Why investing properties in Bulgaria

Investing in golf properties in Bulgaria haven't been a likely opportunity for UK investors in the past, but things has changed so we provide an overview of Bulgaria and its culture.

Why invest in properties in Bulgaria?

Bulgaria is a small country rich in ancient culture, scenic beauty and endless charm.

The country is situated in south-eastern Europe and it occupies the central part of the Balkan Peninsula. Its northern border with Romania passes along the Danube and its eastern border is the Black Sea.

One of Bulgaria’s biggest assets about investing in properties is its tourism trade, with stunning coastlines, great golf courses and an incredible mountain range, making the country extremely popular all year round.

Bulgaria also has around 600 natural mineral springs, and the baths and health spas are frequented by locals and scores of international tourists. Although the facilities need to be updated, the spring water in Bulgaria is rich in minerals and flows freely from a natural source.

Bulgaria is a country steeped in history and contains nine UNESCO World Heritage Sites, like the ancient city of Nesebar, which is an eclectic mix of cultures, including Thracian, Greek and Roman, as well as being one of the most important centres of sea-borne trade in the Black Sea.

What is the weather in Bulgaria?

As Bulgaria has such a contrasting landscape, from the snow-capped peaks of the Balkan Mountains, to the sunny Black sea coast, the climate tends to be variable.

In general, the weather in Bulgaria is typically Mediterranean, with hot, dry summers and cool, wet winters, particularly along the coast.

Dan Johnson, Managing Director, comments:

“Bulgaria has preserved its tradition and embraced modern times by brilliantly balancing ancient values with new ideas, making it a country that offers something for everyone.”

BalPex - the bulgarian expo for properties in Bulgaria -opens this week

For a few days the capital of Bulgaria will gather the real estate agencies and Investors in The Bulgarian property market for South-eastern Europe. from 18 April to 20 April in the big expo center are expected some of the biggest real estate agencies and promising investors in the region. This year i the third Balkan exposition for properties -Balkan Property Exhibition -BalPex and the second conference for the experts in Real Estate Market.

The companies which will take part in the expo are about 150. Investors, consultants, architects, brokers, publishers and financial institutions will show the newest property and investment opportunities in Bulgaria and South Europe. The new tendencies in the property market will be available for every visitor, interested in the news about possibilities for buying Bulgarian properties.
The organizers of Balkan Property Exhibition expect more companies and delegates from international companies compared to the last year expo.
The companies and investors will discuss the financial expectations for the next year and the effect of the last year crisis in the Balkan property market. Interesting will be the presented solutions for upcoming structural changes in the region, needed for process of growth.

Interesting fact is the absence of real estate offers at the expo for the rural property market, which was the most wanted among the foreigners in the past years.

The third international exposition for real estate and investment projects in the Balkans will take place in over 4000 sq.m. and will present the biggest commercial, vacantional and industrial projects in Bulgaria. Not only real estate agencies and investment companies will take part in this year BalPex. The visitors will be surprised with companies for real estate managment, financial institutions, banks, law- solicitors , building contractors, media consultants, publishers and so on.
In this year's BalPEx will be presented a wide selection of residential properties in the biggest cities - Varna, Sofia, Plovdiv, Bourgas and many other cities. Interesting vacantional property projects in mountaine and seaside resorts like Bansko, Pamporovo, Borovets, Kavarna, Sunny beach and many more.

Expectations are for large number of business properties and commercial offers like the new shopping Malls in the whole country. Two extraordinary industrial parks will be exposed, one of which is the largest in the Balkans.
The visitors will have the chance for seeing the latest investment projects and property opportunities in Bulgaria and to have a free consultation with some of the most popular real estate experts and financial institutions in Bulgaria. Credit experts will consult the buyers and brokers from real estate agencies will offer the best properties available. The expo will be interesting and for the owners, willing to sell their properties .

Opportunities for rural tourism in Bulgaria

One of the latest opportunities for tourists in Bulgaria is Rural tourism and many of the UK visitors find very attractive to buy one of the cheapest properties in this magnificent places.

Opportunities for rural tourism are offered in a number of villages situated in environmentally clean regions. Usually this small hotels and private homes, are in the mountain regions, near reservats and national nature parks, like in the Rhodopes, Pirin, Rila and Balkan ranges with well preserved old crafts, architecture and rich Bulgarian traditions and folklore. There is a large choice of guest-houses, (from one-star- to 4 star hotels). Many of the offerers include home made traditional meals, eco-tourism in reserved nature parks. This is one of the cheapest way for visiting Bulgaria and the easy way for acquaintance the Bulgarian culture and to feel the Bulgarian hospitality.

You will be surprised from the prices of food and drinks, cheep is also transport, attractions, clothes and many more stocks. But choosing the rural tourism for different kind of vacation, you will find that some of the smallest private houses offering this service will offer you all this thing for free - as a part of the Bulgarian hospitality or as a part of the price -type all inclusive. In the mountines of Bulgaria you cam find properties for less than 5 000 Euro . The small hotels in countryside areas offers a price for one bed room for 5 to 6 Euro per night.

This vacantion will be more pleasant for you than the luxury resorts with expensive prices and aggressive salesmen. Probably you will enjoy this peace and beautiful nature and will want to buy a home for the future vacations or for permanent living.

The price for two floors house in Bulgaria`s countryside is starting from £5000 or even cheaper in some regions like Vidin and Dobrich . Some of the properties are in calm villages - located in a beautiful area close to the sea coast, with a very good road connections. Very close to the local regional center houses or villas are not so cheap, but compares to other countries in Europe are several times lower. The prices of Bulgarian Properties are still increasing and are attractive for all foreign investors and property buyers.

UK customers stoped to invest in Bulgarian resorts

British home buyers have disappeared from Bansko, a leading Bulgarian ski resort and until recently a hot spot for people seeking moderately priced holiday properties.

Since the global credit crunch took hold, purchases by UK investors of Bulgarian properties priced between EUR 45,000 and EUR 90,000 (GBP33,500 - GBP 67,000) have fallen sharply, according to Sofia-based estate agents.

Hugh Fraser, of Sofia-based LS Property, said: "Our research suggests that only about 30 apartments were sold in Bansko last month and the buyers were Russians and Greeks." This compares with sales two years ago of more than 500 properties a month to UK and Irish buyers.

Such a steep decline suggests Bulgaria's holiday home boom, which has focused on Bansko and Sunny Beach, the leading resort on the Black Sea coast, may be over.

Property developers have been offering discounts of 8-12 per cent in buildings nearing completion in Bansko. Meanwhile, prices for new apartments in Sunny Beach have fallen by 7-8 per cent.

"Attitudes have changed. With house prices stagnating, it is much harder for UK customers to release equity to buy a second home," said Rossen Dimov, managing director of Rockarch Estates, a London-based agency selling Bulgarian properties.

Mihail Chobanov, chief executive of Bulgarian Properties, one of the country's biggest estate agencies, believes that about 50 per cent of UK investors who took a punt on the Bulgarian market four years ago are now trying to sell their properties. "Speculative buyers want to cash out and move on," he said.

While tightening credit conditions have given the market a decisive downward push, Bulgaria's appeal for UK investors was already starting to fade.

Rapid development at Bansko and Sunny Beach resulted in an over-supply of lower-priced apartments, putting a severe strain on local infrastructure. An estimated 85 per cent of UK investors bought properties off-plan without having visited Bulgaria.

On arrival in the country many were disappointed by mediocre construction quality and local developers' lack of concern for the environment.

Rental incomes on the Black Sea coast have been lower than expected, according to investors. "Estate agents talked about a six-month season and yearly returns of 6-8 per cent. The reality is more like three months and under 3 per cent," said David, a Dubai-based IT worker who bought at Sunny Beach two years ago. He declined to give his full name.

Two years ago 90 per cent of Rockarch's customers were UK investors, including a sizeable number of expatriates living in the Gulf states. Mr Dimov said the client mix changed last summer, with cash-rich Russians replacing buyers from the UK.

"In the past six months 60 per cent of sales were to Russians, 10 per cent to Greeks and Poles and only 30 per cent to the British," Mr Dimov said.

Julia Titova, of Best Real Estate, a Moscow-based estate agent, said Bulgaria had overtaken Montenegro and Spain as the most popular foreign country for Russians wanting to buy a holiday home.

"Bulgaria is seen as an excellent place for family holidays," Ms Titova said. "It is nearer than the Mediterranean and it is more affordable than the Russian Black Sea resorts."

Information By Kerin Hope and Theodor Troev
Financial Times

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

Sofia starts work on Big Air snowboard World Cup event for Christmas

Sofia's city hall began working on the ramp for next week's Big Air snowboard World Cup event in the downtown of the Bulgarian capital.

The ramp in the Battenberg Square in Sofia downtown will be 100 by 32 by 20 meters and will weigh 600 tonnes, together with the snow, when complete.

The location of the event has heated spirits in Sofia, with councillors from two rightist parties asking that the event be moved to another location, where it would not disrupt traffic on one of the city's key boulevards.

Despite the city hall dismissed the fears of more congestion in the city, saying construction works will not have a major impact on traffic through downtown, nor can it move the timing of the event, scheduled for December 22.

"We can't move the event, so it is not around Christmas, as politicians have asked us. The international calendar of events has been announced long ago and we have to stick to it," the chairman of Bulgaria's ski federation Tseko Minev said.
"The TV time for it has been booked already. It's an honour for us to be the host of such an event, together with such big European capitals as Moscow, Berlin or Copenhagen," he added.
The snowboard lovers will be entertained in Sofia for live show or they could see the show on BNT.
Source ; www.novinite.com

Risks for the owners of properties in Bulgaria

Dozens of people become victim of the so called real estate mafia in Bulgaria every year, losing their properties in their desperate need to get money cash as soon as possible. But the results are shocking - the owners pawn flats or houses, whose value is set at hundreds of thousands Euro to receive some half of this sum immediately. Besides such "services" are at a high rate of interests.

Of course, everybody, who takes such a risk, hopes he is to get his property back right after he pays off his debts. But often that is not the case... At least not in Bulgaria...

Police probes proved that some owners of pawnbroker's have up to 15 properties registered in their names. Contracts however show that these flats have actually been pawned and according to the law they should not be transferred to the "brokers".

Suspicious foreign jobbing-houses, taxi drivers, change bureaus or Bulgarian nationals, who work abroad often play the roles of such "brokers". They even use forged documents to sell to ordinary people mortgaged properties.

Only 500 out of about 1400 jobbing-houses are legally working. The rest perform such activities without paying any taxes or insurances to their employees.

In most of the cases, police authorities and prosecutors could do nothing to help the situation when a fraud is uncovered as the cheats enforce their rights through misleading contracts, signed by the victims themselves. There follow endless lawsuits, which take no effect. Meanwhile the properties are sold to one or more other buyers.

The scheme that works flawlessly on this "market" is as follows: a cheat takes on a flat in a big residential building in the capital city of Sofia and pays in advance the rent for the next few months without signing a contract, which contains his personal data. In a while, an advertisement is published in the press, saying the flat concerned is for sale as the price is extremely low. The sell of course is to be carried out without the help of an estate agent. The false "owner" receives 10% of the property's value as a deposit from each of the candidate-buyers and nobody is able to find him anymore.

The other way of committing such frauds is to take on a real estate property, prepay the rent for the following few months without signing any official papers, taking the notarial act from the owner, making a copy, which is later used for "letting out" the house to other people.

Every year Bulgarian authorities are being tipped off on more than 20 cases of frauds related to sales and purchases of real estate properties, Economy police Inspector Gratsiela Petrunova announced recently.

"There are several organized rings that commit such crimes in the country," the official added.

Economy police experts found out that notaries are often involved in such crime schemes.

The criminals usually get the personal data of the potential victims in advance, authorities reported.
by "Darik Radio", Nikolay Hristov

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

Bulgaria with “Phenomenal” Position in Property Market Popularity Ranking

Bulgaria continues to be a magnet for UK property buyers, as a new report by the Association of International Property Professionals (AIPP) has revealed.

Describing the position of Bulgaria as "phenomenal" the AIPP table that ranks the popularity of foreign property markets had the Eastern European country at third with 7.7 per cent of the market.
This placed it just behind perennial favourites like Spain and France, which remained as the two top markets.
And Quest Bulgaria's latest issue shows that four in five of overseas property investors are from the UK, as reported by Real Estate TV, which revealed that the market is particularly popular with Britons but not elsewhere in Europe.
The surge in demand has led to warnings that investors expecting profits from buying and selling property should cool their expectations, as the Bulgarian real estate market faces oversupply, dampening future price rises.
Spain, where properties have become more affordable due to a recent crash in the market, and America, where a weak dollar is still making real estate a relatively cheap investment, are set to become more popular in the short term.

Information Source: News.bg

Price of residential construction projects in Bulgaria to increase

The price of residential construction projects will increase on the average by 2 to 3 euro per sq m this autumn.

Design and planning of office property will cost 20 to 30 per cent more than work on residential projects, chamber of architects representative Dimitar Mladenov said.

Mladenov took part in a discussion on the problems of the architecture and construction sectors.

New ways to calculate the cost of planning and design services will be introduced in September. Changes are needed to guarantee price uniformity and quality of the product.

In the autumn, the chamber will also publish a list of all companies operating in the sector. Bulgarian design and architecture companies will be able in this way to accept projects from abroad.

Information Source: Sofia Echo

Bulgaria maintauns leading position in property market attractiveness ranking

Bulgaria's capital of Sofia ranks third in property market attractiveness according to recent research of Global Property Guide (GPG).

The ranking included 12 European capitals and placed Bratislava and Istanbul at the first two positions.

GPG compared several factors including prices per sq m, annual rental income, taxes, transaction costs, GDP and legislation in the country.

EU membership requirements activated a number of reforms in Bulgaria, research said. The annual gross rental income in Sofia is 10.6 per cent on average.

Average residential prices are still low amounting to 1042 euro per sq m and the taxes on rental income are within the European levels.

Transaction costs remain too high with average levels between 24.8 per cent and 26.6 per cent.

Slovakia turns out to be the most attractive place for property investment due to its GDP growth of 8.7 per cent in 2006, high rental income and low transaction costs.

Legislation changes in Turkey in the end of 2005 made it easier to purchase real estate in the country. Rental income ranging between six and 7.6 per cent and steady economic growth placed Turkey second among most attractive places for property investment.

The ranking goes further to include Romania, Hungary, Moldova and Ukraine.

In comparison, Baltic countries registered rental income decrease. Apartment prices in those countries are already reaching the levels in Copenhagen, Helsinki and Stockholm.

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

OFFICE PROPERTY RENTS IN TOP 50 HIGHEST WORLDWIDE

The office rents in Sofia rank as the 49th highest worldwide, research of consultancy company CB Richard Ellis (CBRE) shows.

Annual office rent expenditure in Sofia reached $517.3 per sq m, or $43.1 per sq m per month.

London keeps its first place in the chart. Office rents in some of its most expensive parts reach $2596.5 on annual basis. Tokyo takes the next positions in the chart.

The chart’s top 10 remain almost unchanged. Delhi is a newcomer among the 10 most expensive office property destinations, ranking seventh.

Moscow, Paris, Dublin and Dubai also feature in the top 10.

Athens and Warsaw are the other two East European cities apart from Sofia to rank among the most expensive 50 office destinations. Athens ranks 36th and Warsaw occupies the 48th position.

About Bulgarian properties in summer season

Over the past few years, property supply has exceeded demand in Bulgaria’s leading resorts.

The vacation property market is reaching its saturation point and a number of resorts already suffer from over-construction and the lack of proper infrastructure, participants in the first Balkan real estate conference BalRec said.

In order to attract new clients, resorts should start offering unique projects and better infrastructure condition.

Vacation property developments in Bulgaria are more prominent than those located in neighbouring counties, conference participants said.

Colliers International data for 2006 shows that the number of vacation properties in Bulgaria’s coastal area increased 82% to reach 35 000 units. The biggest increase was registered in the regions of Kavarna and Balchik.

Romania and Serbia are currently trying to establish themselves as attractive tourism destinations in order to also develop the vacation property market.

At the same time, the quality of vacation property projects in Bulgaria varies greatly. Buyers now have higher demands, which also presupposed higher construction quality.

Vacation property prices in Bulgaria vary from 800 to 1600 euro per sq m. Colliers predicts similar levels or a slight increase in the future.

Investors in Bulgaria’s coastal regions are failing to find buyers for their newly-built hotels.

Nearly 30 new hotels were offered for sale over the past year, 24 Chassa daily reported. Only 250 hotels were on sale in southern coastal regions. The hotels are being sold in all stages of construction.

The average price is 856 euro a sq m.

Most of the hotels for sale were in the resorts of Sveti Vlas (St Vlas), Slunchev Bryag (Sunny Beach) and Chernomorets.

Experts said that there was a lack of buyers in these resorts, because the most tourists there were foreigners, who preferred buying apartments in complexes, instead of staying in hotels.

The biggest demand for hotels was in Slunchev Bryag, Nessebar and Primorsko was said in press.

To the north, the highest supply of hotels is in Zlatni Pyasutsi (Golden Sands) resort. Average prices were 1000 euro a sq m.

Demand was biggest in Zlatni Pyasutsi, Sveti Konstantin and Slunchev Den (Sunny Day).

Information Source: Sofia Echo

What is this?

This is start of this blog.

What will be appear here:
- news and useful information about real estate business most for Bulgaria
- news about our website www.BulgarianPropertySale.com, services and etc.

Enjoy :)