNB said. According to the coalition, it was disturbing that somebody was planning a ski zone in Vitosha nature park, where this action could be carried out only following legal procedures and only with serious political backing, and in violation with Bulgarian and the European environmental legislations, SNB said. by Elitsa Grancharova,

Homebuilding in US at 17-year low

2008-08-29T20:01:00.002+03:00

The number of homes and apartments being built in the US sank in July to the lowest level in more than 17 years, government figures show. Builders started work on 965,000 properties, on an annualised basis, from 1.08 million in June, the Commerce Department said. However, this was not as bleak as some had been expecting. Separately, inflationary pressures saw US wholesale prices shoot ahead by 1.2% in July - its fastest pace in 27 years. Core inflation, which strips out energy and food costs, climbed by 0.7% from June, the Labor Department said, well above the the 0.2% rise which had been forecast. The rapid wholesale inflation seen in July was largely linked to energy costs during the month, which saw crude oil hit a record price of $147.27 per barrel, sending petrol prices soaring. But there are hopes that prices rises will abate, now that the price of oil has fallen by more than $30 per barrel. "Though commodity prices have come down significantly from record highs in mid-July and the dollar has strengthened, consumers can still expect to see increased inflation for some time to come as the producer price pressures feed through to consumer prices," said Arek Ohanissian, an economist at the CEBR. Grim Economists have been studying forward-looking information for signs that the US housing slump was past its worst. However, the Commerce Department data made for grim reading, with the number of construction permits issued - seen as a reliable sign of future activity - down 17.7% on an annual basis. And the number of new homes being constructed last month was down by 39.2% compared with July 2007. "The continued weakening of the housing market is an additional pressure and households will feel further squeezed in terms of real disposable income," said Mr Ohanissian. He said that "given this state of affairs and the general weakness of the economy" the Federal Reserve was likely to keep interest rates low at 2% - despite rising inflation.

Sofia Airport Handles 300,000 Passengers in July

2008-08-29T19:59:00.001+03:00

Sofia airport serviced a total of 297,873 passengers in July, up by 17 % compared to the corresponding period of 2007, when passenger traffic at the airport stood at 254,468 passengers. The airport handled a total of 9,336 passengers on July 29, which turned out to be last month's busiest day. The Sofia airport registered an increase of 32% in the number of international charter flights. The number of passengers on such flights handled by the airport rose by nearly 45% compared to the corresponding period of 2007. Foreign companies accounted for 88% of the international charter flights to and from the airport. London was the most preferred destination from the Sofia airport with a record-high 41,000 passengers in July, up 50% year on year. The Sofia-Vienna destination ranked second with 25,300 passengers in July, which represents a 15-percent year on year increase. A total of 20,800 passengers traveled to Frankfurt last month. The passenger traffic on domestic destinations went up by 45% in July 2008, compared to July 2007. The cargo shipments handled at the Sofia airport in July rose by 8% to 1,703 tonnes.

Outlook for Sofia Office Space Market Good

2008-08-29T19:55:00.002+03:00

Despite the effects of the credit crunch and forecasts for an overall slowdown in economic growth, Bulgarian gross domestic product defied the expectations of economists by recording seven per cent growth in the first quarter of 2008, real estate consultants CB Richard Ellis said in a Sofia office market overview for the first half of 2008. Bulgaria remains attractive to international companies that outsource and offshore parts of their activities to the country, driven by the availability of well-educated and experienced specialists at lower salaries as compared to Central and Eastern Europe, Western Europe and the US, as well as the low corporate and personal income taxes (both 10 per cent), among others. Therefore, according to the report, Sofia’s office market will continue to develop actively at least in the next two to three years. Office space completion in the first half of 2008 set a record, with completions coming in at levels of over 87 per cent of all completions in 2006 and 58 per cent of all completions in 2007, CB Richard Ellis said. As a result of this large amount of completions, Sofia now has modern office stock of approximately 808,000 sq m, according to the company. This number will continue to increase, in view of more than 250,000 sq m scheduled for completion by the end of the year. That said, the consultancy doubts that all announced office projects will actually enter the market by the end of the year. CB Richard Ellis expect that no more than 150,000 sq m will actually enter the market by the end of the year. Another 500,000 sq m are expected by the end of 2010, to make the total pipeline approximately 750,000 sq m.

Housing Prices in Sofia Increase

2008-08-13T22:25:00.000+03:00

The price of housing has increased by 21% in the first half of 2008 compared to the second half of 2007. The average price for the period is EUR 1094 per square meter, real estate agency "Address" announced. Terminal prices are seen throughout residential districts in Sofia, in which there is record increase as well as a lot of supply. These are districts like Mladost, where prices have increased by 25% for half a year, Studentski grad (Student town) - 23,46% increase and Lyulin - 21,62%. Deals are getting harder to be made - with a bigger number of views, after a longer period of decision-making and with the presence of bigger added value for the chosen property. The increased supply of apartments on the secondary market is another characteristic trend on the market in the first half of the year. A major part of the owners started to offer after the price increase, credit interest increase and the April inflation of over 14%. Thus, housing bought with investment goals that were not rented for a long time is now offered on the market. The price of rent has increased by almost 2% in the first half of the year. Tenants have paid EUR 5,25 on average per month. In April offers of new construction apartments for rent increased. As a result the supply of these apartments increased by 6% in the first quarter of the year and 15% in the second. The most desired districts for purchase of housing are Lyulin, Mladost, Druzhba and Ovcha Kupel.

70 Million EUR Investment in Biggest Office Center in Bulgaria

2008-06-08T10:52:00.002+03:00

70 million EUR will be the cost of the biggest office center in Bulgaria - the European Trade Center.The construction works are presently planned to be finished in January 2010.The large project has mobilized big part of the sector's capacity.By the project's data round 60% of the constructing and engineering resource of Sofia is occupied with the center's realizing.14 cranes are presently working on the building site.The European Trade Center is located on the busiest boulevard in Sofia - ‘Tsarigradsko Shose' and includes the highest office building in construction process in Bulgaria for the moment.The new center will be build using a serial of ‘green technologies', lowering the energy expends and optimizing the functional environment in the center. The roofs will be planted.The center is being built in a common comnplex with ‘Carefour Tsarigradsko Mall' and will offer individual projecting of office surfaces.

US investors put USD 615 M in European real estate fund

2008-06-02T21:16:00.001+03:00

Dublin-based Quinlan Private, international private equity and real estate group, has raised USD 615 million of equity capital from US investors to invest in properties across Europe."There's a strong degree of interest among US investors in European properties, and the fund has been able to capitalize on that" a spokesman for Quinlan Private told Commercial Property News (CPN), adding that the fund is now oversubscribed.The Quinlan Private European Strategic Real Estate Fund is to invest in real estate assets in Western Europe, as well as parts of Central and Eastern Europe.The fund has so far invested in retail developments in Bulgaria and Slovakia and office properties in the Netherlands, the UK and Germany.

New ferry connects Bulgaria and Romania over Danube

2008-06-02T21:15:00.002+03:00

The new ferry complex connecting the Bulgarian port of Nikopol and the Romanian port of Turnu Magurele over the Danube River will opened in mid July, 2008.The news was announced by Bulgaria's Deputy Minister of Transport Dimcho Mihalevski during his visit to the northern Bulgarian town of Nikopol.The ferry complex has been constructed already but some additional safety guarantees are being completed at the moment.About EUR 6,5 M have been invested in the ferry, EUR 2,5 M of which have been provided by the Bulgarian government, whereas the rest is EU funding under the PHARE Program.The Bulgarian side of the ferry complex will be operated by the Bulgarian River Shipping company.The Deputy Minister of Transport Mihalevski said in Nikopol that the new ferry would have a great economic impact as part of the country's policy to tackle the marginalizing of its border regions by opening up its borders.Mihalevsky reminded that another ferry line between the city of Silistra and the Romanian town of Caluras had been opened recently, and said that two more border checkpoints would be opened on the Bulgarian-Greek border by the middle of 2009.The Bulgarian platform of the new ferry can carry 12 trucks, and crosses the river in only eight minutes. Yet, the fees for using it have not been set because the ownership issue has not been settled.The rehabilitation of the 45-km road connecting Nikopol and the district center, the city of Pleven, is going as planned.

Highway to be Build in the Rhodope Mountain

2008-06-02T21:14:00.002+03:00

The constructions of a highway in the Rhodopes will start in the few months.This was reported by the vice minister of development Dimcho Mihalevski.The highway will go through Gotse Delchev - Dospat - Borino - Devin - Smolian - Madan - Kurdjali and will shorten with hundred of kilometers the current round route through Borovetz resort.The project is ready and the first sod will be done in the beginning of 2009.It is foreseen that the Greek partners will give 30 million EUR for the purpose and the Bulgarian government will bestow 50 million BGN (25 million EUR) more by ‘Regional Development' operative program.

Energy Minister Backs Declaration on Re-starting of Kozloduy's Units 3, 4

2008-06-02T21:12:00.002+03:00

Economy and Energy Minister Peter Dimitrov backed in principle Wednesday a declaration on reconsidering the decommissioning of units 3 and 4 of the Kozloduy Nuclear Powers Plant by nuclear experts. The document was discussed at an international nuclear forum held in Varna, BTA reported.The two reactors were closed in late 2009 in line with a commitment to this end undertaken by Bulgaria in the process of its EU accession talks.The declaration is addressed to the Council of Europe, the European Parliament, the European Commission, Bulgaria's President and Prime Minister. According to the experts, there are sufficient preconditions to re-consider the decision on the shutting down of the two reactors. In their view political will is needed so as to take such step. "If a decision to this end is taken the units may be re-started for several months so as to resolve the energy crisis in Southeastern Europe," the declaration says.Minister Dimitov told the participants in the forum that, currently, there is an upward trend in nuclear power engineering worldwide. The traditional energy sources are gradually being exhausted. Due to this fact and the need to protect the environment, interest in the N-plants is renewed again, Dimitrov noted. The Belene Nuclear Power Plant will have two 1,000-megawatt units as the first should be ready by 2013.The management of the Belene N-plant's waste is a key problem in the implementation of the project about the construction of the facility, said Nuclear Regulatory Agency Chairman Sergei Tsochev. The location of the waste site is to be set following a broad public discussion, Tsochev specified.The demand of the National Electric Company (NEK) for a markup of prices has been prompted by the producers' position, NEK CEO Lyubomir Velkov said. According to him, the State Energy and Water Regulatory Commission should comply with this demand so that the company would not sustain losses on the domestic market.The Varna Thermo-electric Power Plant does not fulfill its quota for the production of electricity for the domestic market, Velkov further said. If the company does not start meeting its commitments, it will be deprived from the right to export electricity.The new Energy Efficiency Bill will be drafted and moved to Parliament by September, Energy Efficiency Agency Chairman Tasko Ermenkov said. Under the Bill the producers should sell electricity at preferential prices to customers, having implemented energy efficiency projects.

Pazardzhik BT Acquires Majority Stake in Bosnia's Fabrika Duhana Mostar

2008-06-02T21:09:00.002+03:00

Pazardzhik-BT () has won a procedure for the acquisition of 67% of the capital of Bosnia's Fabrika Duhana Mostar (Tobacco Factory Mostar), the Bulgarian Stock Exchange (BSE) said.Additional talks will be held for the signing of a contract for the sale of the majority stake in the Bosnian tobacco company.Pazardzhik BT booked 108,000 leva (55,200 euros) loss in the first quarter of 2008, compared to 43,000 leva (22,000 eiros) loss posted for the year-ago period. The operating revenue of the company declined from 771,000 leva (394,200 euros) as at the end of March 2007 to 540,000 leva (276,100 euros) a year later.Major shareholders in Pazardzhik BT include Chesteam with a 49-percent stake and Eco Trade 2005, which owns 36.24% of the capital of the public company.Pazardzhik BT is not among the most liquid stocks on listed BSE. The stock was last traded on March 26, when 50 shares in the company traded hands at a price of 6.3 leva apiece.

Credit costs tame Bulgarian housing market

2008-06-02T21:08:00.002+03:00

After the banner 2007 when transactions involving residential property rose 4-5% and prices jumped by about 30%, the Bulgarian market in 2008 is calmer and more balanced as the cost of borrowing increases, said Teodora Dimitrova, managing partner at the Era real estate agency. The softening of the market is also evident from the growth forecasts for 2008. Housing prices are expected to continue on the up, adding 15%, a pace twice as slower than last year's. 'Demand and supply on the residential market have reached a parity over the last two months,' said Dimitrova. Data of the Era network of real estate agencies indicates that the busiest residential markets are those in Sofia, Burgas and Varna where construction is also most intensive. Sofia homes start from 670 euro/sq m

Nord Stream Project Facing More Uncertainties and Delays

2008-06-02T21:06:00.001+03:00

Nord Stream, the Russo-German gas pipeline project on the Baltic seabed, seems to be receding into the distance – analysis by Vladimir Socor, Jamestown.org reported. According to Chairman of the Russian Gas Society and Vice-Chairman of the Duma Valery Yazev, the project’s first trunk line is to become operational by 2012 and its second line by 2013 (rather than 2010 and 2011 as initially envisaged). The main delaying factors include cost overruns on construction on the pipeline’s overland portion in Russia as well as the rapidly rising price of steel pipes, The Budapest Business Journal is reporting today. Speaking at a Russian-German gas conference on May 20 in Berlin, however, Yazev attempted to shift part of the blame onto Baltic riparian countries, most of which are questioning the pipeline’s construction through their respective exclusive economic zones or opposing it outright. Yazev criticized European Union authorities in Brussels for “doing to little to remove the objections of riparian countries. … We expect more in this regard from our European partners” (Financial Times Deutschland, May 21). Such wording reflects Moscow’s wedge-driving tactics toward the EU. It implies that some of the EU’s new member countries, such as the three Baltic states and Poland, are nuisances that need to be reined in by Brussels or Berlin. In the Nord Stream case, however, the objecting countries include the “old” EU member countries Sweden and Finland. The Russo-German consortium had announced at its foundation in 2005 that the Baltic seabed pipeline’s first trunk line would become operational in 2010 and the second one in 2011. In 2007, however, the consortium changed those dates to 2011 and 2012, respectively. Yazev’s announcement brings the second postponement. Finland and Estonia were the first to be asked by the Nord Stream consortium in 2007 to conduct preparatory activities in their territorial waters and economic zones. More recently, Sweden received a similar request for activities preparatory to construction. The three countries exercised the legal right to turn down some elements in those applications and to request clarification on some other elements. None of the objections were political. They focused on the project’s impact on the Baltic environment, navigational safety, fisheries and other marine resources, and legal rights of riparian countries in the respective territorial and economic zones. With Gazprom the driving force in this Russo-German consortium, its applications to those three countries seem to have failed to meet European standards. The Swedish government complained, for example, that major environmental aspects were simply omitted from the application. Estonia had made similar observations last year in its reply to the application. Insufficient gas resources is the major delaying factor that Moscow would not acknowledge publicly. The West Siberian gas field Yuzhno-Russkoye, with estimated reserves of 800 billion cubic meters, was initially earmarked as the main source for Nord Stream. That resource, however, would clearly not suffice for a project of Nord Stream’s declared capacity and time frame. Since 2006-2007 the Russian government has held out the prospect of gas from the Barents Sea offshore Shtokman field feeding Nord Stream. Development of Shtokman, however, has fallen behind schedule by several years. It can hardly be expected to materialize before 2015, and then at such high costs as to push the overall costs of Nord Stream even higher. The project’s initial cost estimate of €5 billion is now acknowledged to have been substantially understated, with new estimates approaching €10 billion. As a net result of these factors, Nord Stream has not lined up the financing for the project. In its present state the project does not seem bankable. Nord Stream’s Baltic seabed portion is projected to consist of two trunk lines with an annual throughput capacity of 27.5 billion cubic meters each. The combined capacity of 55 billion cubic meters is roughly equivalent to one half of Germany’s annual gas consumption. At present, of the gas used in Germany 18% comes from internal production, another 18% from the Netherlands, 26% from Norway, 34% from Russia, and small volumes from other areas. With production tending to decline in the Netherlands and Norway, many in Germany seem reconciled to growing dependence on Russia, and some circles seem even euphoric about it at times. Some areas in northern Germany offer favorable geological conditions for building underground large-capacity storage sites. Preparations are under way for constructing at least two such sites. At Hinrichshagen near Greifswald (in Mecklenburg-Vorpommern), terminus of the Baltic seabed pipeline, the joint venture Gazprom Germania plans to build a storage site for 2 billion cubic meters by 2011. The joint venture Gazprom Export-Verbundnetz Gas plans to build one site and enlarge another, both near Bernburg (in Sachsen-Anhalt), with a combined capacity of 1.7 billion cubic meters also by 2011 (Financial Times Deutschland, dpa, BNS, May 21, 22). Given the mounting uncertainties about the Nord Stream project’s viability, let alone time table, plans to use gas from that source in Germany may have to be put on hold.

Resort operator Albena '08 revenues to add 10%

2008-06-02T21:03:00.002+03:00

Resort operator Albena said it anticipates a 10% increase in revenues to 105 mln levs in 2008. Net operating income is seen at around 70 mln levs. The boost will come as a result of the overhaul of accommodation facilities and an expected decrease in vacancies. Congressional tourism is expected to generate for the company 3.3 mln levs this year. Albena said its holiday complex in Primorsko is on track for 5.12 mln levs in revenues. The company is forecasting a 9% uptick in expenses to 85 mln levs in 2008 on higher payroll, food supply and financial costs. Operating profit is seen rising 9% year-on-year to 28.5 mln with net profit at 18.4 mln levs.

Bulgarian pension funds may invest in local water sector

2008-05-23T17:41:00.001+03:00

The Bulgarian government will urge the local pension funds to inject some cash in the nation's underinvested water sector which needs to absorb 10 mln euro by 2015, said deputy regional development minister Dimcho Mihalevski.A meeting has already been held with the investment committee of the Bulgarian association of supplementary pension insurance companies to acquaint them with the new bill on water and sewerage services.The two sides discussed the placement of bonds by the water companies that could be added to the portfolios of the pension funds.Milen Markov, chairman of the investment committee, said the government could put in place a mechanism to ensure that a portion of the future revenues of the issuers will be set aside to repay the issued debt.The pension companies are interested in buying at interest rates close to the market levels and yield levels higher than those of government securities and lower than corporate bonds, said Markov.The idea will be discussed also with the EBRD and consulting companies.A failure to raise the money needed to overhaul the nation's water supply infrastructure would push the completion of the reform back towards 2035-2040.

Why Investing in Bulgaria Worths?

2008-05-23T17:39:00.003+03:00

Bulgaria is one of the fastest growing property markets in Europe offering investors low property prices, continued strong capital growth and high rental returns.Executives at a property exhibition taking place in Larnaca and Nicosia thios week are expected to argue that Bulgaria also provides investors with one key element above many other European investment hotspots; "value for money".Dwayne Holt, Nikolay Pavlov and Nimet Kama, CEO of Platinum Global, will be speaking at presentations at the Golden Bay Hotel in Larnaca on Wednesday and at the Europe Hotel in Nicosia on Thursday, where they will explain how for a relatively low outlay investors can buy high quality well managed properties offering great returns over the medium term, and with Bulgaria really only starting in its investment cycle, these trends should continue well in to the future.Foreign direct investment in Bulgaria reachjed more than EUR 1.6 bln in 2004, leaving behind developed countries like Italy, Greece, Austria and Portugal. The amount of confidence shown by both institutional and retail investors is down to the very positive economic indicators emanating from the country.High prices and over-development in much of the Mediterranean means investors are looking at Europe's next favourite destination, Bulgaria. It offers properties at some of the lowest prices in Europe, and benefits from favourable weather and a low cost of living.This low cost alternative for holiday makers is proving to be immensely popular with tourists and tourist numbers have increased by 20% for the last four consecutive years.Bulgaria is also regarded as one of the best investment destinations in Europe with strong capital growth rates made possible by extensive EU investment in infrastructure and tourism. Against this backdrop of positive, targeted government and EU investment, real estate prices are proving remarkably resilient to the global credit crunch. Bulgaria is the first country in central and eastern Europe to establish a national Real Estate Market Index, REMI, which shows property prices have been increasing considerably for the last four years, and are anticipated to continue rising steadily by 15% in the upcoming years. These capital growth rates are unheard of in more established markets such as Spain and Portugal.According to the WTO forecasts, 12 mln tourists will visit Bulgaria in 2020, which will make it the most promising destination in the eastern European region.Continued development of the tourist infrastructure such as airports and rail are accommodating the large increase in demand from major tour operators in the area and will ultimately allow for a 50% increase in capacity over the coming years.Bulgaria has 370 km of coastline boasting some of the best beaches in Europe and a summer that lasts from April to October.The country has an impressive scenery of mountain ranges and breathtaking views with many lakes, waterfalls and caves, which remain unspoilt, despite the rise in tourism. It has a rich, diverse history and large numbers of architectural treasures. A unique element about Bulgaria's geography and climate is that it can accommodate an all year round tourist season with both the Black Sea coast and the numerous ski resorts located in the southerly mountain ranges.A typical sea village, Aheloy, keeps in tune with what is a fascinating national treasure of natural landscapes blending perfectly with a charming sea. It has 5,000 inhabitants and is 3km from Ravda and 6km from Sunny Beach and Nessebar.There is a small stone beach and a quay for boats. Aheloy is also famous for its beautiful fruit gardens and vineyards and is a unique mixture of preserved green sites, calm and pleasant sea and sandy beaches.By contrast Bansko is a charming and historic city at the foot of the north-eastern part of the Pirin Mountains, with a population of about 9,500. Positioned 6km south of Razlog, 60km south-east of Blagoevgrad and 160km south of Sofia, Bansko is a climatic mountain resort, famous for ski sports because the location of the city allows favorable conditions for skiing from the month of December to April.The ski tracks have a length of 65km from 1,100m to 2,550m above sea level while the ski facilities rival many western European resorts, but at a third of the price, while extensive new development is currently underway in the neighboring villages which will vastly increase capacity and ultimately make the Bansko region one of the most sought-after ski destinations in Europe.

USA Invsted $600 Mln in Bulgaria for 18 Years - US Ambassador Beyrle

2008-05-23T17:38:00.002+03:00

In the last 18 years the American Agency for international development had invested in Bulgaria round $600 million. This was informed by the US Ambassador to Bulgaria John Beyrle, by the time of the international press conference on theme ‘Democracy that give result'. The Ambassador calculated that the US Government invested per $10 every year in each Bulgarian citizen. The local experience in the development of the democracy may be favorable for the Western Balkans, the diplomat added.

European University to Open Doors in Bulgaria

2008-05-23T17:37:00.001+03:00

An agreement of opening a European University in Bulgaria was signed, the mayor of Pernik Municipality Rositza Yanakieva announced.The university will be based in the city of Pernik (Southwestern Bulgaria, near Sofia).The University will be private and will accept 1840 students in the subjects: business administration, computer systems, information, telecommunications, architecture and engineering.The project's coordinator is Professor Hristo Hristov from the Technical University - Sofia.The university is expected to start action in 2009.Pernik Municipality engaged itself to cooperate for maximally fast realization of the construction and starting of the project.

Return on investment of Bulgarian properties

2008-05-20T13:27:00.002+03:00

New report of the Bulgarian think-tank Industry Watch analyzes the residential property market in Bulgaria for the first quarter of 2008. According to the information there the return on investments (ROI) in Bulgaria’s property is more dependent on sale price than on rental yield.
For the Q1 2008 the rental levels for two bedroom apartments increased by 4%. For the same period the purchase prices of residential properties are recording a faster growth. Thus the property investment pays out in 188 months taking the sale price into account while for rental yields it pays out for 234 months.

The Industry Watch report includes a forecast with annual growth in property prices in Bulgaria of 13-14% in the next five years. According to the report the foreign investments in real estate will decrease slightly.

John Beyrle Opens an Extremely Innovative Bulgarian-American Cultural Center

2008-05-20T13:25:00.002+03:00

The US ambassador in Bulgaria John Beyrle together with his wife Jocelyn Green and the Center for psychological research will open today a Bulgarian-American cultural center in Sofia for people with disabilities. This is an extremely innovative and very positive project for popularization of the creative opportunities and the talent of people with certain specificities. The American experience in the field of integration of the people with disabilities will be applied in the center.It will be demonstrated how the human rights are a priority of every society and how discrimination is overcome through active action in the cultural field.

Brokers: Market To Start Picking Up Slowly

2008-05-20T13:24:00.002+03:00

As usual Profit.bg asked on Monday three market experts to share their expectations about the trade on the Bulgarian Stock Exchange (BSE) this week. Here is what they had to say: Vesselin Morov, broker, Naba Investments The optimism that swept through the market in the beginning of May is indicative of the lack of a clear trend – in the search of new lows for the indexes and the establishment of a short-term intensive positive trend. I expect the trend to continue this week, while the market sentiment will be influenced mainly by the positive data from the consolidated first quarter reports of the holding companies. Nevertheless, we have to bear in mind that the market is still far away from a change in the medium-term sentiments of the market participants. We are witnessing a rather speculative trade in thin volumes. Nikolay Vitleemov, broker, Varchev Finance After seeing the first weekly gains of the stock indexes ranging between 5 and 5.5% and an increase in the average daily trading volumes last week we could expect the first attempts for bigger growth. The optimism on most positions is growing. As a result the total market capitalization of the companies listed on BSE reached 23.71 bln leva at the end of last week. Infrastructure companies may once again get in the spotlight this week. Positive news on the construction of the Trakia motorway may spark new stock price hikes, after the companies in the sector gained 20% last week. Chimimport will also be closely watched by investors after advancing by 4.54% last week. Ognyan Dechev, executive director, Populiarna Kasa - 95 The market will most likely continue to pick up slowly this week. The current stock price levels are similar to those of year and half, two years ago and are very favorable for buyers. The infrastructure projects and the positive financial results of many companies will support the rise of the capital market, but all this will happen slowly and with periods of consolidation. I am optimistic about the development of the market in the medium term and the long term. Furthermore, there are signs of recovery on the global capital markets after the turmoil. The article is not a recommendation for buying or selling stock.

UniCredit Group: Bulgarian property market past peak

2008-05-20T13:23:00.002+03:00

The Bulgarian property market scaled its peak in 2007 and is transitioning towards a more sustainable growth pattern in terms of both prices and number of transactions, UniCredit Group said in its latest overview of Bulgaria and the region. According to the banking group, some 15% of Bulgarian intend to buy a real estate property over the next decade. Demand is highest among the younger demographic and is driven by mortgage availability and expert Bulgarians. At the same time, the number of Bulgarians that can afford a new home remains limited. The acquisition costs per 1 sq m of housing space had doubled to 2.6 average monthly pays by the end of 2007. In an UniCredit Group poll, most of the potential home buyers said they will take out a mortgage loan. Intense competition between mortgage lenders has loosened the screening standards with the repayment period stretching out to 35 years. Some mortgage products on the market cover 100% of the market value of the transacted property. Mortgage loans added up to 2.9 bln euro by the end of 2007, accounting for 40% of household debt and 10% of the nation's GDP, said UniCredit Group. The Bulgarian property market remains stable on the backdrop of the global financial crisis, said the analysis of the banking group. There are indications for a softening on the holiday apartments segment where foreign buyers have been pulling back and the cost of borrowing has been on the rise. The stagnation of the segment was further compounded by planning mistakes in the development of some coastal areas. UniCredit Group forecasts that the demand/supply dynamics suggest a gradual moderation in property price growth over the next couple of years. However, credit growth and the leveling-off of real income will continue to point housing prices upwards. The number of housing units in Bulgaria stood at 3.729 mln in 2006 with 99% privately-owned. Over 80 of homes are old and of poor built. Some 40% of all homes have two rooms.

Romania Ready to Remove Danube Bridge Tolls

2008-05-20T13:14:00.002+03:00

Bulgarian European Affairs Minister Gergana Gruncharova described the readiness shown by Romania to remove the tolls charged for crossing the Danube Bridge at Rousse-Giurgiu (North Central Bulgaria-South Central Romania) as "a very encouraging signal." Gruncharova was reacting to a statement made by State Secretary Adrian Ciocanea, Head of the Romanian Government's Department for European Integration. The bridge toll topped the agenda of Gruncharova's recent meeting with Romania's Secretary of State for European Affairs Raduta Matache, BTA reported. "I am happy with the Romanin side's prompt reaction; this matter has been pursued by the Simeon II National Movement party for six years," Gruncharova said, adding that "this is not a transportation matter, rather, the easing of free movement for persons is a European question: the interior of the EU must unite people. The bridge is currently the only one between the two countries and the tolls are illogical. The fewer bridges there are, the easier the means of travelling over them must be." Another bridge, at Vidin-Calafat (Northwestern Bulgaria-Southwestern Romania), is under construction, and a third one, at Silistra-Calarasi (Northeastern Bulgaria-Southeastern Romania), is on the drawing board.

SPA and Wellness Tourism in Bulgaria to Flourish

2008-05-18T19:41:00.002+03:00

The interest of Bulgarian and foreign tourists towards local SPA and wellness tourism is increasing. This was reported after the latest research of local State Agency of Tourism (SAT).According to the research 18% of the Bulgarians and 134% of the foreign tourists devote time for SPA tourism during their winter vacation.One of the main priorities in the strategy for developing of the sector is exactly this kind of tourism, pointed out Stela Baltova, vice chairperson of SAT.The interest towards SPA in world measures is enormous. According to specialists this must be the tourism product around which to be united all European countries and to offer it on the world market.

The Property Market Turnover Topped 11 Billion Leva Last Year

2008-05-18T19:40:00.002+03:00

Last year construction activity in Bulgaria was up by 15% which makes it one of the fastest developing sectors in the country, according to a CED analysis. The hike was prompted by the demand for modern residential buildings, commercial and administrative properties, warehouses and logistics centers. During Bulgaria's first year as a EU member country the prices of construction materials and services rose by an average of 12.6%. This year the price hike is expected to be a little lower – at 11.8%. The appreciation is a result of the growing prices globally and of the more expensive services on the local market. The active construction sector stimulates all activities related to real estate. The record turnover of 11.36 bln euros made the sector the absolute leader in Bulgaria last year. According to a Global Property Guide survey dated January 2008 Bulgaria was number one in the world in terms of annual appreciation of properties (30%) last year. Some are talking about a market bubble, but analysts say that even though the price growth is expected to slow down, there are no indications that they will be declining any time soon. Most Bulgarians finance their home purchases with credits. December 2007 was a record month for the crediting sector in the country in terms of both size and number. The reason for that tendency are the high prices. Most banks have raised the amount of financing from 70% to 90% of the home price. The average size of credits reached 51,148 euros at the end of the year, passing the psychological 100,000 BGN. The market of commercial properties continues its dynamic development, the CED analysis also states. Demand for properties near newly opened commercial centers is soaring. Demand for office space is expected to stay stable. The Law on floor property management was not passed in 2007 and because of its three-year long delay Bulgaria will not receive funds via the Residential Policy framework within the EU's Regional Development program by 2010. After several attempts to pass the law, the Government gave a green light to the project that concerns some 4.5 mln people in Bulgaria who live in the apartment buildings. This year Bulgaria has to introduce the Eurocode 8 in construction projects, which concerns the development of seismic maps. All EU countries must introduce the code by 2011.

Public Tender for Reconstruction of Part of Burgas Airport

2008-05-18T19:38:00.002+03:00

The concessioner of the Bulgarian airport “Burgas” announced a public tender for an implementor of the rehabilitation of line “A” and an air-strip for taking off and landing.“Fraport” anticipates the reconstruction to include line “A” with an area of 1500 sq. m as well as 100 sq. m of a air-strip serving airplanes' taking off and landing.The company, which will be selected for implementing the reconstruction, should finish it in three months – this is the period the German company gives for completing the work on the air-strip, informs BGNES.The guarantee for participation is 1000 EUR. According to the law this sum could be up to 1% of the tender's value. The applicants should present documents, proving their economic, financial and technical capabilities for implementing the task. Recommendations from previous clients for good work are also needed.

Retail Space Rents in Sofia Depend More on Quality Than Demand

2008-05-18T19:35:00.002+03:00

The last few months have once again seen Bulgaria’s progress in terms of economy, political situation, and social environment – a trend which accelerated after the country’s accession to the EU since 1January 2007, SB Richard Ellis states.The stable GDP and average monthly salary growth, the constant FDI inflow and the ever decreasing levels of unemployment rate make the country one of the hottest scenes for investment in Europe. The improving economy leads to an increase of the average wage and customers’ purchase power. This results in a higher demand for retail goods and, respectively, high quality retail space.In confirmation, more than 50% of all investments in speculative projects made during the first half of 2007 have been in retail centers, due to the high demand and the possibility for realization of longtermincomes.This results in a strong competition among investors, who are striving to purchase the few remaining suitable plots on key locations that make their schemes more attractive and rentable.Mall projects have also been launched in Bulgaria’s major cities as well: Plovdiv,Varna, Burgass, Russe, Stara Zagora, etc.Nevertheless, considering the fact that Bulgaria has only recently started to develop in terms of high quality speculative retail space, the retail market is still far behind the rest of the CEE countries.Approximately 125,000 sq m of modern retail space were put into operation in 2007, thus making thetotal modern retail space in Sofia over 650,000 sq m.The huge success of the first large-scale retail schemes has already attracted investors’ attention for a long time. As a result, several large-scale retail schemes have already been undertaken in Sofia, while more than ten others are expecting launch in the next few years; some of them have already been issued building permits.Among the largest projects in pipeline are Acropolis Centre, ETC Carrefour, Riofisa Mall, Serdica Centre, Bulgaria Mall, etc.Retail schemes are planned for development in all parts of the city. All these activities make us predict that Malls will take the place of the high streets as traditional retail destinations.Retail space supply cannot meet the demand in Sofia CBD, making tenants orientate towards pedestrianzones, less attractive premises or non-central locations. Considering the contemporary mall shopping fashion and culture among teenage and middle-age customers, demand for retail space in the capital’s largest shopping centers remains high.Fashion brands, banks, and mobile operators are among the most active tenants, all of them interested in high quality and spacious retail premises.Recently transformed into pedestrian, Graf Ignatiev blvd. has become even more attractive to tenants which caused increase in rent levels there.The high rent levels on the major boulevards and the insufficient supply make tenants orientate towards non-central locations and entrance boulevards.As a result, the boulevards surrounding the CBD are becoming more and more popular retail destinations: Vassil Levski, Hristo Botev, Maria Luiza, Madrid, etc.Rent levels for retail space in Sofia kept their high levels since the beginning of 2007, as a result of thehigh demand and low supply of quality premises. Another factor for the high rent levels is the new supply of higher quality retail premises which comes to prove that rent levels in Bulgaria depend on the quality of the premise, instead on the supply – demand ratio.CB Richard Ellis expects this trend to be preserved in the next few years. Rents in Sofia’s shopping centers are in the range of €25 – 60 per sq m per month. On the high streets their amplitude varies widely between €50 – 100 per sq m per month, with an average around €65 per sq m per month.Current yield for prime new retail space is circa 7% in Sofia’s shopping centers. Yields are higher on the high streets, varying around 7.75 – 8.25% depending on the location and the quality of the premise.Sale prices in CBD are usually in the range of €2,000 – 5,000 per sq m. The top quality retail premises asking prices are between €12,000 – 17,000 per sq m. However, despite the fact that there are even higher asking prices, these are single cases which do not correspond to the situation on the market.Retail projects remain one of the most attractive to speculative investors but if new developments keeptheir current rates of growth, this may oversaturate the market with mall-type schemes. At the same time, investors are directing their attention to cities with population below 100,000 people, which is an important indicator for the maturity of Bulgaria’s retail market.Source: Profit.bg

How do we travel to Bulgaria?

2008-05-18T09:29:00.003+03:00

Direct international flights are available to the capital, Sofia, all year round. Direct charter flights to the Black Sea (Varna/Burgas) and Plovdiv are available during the spring/summer months and can be booked through local UK travel agents.

What are the costs of living in Bulgaria?

2008-05-18T09:27:00.002+03:00

It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around €100-200 per year depending on the type of house, together with the belongings and furniture inside. For a property of price €30,000 insurance against theft, flood and fire costs about €125 per year with a decent insurance company like Allianz. Gas: the gas system network is not developed in Bulgaria yet. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around €120. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about €30 monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around €150 per year, but the rest of the country is around €80 per year

How long will it take to buy a property?

2008-05-18T09:23:00.003+03:00

Generally it will take 3 weeks to buy a property. This is dependent on a number of factors, not all of which are in your control. Once you have decided on a property, contact will be made with the seller or his estate agent. The terms and conditions of the sale can be negotiated very quickly, depending on how easily we can instruct an independent surveyor to assess the property, which is our usual practice. It is important to have an accurate picture of the condition of the property, likely repairs that will be needed and its consequent value. Usually a surveyor can prepare a report within a week of instructions. The legal title to the property can be checked at the Land Register in a day or two. Searches with the local authority, trying to confirm the uses and building permissions associated with the property, will similarly take several days. The Preliminary Contract is then exchanged and a deposit paid. There is then a period of, at maximum, a few days while the money transfer is arranged and any final checks made. The sale will take place in front of a Notary at an agreed date and time.

Bulgarian Currency

2007-12-16T22:48:00.001+02:00

Are you wary of having your money changed in a foreign land? Are you visiting Bulgaria for the first time and needs some helpful advice on how to go about changing your money into Bulgarian currency? Read on to get some of these advices that you are looking for...

Turning your Foreign Money into Bulgarian Currency
The Bulgarian currency is the Lev or the Leva, when you say it in plural form. The “Lev” is actually the old Bulgarian term for lion. Bulgaria has a stable economy that largely depends on cash resulting in the value of its currency being tied to the Euro. As of the moment, 1 Bulgarian Lev is estimated to have an exchange rate of 0.6816 US dollars.

If you are a visitor to the country, it is best that you have your money changed in banks or in legitimate change bureaus. You have to know that there are change bureaus that will charge commissions on transactions concerning cash and traveler's checks that are either unclear in its posting or is posted in prints that are very fine. You have to be cautious about people on the streets, who will offer to change your foreign money into Bulgarian currency. Even if they do offer high exchange rates, most of them are out to swindle you into accepting useless bank notes and coins. These people are dubbed as confidence tricksters and they are exceptional when it comes to differentiating those who are just visiting their country from the real Bulgarians. You have to remember always that you must never accept worn out, old or dirty bank notes or bills that are scotch-taped to repair torn areas.

Where to Have Your Foreign Money Changed
If you are visiting Bulgaria for the first time, then it is highly expected that you will come into the country by the way of the airport. To be sure that you are not tricked when it comes to exchanging your foreign money into the Bulgarian currency Lev, have your money exchanged at the change bureau right at the Sofia Airport. There are also a number of legitimate change bureaus located in the store fronts in Bansko town that won't charge a commission when they change your dollars, for example, into Leva.

You can also have your money changed in banks. They operate on the usual banking hours of 9am to 4pm, from Mondays to Fridays, except on holidays. You have to remember though that banks, as well as other stores and change bureaus for that matter, will never change foreign currency that are very dirty, damaged or torn. Other offices that exchange currencies could be found in all the cities of Bulgaria, most of which are open until 5pm while some are open 24 hours a day.

Always keep it in mind to count and examine the Leva given to you in exchange for your foreign money. Make sure that the change bureau that you use in having your money changed, gave you the exact amount of cash as per the exchange rate.

Harmony Residence Bansko

2007-12-12T20:36:00.001+02:00

Harmony Residence Bansko is a residential building situated in a quiet neighbourhood in Bansko offering intimacy and cosiness unlike most of the overbuilt areas in Bansko.. At the same time, the driving distance to the Gondola is less than 5 min by car. Harmony Residence is directly connected to the Gondola by Glazne street which is one of the main roads in Bansko. Harmony Residence offers the perfect solution for permanent residence and holiday vacation in Bansko. It is also a great opportunity for letting for rent.

The building offers high finishing standards at an optimal price.

Location:
100 m from restaurants, shops, entertainment
200 m from town centre
1300 m from ice skating
1500 m from Gondola
5 km from Banya village (spa center)
6 km from Razlog
6 km from Dobrinishte
7 km from Pirin Golf Club
160 km from Sofia

Extras:
restaurant
shop
parking
garages

The location of the residential building offers high potential for letting for long-term rent due to the big flow of service related personnel coming from all over the country, living and working in Bansko.

The building specifications are as follows:
Walls and ceilings – fully furnished
Laminated parquet flooring
Fully fitted shower-rooms with high quality wall tiling, washing basin, WC-monoblock, shower and water-heater, shower cubicle is an option
Different options of cupboards and electrical appliances for the kitchenettes
Interior MDF doors in traditional style
PVC windows, dark mahogany
High-quality armoured entrance door of each apartment
EU standart thermo-insulation
Cable provision for internet and cable TV
Built-in fire-place is an option
Furnishing options (not included in the price)
All-year round maintenance and security
An option for property management

Property Management:

Although there exist several property management companies in Bansko, we will provide property management services for our residential building since we believe that as developers we can provide better care for your apartment than anybody else.

The maintenance fee will be 7 euro/sq.m and includes:

- maintenance and cleaning of all common parts
- accountancy services regarding all common parts and payment of electricity, water, cable TV, internet and other related bills

Additional services can be provided with further charges:
maintenance and repair works for each individual apartment
property management (rentals, cleaning, changing bed linen)
arranging property insurance

CEDAR LODGE

2007-08-25T22:26:00.001+03:00

Cedar Lodge ІV shares the same location and facilities as the highly successful Cedar Lodge III. We are delighted to have secured what we consider to be the best location of any apartment development in Bansko.
Near to the Glazne river and the main lift in Bansko, it represents the closest apartment development to the gondola station. With direct access to the gondola via a pedestrian bridge, the development is a premier property for Bansko. In addition, the excellent on-site facilities make the property highly desirable for all year round rentals.
A number of tour operator deals have already been signed reflecting its excellent rental potential.
This five star rated property combines uncompromising luxury with the most competitive prices on the market and best practice building quality.
The extensive piste and lift system of Bansko are now being complemented by a further 30km of piste. Bansko Resort recently announced an extension to the existing lift and piste system making Bansko even better value for money as a mountain sport destination.
Below are details of the facilities:
* Full size indoor swimming pool

* Jacuzzi

* Sauna

* Steam bath

* Gymnasium

* Ski and ski boot storage area

* Coffee Shop

* Hotel style reception and lounge with open fire

* Lobby bar

* Stunning mountain views (see /bansko-property/Cedar-Lodge-3-Apartments-Phase-2/pictures below)

* 24 hour security (all year around)

* Direct access to adjacent lift complex via pedestrian only bridge over the Glazny river
All the above facilities are provided free of charge to purchasers of apartments.

Mountain Romance Razlog

2007-08-13T10:40:00.001+03:00

BANSKO & PIRIN GOLF COURSE
All SEASON RESORT
Pirin Golf Course is situated 160km south of Sofia in hеart of the Bansko- Razlog Valley.
The new golf course it will be just on 3km distance when the new road, Pirin Golf course- Bansko Gondola station, will be completed.
The Designer of the golf course is the world famous company IMG- GOLF DESIGN and personally world champion of golf IAN WOOSNAM.
The project has started in 2006 and is due to be finished during the Summer 2008.
There are plans for further golf courses nearby which will truly make Bansko a golfing destination.Unlike most resorts in Europe in Bansko you will be able to ski and golf in the same day!
According to the Ski Club of Britain Bansko is the “best developed ski resort in Eastern Europe" and an article recently in the Daily Mail describes it "as the hottest new ski resort on the planet." Igluski.com gives Bansko 17 stars and Val d’Isere 13 stars current as at February 2006. At the moment there are approximately 65km of slopes but there are plans to expand the slopes in the coming years to include over 200km.Bansko enjoys up to 3m of snow cover per year and is reckoned to enjoy the best snow cover in Bulgaria. It has always been the resort of choice for Bulgarians and is the main resort which forms part of Bulgaria’s bid for the Winter Olympics 2014.The lift system in Bansko is the most modern lift system in Europe having opened for service in December 2004. The season is long and lasts from December to early May.
In addition there will also be a horse riding centre, mini football pitch, volleyball and baskeball pitches and two tennis courts in addition to an array of shops and restaurants.Bansko and National Pirin Park attract tourist all year around with the snow peaks, the beautiful lakes and paths for hiking, mounting biking, rock climbing during the summer.
No country in the World has more thermal springs per kilometre than Bulgaria. It has some 500 deposits of mineral waters with over 1, 600 water sources. These are localised chiefly at the mountain foothills. Amongst the spa resorts of national significance are Sandanski and Momin Prohod. The spa towns date back to Thracian and Roman times and are within driving distance of Bansko.
MOUNTAIN ROMANCE II - an exclusive development, situated at the foot of the Pirin Mountains in the Bansko-Razlog Valley beside the site of an 18 hole Golf course and one step away from Europe's most improved ski resort of Bansko.
Mountain Romance is perfectly situated just 200m from the Main Entrance of the Pirin Golf, on the corner of two roads, which guarantee no distraction of the view towards the stunningly designed 'Ian Woosnam' golf course, Pirin Mountain and on the North- Rila Mountain.
The development will consist of spacious Studios and one Bedroom apartments. The apartments are designed as ***** 5 stars luxury according to the standards approved by the Ministry of Economics: size of the room - 20.4sq.m size of the bathroom – 6.00sq.m depth of the balcony – 1.50m, with a size of 4.50sq.m entrance hall – width, including build in wardrobe 1.70sq.m
One will be able to enjoy the spectacular views onto the golf course and mountains, whilst enjoying the industries leading leisure facilities, including Spa Center with swimming pool, fitness centre, sauna, jacuzzi, restaurant, bar, 24 hour room service, 24 hour security. an exceptional combination of Golf, Ski & Spa .
As an investor you can be sure that we will place you in the best possible position to maximize your returns.
The project is for 195 apartments from which:
132 studios with size: from 24sq.m to 42sq.m
63 apartments with size: from 34sq.m to 70sq.m
FEATURES and FASILITIES
● Swimming Pool
● Spa and Wellness Centre
● Sauna
● Steam Room
● Jacuzzi
● Relaxation area
● Massages rooms
● Poolside bar
● Fitness Centre
● Aerobic
● Weights area
● International cuisine Restaurant - internal/external with open barbecue
● Lobby bar
● Internet business centre
● Conference hall
● Reception Area
● 24 Hour Room Service
● Kinder garden
● Billiards pools
● Table tennis
● Property management and Letting services
● Shuttle Bus to Bansko
● Ski and Golf Equipment Storage Facility
● Laundry and dry cleaning Area
● Wifi Internet Access
● Satellite TV Connections
● Fire Alarm System
● Generous Sized Apartments
● Private Terraces
● Underground Parking Spaces
● Elevators
● Secure Entrance/Exit
● 24 Hour Security
INTERIOR DESIGN
Mountain Romance 2
The interior design include two furnishing packages to simplify the purchasing process or you and to achieve the best possible value for money. We have checked to ensure the furniture packages we are offering meet the quality and safety standard set by holiday rental companies operating in this market and are complete in terms of their full Inventory requirement.
● Living room: Flooring - carpet first quality. Walls and ceilings - plaster coating and latex
● Bedrooms: Flooring - carpet first quality. Walls and ceilings - plaster coating and latex
● Kitchen: Flooring - terra-cotta
● Bathrooms: Flooring - terra-cotta and faience the bathrooms and the toilets shall be furnished according to the architectural plan
● Entrance hall: Flooring - terra-cotta. Walls and ceilings - plaster coating and latex
● Balconies - granite, wooden railings, mineral plaster
● Joinery - PVC
● Inside & Outside doors - MDF
● Electric radiators installed in each room
Optional - dishwashing machine, washing machine and air conditioners.
DEVELOPER
The Developer of the project is ITAVA LTD. The company is specialized in design, building and selling the developments in Bansko region.
Their first project, called Mountain Romance I was successfully completed in 2007.The further strategy of the company is to concentrate on the design of Apartments complexes. Relating on the experience they gain over the years, relationship with the clients and the partners, ITAVA LTD created clearly idea of the requirements of European clients and specially of the British, which are the major buyer of real estates in Bansko.

ITAVA LTD is an investment group specialized on developing and investing in the Bulgarian real estate market. The company criteria used in choosing the locations are:
- Prime strategic and perspective location,
- Infrastructure,
- Current and future contingent developments
ARCHITECTURE
The project is being designed exclusively by ORTHOS DESIGN Ltd. which is very successful and professional architectural company in Bulgaria.
Some of the projects that has been successfully completed by the company include the Building company:
Top candidate to build the project is ………………………………………………………………..
…………………………………………………………. is one of the biggest and dynamically developing company whose outstanding track record in the construction industry has made it a preferred business partner and has established its brand name as a symbol of quality, speed and innovation.
Some of the projects that has been successfully completed by the company feature the ……………………………………………………………………………………………………………………………
PRICE AND PROFIT
OFFER
ITAVA LTD offers you to double your money for less than TWO YEAR time. If you wish to start building an apartment complex in Bulgaria we have all you need:
1. Prime location of the plot of land – the best selling point of the apartments, 200m from the main Gate of the Golf course
2.arhitecture plans
3. Permission to build issued by Municipality of Razlog
We have strictly prepared the package of documents and that has taken over a year:
1. buying the land
2. changing the statute of the land from agriculture into land in regulation are ready to build
3. design of the whole the complex according to the requirements of the buyers
4. co- ordinate of the architecture plans with Razlog Municipality and issued the Permission of building
The best of this offer is that the project is ready to start bring you some returns the day after you purchase it, in another words you can start selling . The survey we have made shows that 25% of the apartments are enough to finance and secure the building of the development.
Price for the Designed Project & Land
Build up area 12 000 sq. m

4 000 000 Euro

* please see the attached files with the Price lists of some other developments near by the Golf course. All the projects are OFF Plan and even the Building work has not commenced yet. The expected price for the completed project in that area - min. 2 000 Euro per sq. m.

REASONS TO BUY
Would like to have invested in Spain 20 years ago?

Bulgaria is emerging as a popular year round holiday destination, with beautiful sandy beaches to enjoy in the summer and some of the best skiing conditions on offer in the winter, all this at a lower cost than other European destinations. Accession into the EU will benefit the country immensely, improving roads, strengthening the economy fUrther and also improving living and working conditions. Because of this, Bulgaria is gaining a reputation as a perfect ‘get away' as well as an incredible opportunity for the discerning investor.
● Low Prices - property prices are among the lowest in Europe.
● Lower Cost of Living - considerably cheaper expenses for your everyday cost of living compared to Spain, Greece or Portugal. Cost of living is the lowest in Europe;
● Political Stability and growing economy - political and economic reforms are in progress in a favourable political climate;
● Member of Nato - a recognition of the country’s past efforts as well as a guarantee for its safe future;
● Joining EU in 2007 - persistence in meeting all the requirements has become Bulgaria’s emblem placing the country on the clear path towards 2007 EU membership;
● Healthy Climate and Life-Giving Waters - more than 300 sunny days per year. Average yearly temperature 10.5°C.
● Excellent investment potential - due to the country emerging the way it is in all areas, capital appreciation is high, making excellent returns on investment. Fast developing real estate market, with significant foreign investment
● Extremely Varied Landscape - warm, sunny beaches and cool alpine mountains – just several hours’ drive from each other;
● Easy Access - just over three hours away from most British airports;
● Friendly Atmosphere - bulgarians are warm and hearty people, renowned for their hospitality to foreign visitors;

Mountain Romance Bansko

2007-08-12T20:26:00.001+03:00

We are pleased to offer 28 luxury apartments in The Mountain Romance Hotel for sale as either as investment or fully serviced apartments.
The hotel is located 600 metres east of the gondola lift and a 7 minute walk into Bansko town, each apartment will have either south, east or westerly views towards the beautiful Pirin mountain range and Rila mountain.
The permission for living has been issued for the whole complex and all the apartments are superbly finished and furnished.
● Luxury SPA centre offers to guests of the hotel:
The Spa center combines an incredible variety of relaxation therapies and cosmetics procedures with rehabilitation effect and a favorable influence over the mind, body and spirit.
◊ Jacuzzi ◊ 2 Steam baths, one of them individual ◊ Sauna
◊ Bath tub with a Spa procedures ◊ Relaxation Area
◊ Telasso and Aroma therapy
◊ Massage rooms ◊ Gym
◊ Beauty salon for face treatments
On site facilities:● Restaurant (traditional style tavern with BBQ) ● Reception desk ● Security (24 hours)● Ski and ski boots storage depot ● Laundry services
● Landscaped gardens
● Outdoor children's playground
● Parking plots
● Cable TV with 30 international channels installed ● High speed Internet ● Telephone land line (BTK)● Fire-detectors
● Property and rental management services
● Good Profit potential from 8% to 10% per annum.
Best option for Payment plan:
70% - on signing the Preliminary Contract (within 30 days after the reservation)
30% - within 60 days after the reservation
Properties can be reserved for a non refundable reservation fee of € 2000 (approx £1400). This reservation fee is deducted from the initial payment
Technical details:
All the apartments are luxury finished with the highest quality materials:Warranty- 10 years construction warranty

1. Floors- Wooden floor laminate in the living rooms and in the bedrooms- Terracotta tiles in the bathrooms
- Granite tiles in the kitchen area and in the corridors2. Walls
- 5sm. outer isolations for max. heat protection
3. WC- The bathrooms and WC fully fitted –cubicle, bath tubs and all accessories4. Doors and windows
- Solid doors and four times glazed windows
5. Heating System- Modern individual heating system with radiators, making your ongoing maintenance cost considerably lower, compared to other types heaters.
Options for:
- Fire place in the living rooms - Cable TV with 40 international channels installed - High speed Internet - Telephone landline (BTK)- Fire-detectors

Maintenance of the communal area:
The annual maintenance fee is 8 EURO /without VAT/ per sq.m. and will cover the following:• Maintenance of the garden.• Maintenance, cleaning and electricity bills of the common parts (corridors of the hotel).• Security and looking after the hotel.• Standard repairs occurring from the normal use of the building
Managed Rental Option:
Apartments purchased in The Mountain Romance Hotel can be rented privately through a managed rental scheme operated from the hotel website and reception. This agreement can be signed on an annual basis for the reception to rent the apartments out on behalf of the buyers. As the residence is operating as a hotel, the ‘Hotel’ will rent out the apartment as a hotel room whenever the buyer’s apartment is available, the buyer agrees a schedule with the reception. For this service, the ‘Hotel’ will charge the owner 20% of the gross rental income. Those wishing to rent apartments in the hotel will be able to reserve online and owners of the apartments will be able to check the status of their apartment and confirm which periods it is occupied. It is estimated that the owners will receive a net income of 8-10% of the property price when taking up this managed rental system.

Property Management:
A first class property management service can be provided which includes management and maintenance of all documentation relating to the apartment, organisation of any maintenance required at the property, payment of expenses relating to the property to third-party suppliers: e.g.: bills for power and water supply, cable TV, Internet subscription, cleaning and the general maintenance of the apartment, organisation of the issue of any categorization papers, licenses and similar required by the law for the short-term or long-term rent of the property, filing and submission to the tax office of the annual tax statement and payment of tax due by the apartment owner for income relating to the rental of the apartment and other reception, key and registration services as required by Bulgarian law.

British embassy in Sofia

2007-08-12T20:10:00.001+03:00

BRITISH EMBASSY IN SOFIA

Contact Details:
Address: British Embassy9 Moskovska StreetSofia
Telephone: (359) (2) 933 9222
Facsimile: (359) (2) 933 9219
Chancery(359) (2) 933 9250
Management(359) (2) 933 9289
Defence(359) (2) 933 9279
Commercial(359) (2) 933 9263
Visa/Consular(359) (2) 933 9233
(DfID)(359) (2) 942 4344
British Council
Email: britembcon@mail.orbitel.bgbritembvisa@mail.orbitel.bg - Visa Section
Office Hours: GMT: Mon-Thurs: 0630-1530 Fri: 0630-1100Local Time: Mon-Thurs: 0830-1730 Fri: 0830-1300
Website: http://www.british-embassy.bg/

EMBASSY OF REPUBLIC OF BULGARIA
Contact Details:
186-188 Queen's GateLondon SW7 5HL

Telephone: 0870 060 2350,0870 0602351
Facsimile: 020 7584 4948
Е-mail: info@bulgarianembassy.org.uk - Where possible, please contact the relevant department.
Opening hours: Monday-Friday 09.00 - 18.00
Consular Section Admission Hours: 9.30 - 13.00 hrs, Monday to Friday
(Urgency Admission Hours: 13.00 -14.30 hrs, Monday to Friday until 30 June 2005)24 Hour Automated Booking System: tel. 090 6554 0750
24 Hour Visa Information Service: tel. 090 6550 8950
24 Hour Fax on Demand
Visa Application Form Service: tel. 090 6554 0819
Individual Inquiries on Submitted Applications: tel. 020 7589 3763 (13.00-15.00)
Consular Section Fax: 020 7581 9073
Commercial Section: Monday-Friday 09.00-18.00, fax: 020 7589 4875

Elinor Bansko 3

2007-08-12T18:51:00.001+03:00

Additional info
Three levels building in the north part of Bansko
Distance from the ski-lift: 1000 meters
Distance from the bus station: 200 meters
Distance from the centre of Bansko: 300 meters
On the ground floor three apartments, consisting of a living room, kitchen, bedrooms, bathrooms, verandas. One café-bar and two shops.
On the first floor there are five apartments consisting of a living room, kitchen, bedrooms and bathrooms, balconies and verandas.
On the second floor there are five apartments too consisting of a living room, kitchen, bedrooms and bathrooms, balconies and verandas.
On the terrace-shaped upper floor are three apartments consisting of a living room, kitchen, bedrooms and bathrooms.
Every apartment is with a toilet and bathroom.
Condition at accommodation:
Each apartment is conveyed for sale unfurnished. We are able to recommend companies for kitchen furniture. Everything else is projected as follows:
Living room: Floor –laminated parquet; walls – acrylic paint; ceiling – acrylic paint; windows – laminated PVC;
Bedrooms: Floor – laminated parquet, walls and ceiling – acrylic paint, windows – laminated PVC;
Kitchen: Floor – laminated parquet, walls and ceiling – acrylic paint;
Bathrooms: Floor – terracotta, walls – terracotta tiles up to the ceiling, ceiling – PVC;
Terraces: Floor - terracotta;
Doors: Outside doors of MDF with wooden veneer, secret locks, inside doors with HPL veneer, locks;
cable TV terminal; telephone terminal.

Elinor Bansko 2

2007-08-12T18:26:00.001+03:00

PRICES FROM 700 EURO PER SQ.METER
Additional info
In the north part of Bansko
Distance from the ski-lift: 1000 meters
Distance from the bus station: 200 meters
Distance from the centre of Bansko: 300 meters
Every apartment is with a toilet and bathroom.
Condition at accommodation:
Each apartment is conveyed for sale unfurnished. We are able to recommend companies for kitchen furniture. Everything else is projected as follows:
Living room: Floor – laminated parquet; walls – acrylic paint; ceiling – acrylic paint; windows – laminated PVC;
Bedrooms: Floor – laminated parquet, walls and ceiling – acrylic paint, windows – laminated PVC;
Kitchen: Floor – laminated parquet, walls and ceiling – acrylic paint;
Bathrooms: Floor – terracotta, walls – terracotta tiles up to the ceiling, ceiling – PVC;
Terraces: Floor - terracotta;
Doors: Outside doors of MDF with wooden veneer, secret locks, inside doors with HPL veneer, locks;
cable TV terminal; telephone terminal.

Snow Lodge 2

2007-08-12T14:58:00.001+03:00

THE COMPLEX

Five-star SNOW LODGE II GOLF & SKI RESIDENCE is designed to be a complex and a holiday place – an extension of SNOW LODGE I HOUSING ESTATE. It is situated near ski resort Bansko and the balneology center in the village of Banya, on the international golf playground with 18 holes. The luxury apartment building is designed in the typical architectural style of Bansko and will be built by natural materials such as stone and wood. The Old Bulgarian architectural traditions will be reproduced therein combined with the modern requirements for privacy, easy access and services.
The complex is situated in accordance with the closeness of the mounted and is located next to the entrance of the golf playground. Each apartment has magnificent panoramic view to the awesome peaks, the ski tracks and the golf playground.

THE INVESTMENT AND THE RETURN

What is the size of the investment – 1 038 400 Euro. It is calculated by multiplying the price of 200 Euro/sq. m. from the total built area (200 x 5192).

For this money the investor buys:
· The land plot – 2992 sq. m.
· the architectural plans
· all the documentation for the project including the construction permit

Is the project cheap or expensive – to receive an answer of this question an attention should be paid on the following information:
· The average price of 1 sq. m. of regulated land which is right next to the golf field is approximately 120 – 160 Euro depending on the communications and the technical indicators. This means that if we take an average price of 140 Euro/ sq. m., only the land plot of Snow Lodge II is 140 x 2992 = 418 880 Euro.
· The average price in Bulgaria for an architect fee to prepare an architectural plan is 15 Euro/sq. m. which means that the architectural projects of Snow Lodge II cost 15 x 5192 = 77 880 Euro
· The preparation of all the documents and the time, spent for it, is very hard to be evaluated. Anyway it costs a lot of money.
· All of these things show that at least 496 760 Euro have been spent until now. Without calculating the value of the preparation and time.
· Taking into account the above mentioned, the size of the real investment should be something like 500 000 Euro.
The investment return – here we have two aspects

· HOW FAST – the company has another project, called Snow Lodge I, which is located on the other side of the golf playfield. The parameters of Snow Lodge I and II are very similar, so we can make a practical comparison. The first project has been started before a little bit more then one year and at this moment the finishing touches are executed. This means that similar project could be completed fore one and a half year. In the case of Snow Lodge II the situation is better because the availability of all the documentation which straightly decreases the completion period. An additional and very important information is that all the apartments in Snow Lodge I have been sold for two and a half months!

· HOW MUCH – after a research among the similar properties, the following result has been found – the average price of similar property, along with the furniture is about 1100 – 1400 Euro/sq. m. The price depends on the property location, the exposure, the property’s purpose (apartment or shop), etc. That means, if we take an average price of 1250 Euro/sq. m. and multiply it by the minimum total built area of 5192, we shall calculate the gross profit of 6 490 000 Euro.

The expenses are:
- the initial investment of 1 038 400 Euro;
- the construction costs – in Bulgaria the average price for constructing and furnishing 1 sq. m. of similar property is approximately 550 Euro. This price includes everything. This means that the investor will need the sum of about 550 x 5192 = 2 855 600 Euro to complete the construction.
The net profit calculation:
- gross profit – 6 490 000 Euro;
- initial investment – 1 038 400 Euro
- construction costs – 2 855 600 Euro
- corporate tax – this tax in Bulgaria is 10% (one of the lowest in the world). It is calculated over the sum which is the result of the gross profit minus the expenses (6 490 000 – 1 038 400 – 2 855 600). As seen, the result is 2 596 000. Then we apply the 10% tax which gave us the final size of 259 600 Euro;

The final result is 2 336 400 Euro approximate net profit

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