Category Archives: Real estate

Bulgaria Expects 20% Increase in Russian Tourists 2012

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Bulgaria

Tourism and Property business in Bulgaria 2012

Bulgaria expects to see an approximately 20% increase in Russian tourists this year, according to the country’s Minister of Economy, Energy and Tourism, Delyan Dobrev.

Dobrev pointed out that Russian tourists with Schengen visas can now visit Bulgaria, which would boost the Bulgarian tourism sector.

“We expect a significant growth, especially on the Russian market,” the Minister said.

Tourism is likely the sole economic sector in Bulgaria that is growing in times of crisis, Dobrev observed.

“Over the past several years, we have seen growths between 5% and 8%. I hope we would have a similar growth this year,” Dobrev declared in the city of Veliko Tranovo, when the international Cultural Tourism fair is taking place.

On Saturday, the Economy Minister also stated that Bulgaria will back the South Gas Corridor project. He explained that the project would bring about both higher energy safety and diversification.

Bulgaria Named Cheapest Tourist Destination for Brits

Bulgaria is the least expensive tourist destination for Britons, the cost index from Post Office Travel Money has revealed.

A basket of 10 typical holiday items – including lager, sun-cream and a three-course meal – costing just GBP 42.79 in the Balkan country, 4% less than last year.

The second least-expensive destination was Turkey where the items at the resort of Marmaris cost GBP 54.22 – a decrease by 22% compared with 2011 prices. The third place goes to Portugal (GBP 56.46.)

The pound is currently stronger than many rival currencies and Britons will receive as much as 14 per cent more cash for their summer 2012 trips to Europe compared with last year, according to the survey.

“Resort prices and currency exchange rates are always changing, so it is worth doing some research to check the latest position before booking a holiday. It is also worth considering how you plan to spend your holiday cash,” Post Office Travel Money head Andrew Brown has commented, as cited by The Daily Mail.

Brown has explained that the index includes the price of one meal and big cost differences may emerge if one decides to eat out every night.

“For example, according to our research, eating out for seven nights in either Bulgaria or Portugal will cost less than £175 but over £280 in Spain, France or Malta,” he has said.

Property Prices in Bulgaria Expected to Stabilize in 2012

Bulgarian property prices are largely expected to be unchanged in 2012 as real estate markets around the country remain at a standstill, brokers say.

Average prices in the capital city Sofia were around EUR 735 per square meter during the first quarter of the year, from EUR 730 in the last quarter of 2011, according to Bulgarian Properties real estate agency.

The agency says this is a sign of the market stabilization even though the decline in residential property prices in Bulgaria is still visible. The extent of the decline is shown by figures which reveal that at the beginning of last year prices were 11% higher than now – about EUR 830 per square meter.

Brokers expect that the number of transactions in 2012 would remain at similar levels as has been seen over the last year.

The agency does not expect a significant decline in prices and transactions during the traditionally strong spring season, although the country’s economic environment remains highly uncertain.

Brokers say that prices in major cities were relatively stable, but because of the decline in demand, prices had fallen in Bulgaria.

 

EUR 120 M ‘Sofia Ring Mall’ to Be Completed July 2013

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Sofia

Sofia‘s largest shopping center

The future Sofia Ring Mall – which is to become Bulgaria’s largest retail and entertainment destination together with the closely located store of IKEA Bulgaria – is to be completed by July 2013.

The EUR 120 M shopping center will provide to its customers views towards the city and Vitosha Mountain and a lot of green areas.

This has been announced at a news conference in the Bulgarian capital Tuesday featuring representatives of the two Greek investors Fourlis Group and Danaos Group as well as the project consultants Colliers International.

They have pointed out that the expansion of Sofia ring road, which is scheduled for the fall of 2012, will provide safe and easy access for the some 1.5 million residents of Sofia.

Sofia Ring Mall will be competed 2013

Sofia Ring Mall is scheduled to be completed by July 2013 and its opening is planned for the fall 2013.

It will feature a tenant mix of over 200 stores, including fashion and sport stores, entertainment facilities, a 10-screen cinema multiplex. More than 25 000 sq meters of gross leas-able area are slated to anchor tenants and more than 20 000 sq meters to fashion brands. In total Sofia Ring Mall will have 69 000 square meters of gross leas-able area, and 172 000 square meters of gross building area on 3 retail floors.

One of the biggest advantages of Sofia Ring Mall is that it’s a unique cluster of “big box” operators working in synergy with a classical “shopping mall” mix, making it and all-in-one offer catering all needs of visitors, the investors say.

The total investment of the project, including the land and the infrastructure which involves green spaces and assisting roads on the side, is exceeding 120 million EUR.

Some of the tenants that have already made contracts for retail space at the Sofia Ring Mall include Piccadilly; Yavor Furniture; Mr.Bricolage; Cine’Grand; Technomarket; Public.

Strategic advantages of Sofia Ring Mall

During the presentation of the project Liberis Moschovitis, General Manager of Sofia Ring Mall, highlighted the regional character of the development and the new experience that will be offered to the visitors.

He noted that “the new retail destination in Sofia has been created to provide the important tenants mix, especially with the combination with IKEA making it a new retail destination in the country.”

“One of the strategic advantages of Sofia Ring Mall is its strategic location, convenient and easy access. Moreover, the successful concept “all under one roof” makes the classic shopping in the city very special experience among the big open spaces, a lot of green area and entertainment places”, said Iglika Yordanova, manager “Commercial area” in Colliers International.

Sofia South Ring Mall EAD, a joint stock company owned by two major investors Fourlis Group & Danaos Group, is a company, active in the investment, lease and management of the commercial center Sofia Ring Mall.

Top Brands, New Formats Stir Bulgaria’s Retail Market

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Bulgaria

Colliers International for Bulgaria

A few major retail openings and flexibility in formats have signaled the first signs of recovery on Bulgaria‘s retail market, according to a survey by Colliers International.

IKEA in Bulgaria

The opening of furniture giant IKEA, which took place in September 2011, has stimulated the competition in this segment, being a major determining factor for the price and product policy of many operators on the market, the report says.

New supply is dominated by three schemes under construction – Sofia Ring Mall, Paradise Center and Bulgaria Mall. Cumulatively, those three projects will deliver to the market in Sofia in 2012/2013 approximately 180,000 sq. m.

Colliers experts comment that each of the new projects is trying to add new features and points of attraction that will add “flavor” to the traditional retail functions of a shopping mall, such as variety of leisure amenities, amusement parks, synergies with retail giants.

The Food retails in Bulgaria

There is a considerable demand for retail space in central and residential areas on streets with high pedestrian and/or vehicle traffic. This demand comes mostly from the food retailers, which continue their expansion mainly through convenience formats.

The fashion segment in Bulgaria

The fashion segment was stirred by the expected opening of H&M, stores in Bulgaria in the first half of 2012.

“The entry of one of the long-awaited brands in Bulgaria is a proof, that the international fashion brands see a good prospect for development on the market,” Colliers report comments.

The retailer has already secured locations in prime shopping malls in Sofia, Varna and Burgas and is expected to grow the number of stores in some of the main cities.

During 2011 several international retailers entered the Bulgarian market – the British brand Peacocks, Patrizia Pepe, Pimkie, Calvin Klein, Quiz – all of them through local or regional franchisees.

The average vacancy level in Bulgaria during the second half of 2011 in the shopping malls in Sofia is around 6%. This represents a slight increase from the first half of 2011, when the average vacancy level was around 4%. The Mall, Serdika Center and Mall of Sofia enjoyed stability with a vacancy level in the range of 2-3%, while the rest of the operational malls faced higher vacancy in some cases reaching a double digit rate (Sky City Centre).

Rental levels in shopping centers and malls in Bulgaria remained relatively stable during the second half of 2011. They vary depending on the type of retail facility and location. In large shopping centers in Sofia the rents are approximately EUR 32 /sqm/, while in the shopping centers in secondary cities the rents are between EUR 20-22/ sqm/ month.

 

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

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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.

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

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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.

 

EU Companies Flock To Bulgaria in 2012

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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 said that  that another cut  in tax rates would come later in 2012 in the form of a VAT Tax cut,  the government scrapped its plans for a VAT increase , as it would be counter productive  .

So the Vat Cut  togeather with the 10% tax rate means taxes in Bulgaria for the 2012 year will be the lowest  in all Europe.

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

 


Rockefeller Eyes Third Property Deal in Bulgaria

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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.

 

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

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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

 

Bulgaria’s Bansko Named World’s Best Value Ski Resort

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Bansko

Bansko the cheapest ski resort in the world

Bansko, Bulgaria‘s biggest ski resort, is the cheapest resort for British skiers in the world, according to new research by the Post Office.

While last year Bansko ranked second, preceded by Romania’s Poiana Brasov, now Bansko has emerged as the most attractive winter resort for Britons on a budget since prices have fallen by 5% in comparison with 2010.

Ski resort report 2011 for Bansko

The total cost for ski equipment, lift passes, ski tuition, drinks and an evening meal for two came in at £263 which was still £100 cheaper than at the runner-up resort of Arinsal in Andorra, whose prices have also fallen by 5%, according to the Ski Resort Report 2011, carried out by Post Office Travel Money in association with Crystal Ski.

In third place, making its first entry into the list, came Slovenia’s emerging resort Bohinj.

“Skiers on a budget have great value resorts to choose from if they head east to Bulgaria and Slovenia or west to Andorra. Italy is also looking good for those skiers who prefer skiing in one of the long-established favorites,” head of Post Office Travel Money, Sarah Munro, commented.

Bansko – the winter capital of the Balkans

Last year Bansko was named the winter capital on the Balkans at an international tourism exhibition in the Serbian town of Novi Sad.

Bansko is a little town bordering Pirin National Park, about 160 kilometers south of Bulgaria‘s capital Sofia, offers a stark but nice contrast between the cobbled streets and churches of the old town and hundreds of millions of euros poured into hotels, ski runs and bright blue gondola bubbles in its modern part.

Supervising all this is the roughly 2,800-meter Todorka peak.

The formerly off-the-beaten-path destination has recently gone mainstream, but it is very rarely that tourists see the vistas doom-sayers warn against – construction cranes and gaudy mutrobaroque hotels, favored by the nouveau riche and organized crime mobsters, known as mutri, with which they try to prove their wealth.

Tourists need to spend no more than 25 euros a night in those hotels, which exemplify Bansko‘s ambitions best – quite chic, but without the ridiculous attempts to be cosmopolitan often found at Bulgarian resorts.

The old town of Bansko, where the prices are lower even than the capital Sofia, is a collection of ski and souvenir shops with cozy, dimly lit taverns and restaurants. It is not unusual to see an entire lamb or pig roasting on a spit in front of one of the eateries.

The alternatives are the pubs in Bansko, frequented by British, Irish and Greek tourists, who, together with the Russians, have until recently been the driving force of Bansko‘s prosperity.

Critics say Bansko was built to meet the standards of not that wealthy tourists, who do not bring lots of money to the country. As the global crisis bit, however, the number of these tourists, who out of fears for their jobs, decided to skip the holidays altogether, drastically decreased.

The long-term attraction will be limited, unless what is on offer complies with the highest standards, say the critics of Bansko.

 

Sofia Airport Center Showcased at Intl Facility Management Forum

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SofiaSofia Airport Center

Sofia Airport Center, the largest business and logistics parks in Bulgaria has been presented at the Sixth Annual International Facility Management Conference in Sofia by its investors, Tishman International Companies and GE Real Estate.

The Sofia Airport Center Property Manager Nikola Ignatoff presented the home of Bulgaria’s first LEED-certified commercial office building, as a member of a distinguished panel focusing on the economic advantages of green development entitled “Sustainability as a Strategic Instrument.”

International Facility Management Conference in Sofia

The panel took place during part of the conference that was themed “Sustainability: Green Economics”. The Sixth Annual International Facility Management Conference itself was held October 13-14, 2011 at the Holiday Inn Hotel in Bulgaria’s capital Sofia.

“Tishman International is proud to share the strategies we employed to make the Sofia Airport Centeran outstanding example of the benefits of sustainable development,” said Alan D. Levy, Chairman of Tishman International. “The facility managers who attended the international conference are especially interested in how green development can lower their operating costs and, at the same time, provide a healthier environment for employees and the larger community,” he added. “We feel it is vitally important to promote sustainable development locally, regionally and globally.”

With the Sofia Airport Center as a model, Ignatoff highlighted the environmental and financial benefits to facility managers, developers, architects, engineers, consultants and real estate investors of green building and LEED certification. These advantages include lower operating costs; increased asset value; the reduction of waste sent to landfills; the conservation of energy and water; and the reduction of harmful greenhouse gas emissions.

What offers the  Sofia Airport Center

The Sofia Airport Center offers 165,000 square meters of high-tech commercial space, including Class A offices and prime logistics space with state-of-the-art security and safety systems, amidst a lush landscape with a central lake, green areas and winter gardens. An international hotel with dining, recreational, and conference facilities is also planned for future development at the Sofia Airport Center.

Tishman International Companies is currently active in the United States, United Kingdom and Central & Eastern Europe including Bulgaria (Sofia), Hungary, Czech Republic, Slovakia and Romania. The firm specializes, in the acquisition, development, management and financing of commercial real estate.

GE Real Estate currently has over EUR 1 B invested in Central and Eastern Europe. The Company has invested or developed in the retail, office, residential and logistics sectors in the Czech Republic, Poland, Slovakia, Bulgaria, Hungary and Romania. The Company made its first investment in Turkey in 2006.

The Sofia Airport Center is the company latest investment in Sofia.