Bulgaria’s Black Sea Airports Report Strong 2011 Results

Posted on January 25, 2012 by Bulgaria Property
GVO

Bulgaria

Bulgaria‘s airports

The airports in the Bulgarian Black Sea cities of Burgas and Varna, which are currently operated by Fraport Twin Star Airport Management, serviced a total of 3 435 152 passengers and 30 478 flights in 2011.
The 2011 figures represent a 10% year-on-year increase in the number of serviced passengers and a 7.3% annual increase in the number of serviced flights.
2011 was the first year for the two Bulgarian coastal airports when Russians were the most active, registering a growth of 12-35%.
In previous years, passengers from Germany held the biggest share.
In 2011, Fraport Twin Star Management AD completed several large-scale investment projects at the two Bulgarians  airports worth over BGN 75 M, including the construction of new buildings, the rehabilitation of the take-off and landing runway at the Varna airport, the improvement of underground infrastructure, the clean-up of the terrain and the launch of the construction of new passenger terminals, etc.

In 2011, the Burgas Airport serviced a total of 2 253 320 passengers, setting an absolute record in the history of the airport.
Russians held the biggest share of serviced passengers at the Burgas Airport.
The airport in the southern Bulgarian Black Sea city processed a total of 393 351 passengers from Russia by the end of 2011, up by 35% from 2010.
German passengers, the second biggest group at the Burgas Airport for 2011, went up by 4% to 371 735.
Visitors from the UK and the Czech Republic ranked third and fourth, respectively.

The Varna Airport reported 1 181 832 serviced passengers in 2011, down by 3.7% from the previous year, and 11 263 serviced flights.
The decrease in the overall number of passengers processed per year was caused by the closure of the airport for the runway rehabilitation which started on October 15, 2011.
Russians made up the largest group of serviced passengers, registering an year-on-year increase of 12% to 286 035.
Germans were the second biggest group of visitors at the Varna Airport.
In 2011, the airport in the northern Bulgarian Black Sea city processed a total of 269 481 passengers from Germany, or 3% more than in 2010.
The third biggest group is that of passengers traveling from and to Poland, whose number rose by 13% from the previous year to a total of 66 584.

2011 year for the both Bulgarians airports

2011 was an important year because it marked the beginning of the construction of new passenger terminals at the two Bulgarians airports and the launch of the project for the rehabilitation of the runway at the Varna Airport.
Fraport Twin Star Management will invest over BGN 170 M in the projects.
The concessionaire of the two Bulgarian Black Sea airports signed the contract for the construction of the two passenger terminals with Turkish consortium TIE-ICDAS on November 15, 2011.

Bulgaria Sees EU’s 2nd Largest Hotel Nights Increase 2011

Bulgaria registered an 18.3% increase in the number of nights spent in its hotels in 2011, the second largest increase among EU member states, according to Eurostat’s latest data.
Bulgaria also saw the largest increase in the number of nights spent in its hotels by non-residents (+19.5%).
The largest increase in the total number of nights spent in hotels was recorded in Lithuania (+19.8%), while Estonia and Latvia observed growths of 14.6% and 14.1% respectively.

These are the last tourists reports for Bulgaria.

Posted in Bulgarian news, International investment news | Leave a comment

Bulgaria Signs Cooperation Agreements with World Bank, EIB

Posted on January 23, 2012 by Bulgaria Property
GVO

BulgariaBulgaria and the World Bank

Bulgaria signed Sunday memorandum for cooperation with the World Bank and the European Investment Bank on consultancy for major infrastructure projects.

Present at the signing were Bulgarian PM Boyko Borisov, EU Funds Minister Tomislav Donchev, as well as World Bank Vice-President for Eastern Europe Philippe Le Houerou, EIB President Wilhelm Molterer, and EU Regional Policy Commissioner Johannes Hahn.

Just before signing the memorandum, Commissioner Hahn met new Bulgarian President Rosen Plevneliev and praised the macro-economic indicators achieved by the cabinet of Bulgarian PM Boyko Borisov.

Bulgaria‘s infrastructure projects

“The memorandum of understanding with the World Bank and EIB will help Bulgaria in the absorption of European funds for the creation of large infrastructure projects,” said Commissioner Hahn.

Bulgarian PM Borisov said that he discussed with Hahn his government’s ideas about the highways and railways that his government plans to construct or repair.

Bulgaria and the European bank

Present at the signing was also European Bank for Reconstruction and Development President Jan Fischer.

A similar memorandum will be sign on Monday between ERDB and Bulgaria.

 

Posted in Bulgarian news, International investment news | Leave a comment

Bulgaria Still in Top Ten on Britons’ Property Map – Overseas Portal

Posted on January 17, 2012 by Bulgaria Property
GVO

BulgariaBulgaria is still preferred real estate market

Bulgaria is keeping its standing among the top ten most preferred real estate markets for overseas buyers, according to a new infographic released by TheMoveChannel.com.
The infographic, which is based upon the enquiries received by the overseas property portal in 2011, showed that 2.7% of all enquiries in December were directed at Bulgarian property, making the country the eighth most popular property destination.

Bulgaria return in top 10 overseas property market for Britons

The news about Britons’ revived interest in Bulgarian property and the country’s return to the overseas property portal’s top ten for the first time in three years broke in the summer last year.
The portal’s director Dan Johnson commented that Bulgaria‘s real estate sales have been improving all year, with buyers attracted by exceptionally low prices for winter property. According to him it was no surprise that interest has increased.
The news however was derided by the Independent, which claimed it has filled some Britons with optimism.
“Perhaps it’s because Bulgaria is outside the eurozone and is relatively cheap that it’s on the way back into favour? But as far as Bulgarian property is concerned I’m reminded of the saying:
He argued that even before the financial crisis of 2008, it was clear that “there was something very positive with buying in Bulgaria“–

Value for money, and  the cheep cost of living make it a great place to spend those long Bulgarian summers

Second home in Bulgaria

Owning a second home abroad was once the preserve of the super-wealthy, but in the past decade a heady combination of TV property shows and cheap mortgages has convinced an estimated half a million Britons to buy their own place in the sun.
The value of UK-owned foreign property investments peaked at GBP 58 B in 2008, up from GBP 10 B in 2000.
Recently however British owners of second homes overseas, including Bulgaria, have been selling up due to falling rental income.

Posted in Bulgarian news, International investment news, Real estate | Tagged | Leave a comment

Sofia Rated 17 in Europe by Investors Real Estate Lure | Bulgarian

Posted on January 9, 2012 by Bulgaria Property
GVO

Bulgarian

Real estate investments in Bulgarian capital

Bulgarian capital – Sofia has been rated 17th by attractiveness for real estate investments, according to a ranking of the British newspaper “Daily Telegraph.”

The information was reported Wednesday by the Bulgarian news agency BGNES and the private TV channel bTV.

The publication lists as advantage for the Bulgarian capital the rent market as lucrative and profitable for investors.

Disadvantages include low profits, high expenses for transactions, moderate tax on rent income, corruption and crime.

Bulgarian Sofia is ahead in the ranking of Prague, Helsinki and even Paris, which is 20th.

However, Brussels is number one. Vienna, Ljubljana, Bratislava, Bucharest, Warsaw, Chisinau, Riga, Rome, Berlin, Tallinn, Zagreb, Istanbul, Skopje and Budapest are all rated higher than Sofia while the Macedonian capital is even second by attractiveness for investors. The Bulgarian capital is actually last among all Balkan ones.

The main sectors of Bulgarian economy

Before the economic crisis, construction was the main sector of Bulgarian economy. A large number of Brits invested in Bulgarian real estate, but when the crisis dimmed their hopes for profits, they started selling and leaving the country. The Brits were replaced by Russians, who buy property used mostly for vacation and secondly – as permanent residence.

Number of Russians with Bulgarian Visa Up 32% in 2011

In 2011, Bulgarian Consular Offices in the Russian Federation had issued 32% more visas, compared to 2010.

The total number of visas in 2011 is 390 882.

The information was reported Wednesday by the press center of the Bulgarian Foreign Affairs Ministry.

The Consular Office in Sankt Petersburg registers a 13% increase in the number of Bulgarian visas, the one in Moscow – 36%.

The number if individual applicants and respectively visas is up 64%.

The increase is attributed to travels to Bulgaria of Russian citizens, who had purchased vacation and residential properties, along with members of their families and friends accompanying them.

In the last 3-4 years, over 200 000 Russians have purchased real estate in Bulgaria,

According to latest estimates these properties are valued at over  1.5 Billion Bulgarian Levs.

 

Posted in Bulgarian news, International investment news, Real estate | Tagged | Comments Off

Foreign Trips to Bulgaria Up 2.4% in Nov 2011 Y/Y

Posted on January 3, 2012 by Bulgaria Property
GVO

Bulgaria

Foreign visitors to Bulgaria up

In November 2011, the number of arrivals of foreign visitors to Bulgaria was 2.4% more than the number of these trips in the corresponding month of 2010.

The total number of foreign visits in November was 384 thousand, according to data of the National Statistics Institute.

The largest increase was registered in the number of visitors to Bulgaria with holiday and recreation purpose – by 6.2%.

In November 2011, the arrivals of visitors from EU Member States rose by 1.4% in comparison with the same month of 2010. The highest growth in the number of visits was observed from France and Italy – by 10.3% and 10.0% respectively. A decrease in the visits was registered from Lithuania – by 10.4%, Slovenia – by 5.5%, Malta – by 5.0%, etc.

Visits of foreigners from the group “Other European countries” increased by 1.3%. The largest growth in the number of arrivals of citizens was observed from Switzerland – by 18.0%, Ukraine – by 13.6%, and Russian Federation – by 9.8%.

In November 2011, visitors passing transit had the greatest share of the total number of foreigners who visited Bulgaria – 34.9%, followed by arrivals with holiday and recreation purpose – 33.2%, professional purpose – 17.1% and others – 14.8%.

The trips of Bulgarian residents

In November 2011, the number of the trips of Bulgarian residents abroad was 253.8 thousand, which was 1.1% more than the number of the trips in November 2010.

An increase in the total number of the trips was registered to: Luxembourg – by 9.1%, Slovenia – by 6.8%, Finland – by 4.5%, Cyprus – by 4.5%, Germany – by 4.3, Spain – by 4.2%, Hungary – by 3.3%, Greece – by 3.2%, and etc.

At the same time a decrease was observed to: Canada – by 29.5%, USA – by 29.0%, Portugal – by 28.7%, Lithuania – by 15.8/%, Switzerland – by 15.5%, Russian Federation – by 14.7%, and etc.

The highest share of the trips of Bulgarian citizens traveling abroad was of those with professional purpose – 49.6%, followed by other purposes (as guest, education, visiting cultural and sport events etc.) – 27.5% and with holiday and recreation – 22.9%.

Bulgaria Ups Flights from Black Sea to Moscow in 2012

Flights from Bulgaria‘s Black Sea airports of Varna and Burgas to the Russian capital Moscow are increasing next summer season.

The agreement was sealed by the Transport Ministries of Bulgaria and Russia.

Since the spring of 2010, there have been seven flights a week on the Varna-Moscow line, which were increased to 14 in the spring of 2011. At the beginning of summer season 2012, flights on each line will go up to 21 a week without restrictions in the number of seats offered per flight, informs Bulgaria‘s Transport Ministry.

According to the Bulgarian Transport Ministry, the increase of flights will lead to the increase of capacity of the Varna-Moscow and Burgas-Moscow lines and improve services for Russian tourists next summer.

The Transport Ministry of the Russian Federation has awarded its Bulgarian counterpart with the order Gold Chariot for strengthening partnership in aviation.

 

Posted in Bulgarian news, International investment news | Tagged , | Comments Off

EU Companies Flock To Bulgaria in 2011

Posted on December 30, 2011 by Bulgaria Property
GVO

European business in Bulgaria

Romanian and Greek companies are moving in droves to Bulgaria lured by less red tape, cheaper labor, lower taxes, Cheaper Land  and  political and economic stability, Bulgarian reports  say.

“Entrepreneurs are shutting down their companies in Romania after deciding to move to neighboring countries or just change their tax registration, attracted by the better conditions in Bulgaria.

The transfer of Romanian small and medium-sized enterprises to Bulgaria, Hungary, Croatia and even Moldova is turning into a mass phenomenon,” writes the Romanian Evenimentul Ziley, citing representatives of local companies.
According to the article the recent increase of the value-added-tax from 19% to 24% in Romania just came to further deteriorate the business climate, already strained by unskilled labor force, high social securities, bureaucracy and heavy indirect taxes.
Data of Bulgaria’s National Revenues Agency confirms the reports.
“Thanks to its low taxes Bulgaria is attractive for both companies and citizens from other countries, especially its neighbors,” the agency spokesman Rossen Bachvarov commented.

Bulgaria Property Is cheapest in Europe

In Greece, the center-left government imposed the increase in VAT from 21% to 23% earlier this year, the second VAT increase this year, following a hike from 19% in March.

Taxes in Bulgaria

Bulgaria has the lowest personal and corporate income tax in the EU at 10%, which was introduced at the beginning of 2008, replacing the previous system, which combined several different tax rates – between 20 and 24%, depending on income.
Bulgaria also has the lowest social security rates, which coupled with a 10% flat rate, makes it very attractive for physical entities, employers and potential investors.
Bulgaria’s Prime Minister Boyko Borisov recently denied reports that a hike in tax rates may be looming after the government scrapped its plans for a VAT increase this year, which was hoped to plug a budget gap that has thwarted the new EU member’s euro efforts.

The taxes in Bulgaria for the 2011 year will still stay the lowest  in all Europe.

This is the last news from the budget for the next year in Bulgaria.

 


Posted in Bulgarian news, International investment news, Real estate | Tagged | Comments Off

Rockefeller Eyes Third Property Deal in Bulgaria

Posted on November 16, 2011 by Bulgaria Property
GVO

BulgariaProperty investments in Bulgaria

Europa Capital, member of the US real estate company Rockefeller Group, announced it is holding talks for a new property acquisition in Bulgaria, its third in the Balkan country.

“We will have a new deal over the next three months. It will be in Sofia,” Chris Bennett, Director-Head of Acquisitions at Europa Capital Emerging fund said at the conference for properties BalREc 2011.

Bennett said the deal price will range between EUR 30-40 M, but refused to disclose the property sector the acquisition belongs to.

Europa capital at Bulgaria‘s market

Europa Capital entered Bulgaria‘s market at the beginning of the year by acquiring Retail Park Plovdiv, Plovdiv, from Landmark Property Management. The transaction volume for the investment was EUR 20 M.

The Mall of Sofia, Bulgaria

In August Europa completed the acquisition of Mall of Sofia, Sofia, Bulgaria, from GE Real Estate and Avestus Capital Partners. This was the fund’s second investment in the country.

The acquisition amounted to a transaction volume in excess of EUR 100 M and was financed by the existing lenders OTP Bank and DSK Bank. Mall of Sofia continued to be managed by Avestus Capital Partners with property management provided by MOS Management.

The real estate fund manager Europa Capital declared its interest in the Bulgarian market as early as in 2007, when it said it is looking at a commercial center in Bulgaria.

After the recession set in, the company was forced to postpone its plans, but in March last year announced its determination to make a comeback in Eastern Europe after an absence of more than two years.

 

Posted in Bulgarian news, International investment news, Real estate | Tagged , | Comments Off

Bulgaria’s Industrial Production up by 1.5% September 2011 Y/Y

Posted on November 8, 2011 by Bulgaria Property
GVO

Bulgaria

Data from Bulgaria‘s statistic

Preliminary data released Monday by the Bulgarian National Statistics Institute, NSI, showed that Bulgaria‘s seasonally adjusted Industrial Production Index was up by 1.0% in September 2011 as compared to August 2011.

In September 2011, Bulgaria‘s working day-adjusted Industrial Production Index rose by 1.5% year on year.

Industrial production index in Bulgaria

In September 2011 as compared to August 2011, the seasonally adjusted Industrial Production Index in Bulgaria‘s mining and quarrying industry increased by 10.2%. Manufacturing increased by 3.7%, while electricity, gas, steam and air conditioning supply decreased by 7.2%.

The most significant increases in manufacturing production were seen in the repair and installation of machinery and equipment – by 40.8%; and in the manufacture of fabricated metal products (except machinery and equipment) – by 14.7%.

On an annual basis, September 2011′s Industrial Production Index, calculated from working day adjusted data in the mining and quarrying industry grew by 7.7%. The index for manufacturing increased by 2.7%, while electricity, gas, steam and air conditioning supply saw a decrease by 5.1%

Increases were registered in the production of investment goods in Bulgaria by 14.1%, in the production of energy by 2.1% and in the production of intermediate goods by 0.4%.

Construction sector in Bulgaria

According to the preliminary data of the NSI, the September 2011 index of production in the construction sector, calculated on the base of seasonally adjusted data, was 0.7% below the level of the previous month.

In September 2011 working day adjusted data showed a decrease by 11.6% in Bulgaria‘s construction production compared to the same month of 2010

 

Posted in Bulgarian news, International investment news, Real estate | Tagged | Comments Off

Korean Firm Mulls Making Electric Cars in Bulgaria’s Varna

Posted on November 7, 2011 by Bulgaria Property
GVO

Bulgaria

Electric cars in Bulgaria

A Korean company is considering investment opportunities for the production of electric cars in Bulgaria‘s Black Sea city of Varna, South Korea’s Ambassador Chun Bi-ho announced.

His Excellency was in Varna Wednesday together with representatives of the Korean Trade Investment Agency (KOTRA).

He explained, as cited by BNR, that the undisclosed Korean firm in question first intends to assemble electric cars in Varna, and would them potentially go for manufacturing their parts their as well.

Chun did not reveal more details about the potential investment in electric cars but announced that Korean firms are involved in talks for potential participation in the concessions of Port Varna, one of the two major Bulgarian Black Sea ports.

Bulgaria Redirects Trade with Greece to Eastern Markets

Bulgaria‘s trade with Greece is in decline due to the economic crisis, Bulgarian Finance Minister Simeon Djankov has told the German Handelsblatt.

Instead, Bulgaria has increased its trading activity with Russia and Ukraine, Djankov clarified.

“Currently, there are 2000 Greek companies that have moved their headquarters to Bulgaria due to the low taxes. Furthermore, as a result of the decrease of some of the Euro zone members’ ratings, retirement pension funds withdrew their investments from Greece, Portugal and Ireland and redirected them to other destinations, including Bulgaria,” Djankov also pointed out.

According to the Finance Minister, Bulgaria has already overcome the worst of the economic the crisis. “Our economy has already started growing and the tax revenues have increased,” he stated.

“However, we are now in a period of uncertainty, since 60% of our foreign trade is with the EU, half of which is with Germany – and since Germany registers a low economic growth, we are also affected. That is why we altered our initial forecast for a 4.1% economic growth in 2012 to 2.9%.” Djankov clarified.

The Bulgarian Finance Minister surprised Handelsblatt’s journalist by revealing that his country’s minimum monthly wage is a mere EUR 135.

“It used to be EUR 120,” he pointed out.

Bulgaria and a Euro zone

Djankov further stated that Bulgaria has covered the criteria for a Euro zone entry for a second year in a row. However, he added that his country should wait at least one more year in order to observe how the debt crises are developing.

 

Posted in Bulgarian news, International investment news | Tagged , , | Comments Off

Bulgaria’s Budget Deficit Down 46% in Q1-Q3 2011

Posted on November 2, 2011 by Bulgaria Property
GVO

Bulgaria

Bulgaria‘s deficit has declined by 46 %

Bulgaria‘s budget deficit has declined by 46% in the first three quarters of 2011 year-on-year, according to latest data of the Finance Ministry.

Thus, in January-September 2011 Bulgaria accrued a deficit of BGN 826 M compared with BGN 1.51 B (a decline of BGN 692 M) in the same period of 2010.

In the first three-quarters of the current year, Bulgaria‘s national budget has accrued a deficit of BGN 483 M, while Bulgaria’s EU transactions deficit (i.e. the country’s contribution to the EU budget minus the absorbed EU funds) amounts to BGN 387.7 M.

In September alone, Bulgaria‘s monthly budget deficit was BGN 94.9 M, which is an increase compared with the BGN 11 M of deficit in August as well as with the BGN 18.9 M surplus in September 2010.

Bulgaria‘s budget income

Bulgaria‘s state budget income as of September 30, 2011, amounted to BGN 18.35 B, or 70.0% of the annual projection, which is a 5.7% increase (BGN 997.7 M more) than the state income for the first nine months of 2010.

The Finance Ministry points out that the growth in state revenues is the result of higher income from indirect taxes, which grew by 12.7%, or BGN 865.1 M, compared with the same period of last year.

Bulgaria‘s tax revenues

Bulgaria‘s total tax revenues, including social security and insurance payments, in the first nine months of 2011 amounted to BGN 15.08 B, or 82.2% of the total state income under the so called Consolidated Fiscal Framework. This is 72.9% of the projection for 2011 compared with 70.6% of the projection reach at the end of September 2010.

Direct tax revenues in the first nine months of 2010 amounted to BGN 2.79 B or 73.6% of the projected sum for 2011.

Indirect tax revenues came at BGN 7.66 B, or 73.7% of the expected amount. VAT income reached BGN 4.70, or 72.6% of the projected sum for the year. Excise tax revenues amounted to BGN 2.85 B, or 75.1% of the projection for 2011. Customs duties have yielded BGN 95.1 M, or 95.1% of the planned earnings for the year. Income from other taxes, including property taxes, amounted to BGN 593.1 M, or 77.3% of the annual projection.

Social security and health insurance payments have reached BGN 4.03 B, or 70.2% of the 2011 projection.

Bulgaria‘s revenues from non-tax sources and foreign aid amounted in the first nine months of 2011 amounted to BGN 3.27 B, or 59.4% of the projected sum.

Bulgaria‘s state spending, including its contribution to the EU budget, reached BGN 19.18 B in January-September 2011, which is 68.1% of the annual projection.

Current non-interest spending came at BGN 16.29 B (72.5% of the projected spending), capital spending, including the net growth of the fiscal reserve, amounted to BGN 1.87 B (50.5% of the projected amount), and interest payments reached BGN 490 M, or 74.1% of the projection for the above-stated period.

As of September 30, Bulgaria‘s contribution to the EU budget for 2011 amounted to BGN 528.1 M, in accordance with Regulation 1150/2000 of the Council of the EU.

 

Posted in Bulgarian news, International investment news | Tagged , , | Comments Off