Property management « BulgariaBoom.com

June 25, 2009

Crisis Hits Bulgaria Real Estate Market

According to Property Wire, the crisis has hit hard the Bulgarian real estate market:

The global economic downturn and poor management of investments have undermined the Bulgarian real estate market in the first half of 2009 with the office segment being the most severely hit, according to a new survey.

The commercial sector has been badly affected by ample supply and flagging demand, says the survey by Foros real estate agency.

Around 20 to 30% of offices across the country are empty. Rental and sale prices have decreased by 12.27% and 7.26% respectively since January.

The residential property market is also suffering. Jones Lang LaSalle has estimated the decline at 12% in Sofia in the last year while real estate agency Address puts it at 16 to 38% in the last six months alone.

Analysts from Foros are predicting sporadic investment activity in the second half of the year. Development projects will be delayed and a recovery is not expected until the economy improves.

However, some analysts see the green shoots of recovery in consumers’ revived interest and restored confidence, as well as in decelerated price downtrends.

Although there is dismay among environmentalists that what they regard as development that impact on areas of importance are still being given planning permission.

They are campaigning against a €2.2 million residential property development near the town of Kavarna in north east Bulgaria. They claim that the July Morning holiday village being developed by Bulgarian Land Development will have a serious impact on a site of natural beauty.

It is part of plans for a much bigger €40 million development that will have 351 homes, a spa centre, restaurants, golf and football pitches and five swimming pools.

Work begins on the €2.2 million first stage next month and it will have 55 apartments. ‘This development will destroy nature. It will also harm the coastline,’ said one group spokesman.

Meanwhile and Irish company, Blackwater Homes, which is currently promoting a 354 apartment complex in the Black Sea coast in Bulgaria, including a spa and a hotel, has filed for bankruptcy protection.

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December 5, 2006

Bulgarian property market (2006)

Filed under: Bulgaria property, Property development, Property for sale, Property management, Property news — Administrator @ 2:56 pm

A few statisctistics for Bulgaria and Romania:

Bulgaria and Romania would register the highest growth in newly build retail property by the end of 2007, a real estate company Cushman & Wakefield report said.
The retail property growth would reach 150 per cent by 2007, the report said as quoted by the Romanian English language daily Nine O’clock.
Trade centres covering a total area of 98 000 sq m will be built in Bulgaria by the end of 2007.
Once Romania enters the European Union, it will become the second biggest retail property market in Central and Eastern Europe after Poland.
Romania plans to construct trade centres of total area of 560 000 sq m.
The countries from Central and Eastern Europe would register the highest growth in retail property supply, the report said.

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July 15, 2006

Record year for UK buyers

Filed under: Investment property, Property management — Administrator @ 8:35 am

According to the National Statistics Agency (Bulgaria), over 11,000 buyers from UK have purchased a property in Bulgaria. The majority of these purchases are apartments on Bulgaria’s Black Sea coast.

The other popular holiday spot for UK buyers is Bansko and the neighboring area. All in all, over 768 Million euro have been invested in real estate according to the agency. Maybe, as prices grow, alternative solutions might spring up, like home share.

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April 18, 2006

Bulgarian wineries – lost and found

Filed under: Bulgaria property, Investment property, Property development, Property management — Administrator @ 2:14 am

Bulgarian Winery Bulgaria’s traditional wine-making goes back to Orpheus time but 50 years of communism have all but destroyed this once thriving industry.

With the ascension to the EU, Bulgarian wineries will once again stand a better chance to compete in the European markets. Not to mention that over 6 billion euros will go from EU coffers to Bulgarian agriculture projects.

The third factor which makes investments in wineries so attractive is the low land costs because there’s no actual market for land. Quite a few foreign (mostly French) companies have purchased huge blocks of land and started their own successful brands.

Bulgarian Winery Here’s a snippet from The Prague Tribune:

Large foreign investments, the purchase of modern technologies, the arrival of young, well-educated specialists and traditionally favorable climate and soil conditions – these are factors that currently favor the formerly undervalued Bulgarian wines. Above all, red Bulgarian wines are scoring big at international wine tastings, and Czech and Moravian wine-lovers are once again returning to Mavrud, Melnik, Gamza and Dimiat…

One example is the Belvedere group which bought several state-owned wineries and transformed them to a modern winery that’s selling wine under the Domain Menada brand throughout Europe.

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