Consumer Credit in RON in Romania Exceeds 10 Bln Euros

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

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

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

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

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

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

Bulgaria Boasts Highest Real Estate Price Growth Globally in Q2

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

Homebuilding in US at 17-year low

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

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.

Housing Prices in Sofia Increase

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

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

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.

Highway to be Build in the Rhodope Mountain

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.

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

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.

Bulgarian pension funds may invest in local water sector

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?

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

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

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.

SPA and Wellness Tourism in Bulgaria to Flourish

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.

Retail Space Rents in Sofia Depend More on Quality Than Demand

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

What are the costs of living in Bulgaria?

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