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

Bulgaria has to renovate all ski facilities in Vitosha said Mark Girardelli before the start of the official season

Mark Girardelli was charmed and in the same time disappointed from ski lifts in Vitosha. The visit of the ski legend in Vitosha is right before to attend to the opening of the ski-season in the most famous Bulgarian ski -resort Bansko. The official start is on 17. December. This morning he gave interview for BNT after short skiing in Vitosha . He was surprised how close is the Bulgarian capitol Sofia to the beautiful Vitosha mountain.
" There is no such opportunity in Europe and probably in the world - only few minutes away from the capital to have the excellent chance for ski sport." But the ski facilities are old and far from the modern opportunities in the other Bulgarian ski resorts - he added. The renovation has to be made as quick as possible, because is inadmissible a country like Bulgaria and a city like Sofia not to use this excellent chance.
"The girls have to be extremly caution with the new ski track in Bansko. " warn he for the upcoming ski race in Bansko for the European championship.
He also , praise the represent ski-alpine racer for Bulgaria Kilian Albreht, for his latest results . He`s strong races are in the difficult tracts the last two were in much easy but we have to be proud of the results and to expect to finish in the first 20 soon.

We hope the promises that made the new owner of “Vitosha ski” for the new ski season that all ski lifts on Vitosha will be available with one lift pass. This is practice in complimentary in all modern alpine resorts in the world and Bulgaria has to follow this example quick.
Mr. Emil Semov, vice president of “Vitosha Ski” promise also that the lift passes will be chip card and that all the 15 km of ski slopes in Vitosha will welcome ski lovers, nearby Sofia with complete comfort of all skiers.
The private company "Vitosha ski" will invest 50o 000 BGN by December next year and will maintain the facilities for next 25 years as a new owner of the ski facilities in Vitosha mountain for the sum for the sum of 8,3 Millions BGN .

As Bulgarians and ski -lovers we hope for perfectly maintained ski slopes for all the ski season this year.

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

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