Bulgaria property investments with record growth for 2007

Bulgaria property investment has proven to be the country's economic driver with a record-breaking turnover of €11.36 billion in 2007.

As the world's strongest property market in 2007, Bulgaria property investment has made a huge €2.36 billion increase on 2006 figures, and is successfully keeping up the momentum for 2008.

Many local and international property experts predicted the year's increase to reach 25% to 30% however by September the market had actually risen by 32% with many major cities, such as Sofia, already recorded impressive growth this year.

The huge property price rise has been largely attributed to a good mortgage market, high annual revenue of properties and the weak impact of the world financial crisis in Bulgaria. The Bulgarian financial market has not been impacted by US sub-prime crisis due to no cross-border banking, with consumer borrowing continuing at a steady growth rate.

UK property investors, who accounted for 40% of all Bulgaria property investment in 2007, followed closely by Russia occupying 38% of the market have played a primary role in maintaining excellent market conditions, whilst further strengthening the country's financial stability and adding to the robust appeal for Bulgaria property investment.

Nikolin Gavrailov President of the Bulgarian Entrepreneurial Chamber in Building reported the turnover for the construction industry as €5.6 million adding, "The (previous) lack of modern apartments, retail, and administrative buildings caused the construction boom. The investment growth in tourism, production, and the need for modern infrastructure also stimulated construction. Construction sector growth is expected to be between 12% and 16% year on year until 2010."

Alongside such strong growth in Bulgaria property investment, the economy has experienced sustained growth with The Economist forecasting a consistent 6.4% GDP growth year on year. Bulgarian emigrant workers are investing back into the country in particular retail and housing sectors, also boosting the Bulgarian economy.

According to preliminary figures from the World Bank, remittances from Bulgarians working abroad will amount to €1.26 billion in 2007. However, the Bulgarian National Bank have stated the actual figure to be closer to €2 billion or 7% of the gross domestic product.

In a bid to ensure a consistent flow of foreign direct investment (FDI), the Bulgarian government has made bold changes to the Bulgarian tax system. The new system will mean that both income and corporate tax will be charged at a very low 10%. This new flat rate applies to all workers, investors, and companies regardless of income or profit values, making Bulgaria a very tax efficient place to relocate or invest in.

From July 2008, budget airline Wizz Air will be the first operator to offer cheap internal travel from the capital city to the coast of Bulgaria. The low cost airline will operate four domestic flights per week between Sofia and Varna, and will expand flight frequency to the UK, Italy, Germany Spain, and Turkey.

Despite such rapid price growth, Bulgarian property investment remains very competitive and highly profitable in comparison with other European markets, giving the country a long-term profitable investment edge.

Information by : Obelisk

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

Polish company to invest 90milion leva in mall construction in Bulgaria's Varna

Polish company Globe Trade Centre (GTC) will provide funding for nearly 95 per cent of the construction of Gallery Varna mall.
Investment will total 89 million leva.
This is the fourth mall project to be launched in the coastal city of Varna since the beginning of 2007.
The project is still awaiting construction permit. Construction works will be finalised by the end of 2009.
Annual rental income is expected to reach 9.5 million leva.
This is the first GTC project in Bulgaria. The company already has several trade centres in Romania. It plans to construct two more trade centres in other big Bulgarian cities.
GTC announced that in 2006, it acquired a 4500 sq m plot in Sofia, worth 1.55 million euro.

Information Source: Sofia Echo

Resorts in Bulgaria to see residential property construlcion boom

Most of the apartments to be constructed in Bulgaria will be located near the country’s biggest resorts.
Residential property projects totaling 1.77 million sq m in area received construction permits in the first three months of 2007.
National Statistical Institute (NSI) data showed that 75 per cent of these apartments will be located in the regions of Bourgas, Varna and Dobrich at the seaside and near the mountain resorts of Bansko, Razlog, Pamporovo and Borovets.
Nearly 20 per cent of all apartments to be constructed will be located in the Bourgas region.
Between January and April 2007, Dobrich municipality issued nearly 41 per cent more construction permits that during the entire 2006.
Apartments to be constructed in the Varna region doubled as compared to figures for the same period in 2006.

InformaSource: Sofia Echo

Prices of new apartments in Bulgaria's Bourgas Decrease, hike registered in Sofia

Average prices of new apartments in some regions of Bulgaria’s coastal town of Bourgas went down in May.
Apartment prices in the centre of Bourgas decreased by four per cent to 1050 euro per sq m and by six per cent in the regions near the centre compared to April figures.
Prices in the regions near Bourgas remained unchanged. Prices in Sarafovo varied between 700 and 750 euro per sq m, in Sozopol , 1100 euro per sq m , Primorsko registered price of 850 euro per sq m.
Varna registered no changes in its apartment prices. Apartments in the centre of Varna vary in price from 1000 to 1300 euro per sq m.
New panel and brick construction in Sofia became more expensive. Average prices went up by 1.63 per cent compared to April costs. Some residential district in Sofia showed no change in prices.
Beli Brezi, Mladost 1A and Geo Milev feature among residential districts that registered the highest price increase in May.
The average apartment price in the centre of Sofia increased by 1.94 per cent reaching 1050 euro per sq m.

Source : Sofia Echo