Foreigners increasingly interested in BulgariForeigners increasingly interested in Bulgaria’s spa property destinationsa’s spa property destinations

The interest of foreign investors in the acquisition of property located in areas having mineral springs is growing, consultants from Home for You said.
Velingrad, which has already established itself as a spa destination, is growing in popularity. Research shows it is among the top destinations for both foreign and Bulgarian investors.
Agents said that Velingrad had the potential to develop into a European resort and into one of Bulgaria’s best spa resorts.
Foreigners also continue showing interest in vacation property in Bulgaria’s coastal resorts. Mountain vacation property also registers interest, which tends to be strongest towards rural developments.
Italian, Spanish, Austrian and German investors are showing increasing interest in property acquisition in Bulgaria. Scandinavian investors are also growingly attracted to property in the country.

Information Source: Sofia Echo

Property market developments in Bbulgaria unpredictable in first half of 2007

Predictions made for property market developments in the first half of the year failed coming true. The market saw dynamic developments and turned to be one of the fastest evolving segments. Price hike went beyond expectations, making agents unable to predict future growth. In the first half of the year, one and two-bedroom apartments registered the biggest price increase. The growth, however, is specific for each district and average estimations cannot be made. New construction is responsible for the varying trends, especially in Sofia. If a district sees a number of new two-bedroom apartments, owners of older such property try to sell it at prices similar to the ones for newly built apartments. Bulgaria’s bigger cities saw residential property price increase of seven to eight per cent. In general, property located close to the city’s centre gained more in value.

Information Source: Sofia Echo

Pomorie municipality in Bulgaria to develop eco and golf projects

Pomorie municipality plans to carry out a number of eco projects aimed at transforming it into one of the first Bulgarian green regions. The projects will increase the municipality's energy efficiency and improve the road and electricity distribution infrastructure in the region, Pomorie mayor Petar Zlatanov said. One of the major projects envisions the construction of a golf course Black Sea Golf and Country Club. It has already received a first class investment certificate. The investment exceeds 194 million euro. The golf course will cover an area of 1918 decares near the village of Kableshkovo. It will have an entertainment complex functioning year-round. A four or five-star hotel, golf academy, tennis academy and swimming pools, villas and apartments are also included in the project. Work on the project is expected to start by the end of 2007. The complex will provide 800 to 1000 work places. Pomorie municipality currently seeks a public-private partnerships to finance the port in the town. Sunset Resort vacation complex features among the other investment projects in Pomorie. It will have 2700 beds and a five-star hotel complex. Pomorie also will work on several eco projects among which local dump renovation and reconstruction which will be transformed into park.

Information Source: Sofia Echo

Property investment returns rate ranks Bulgaria second in Europe

Bulgaria ranks second in Europe on the returns rate of property investment over the past 12 months, research of British consultancy company Assetz shows.
According to the company’s index, drafted each annual quarter, Bulgaria’s property investment returns reached 71 per cent over the past 12 months.
Poland ranked first with 100 per cent returns.
Assetz warned potential investors that the rate in Bulgaria was expected to decrease significantly.
Regions featuring over supply like Sunny Beach coastal resort and Bansko winter resort already experience problems with their rental markets.
Bulgaria is the only European country listed in the ranking, for which Assetz expects such decrease in returns.
Poland will also experience decrease, though it will be smaller compared to predictions for Bulgaria.

Information Source: Sofia Echo

Real estate fund to invest 200 million euro in Bulgaria's Varna

Investment fund Orchid Development Group will invest nearly 200 million euro in three projects in Varna by the end of 2007.
The fund received a first class investment certificate for its Grand Mall project in Varna.
The other two projects focus on the construction of an office building with a total area of 25 000 sq m and a complex of mixed type having residential part, offices and trade centre. Its gross built-up area will total 60 000 sq m.
Grand Mall will be located near the bus station in Varna. The company bought the terrain in 2006 for 12.7 million euro. Its gross built-up area is 150 000 sq m. Orchid said that this would be the largest complex of mixed type in Varna and among the largest ones in Bulgaria.
Construction works are to be completed by 2009.
Orchid has invested more than 100 million euro in Bulgaria. It owns and manages several Black Sea hotels and currently works on two residential projects in Varna and Sofia.
The company's chief executive Ofer Miretzky said that the investment was worth it because the company bought the terrains three years ago at lower prices.

Information Source: Sofia Echo