Realtors: luxury properties not hard to sell

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/

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

Household deposits continue to be biggest resource available to Bulgarian banks

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.

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.

Resort operator Albena '08 revenues to add 10%

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.

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.

Brokers: Market To Start Picking Up Slowly

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.

Romania Ready to Remove Danube Bridge Tolls

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

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.

How do we travel to Bulgaria?

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.

How long will it take to buy a property?

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.