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PROJECT AND INVESTMENTS  |
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17.08.2006 Bulgaria - Country, Property Market, Tourism, European Union Membership and Investment Forecasts |
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Bulgaria - The Country
Bulgaria is considered to be one of the most rapidly advancing nations in Europe today and is renowned for foreign property investment in its coastal and mountain areas. With the average property price having risen by an incredible 31% during the 2004 alone, it is easy to see why investment in Bulgaria is becoming so popular. With excellent property prices and high capital growth projections, combined with Bulgaria’s natural advantages such as sun, sand, sea, skiing, beautiful landscapes and thriving economy, property investors continue to see this Eastern European location as one of the world’s best emerging markets.
Although roughly the same size as England, Bulgaria is at present, a very sparsely populated state, with a population of approx just 7.45 million people. Located in the extreme east of south east Europe, Bulgaria borders Greece, Macedonia, Romania, Serbia, Montenegro and Turkey. Potentially important features for future investors are its eleven “Blue Flag” beaches along its 354km of Black Sea coast, 37,500km of hiking paths, mountain trails and Roman, Greek and Thracian historical attractions, including nine UNESCO (United Nations Educational, Scientific & Cultural Organisation) world heritage sites.
The Property Market In Bulgaria
The Bulgarian property market today continues to grow in accordance with expert forecasts. Property prices in some locations here have been rising by more than 30% per annum – one of the highest rates in the world. In 2006, property prices in Bulgaria range from around £10,000 to £175,000 depending on property type and location, while you can still purchase a comfortable, well renovated property in a good area for approximately £50,000.
In order to take maximum advantage of the Bulgarian market, market trends between each region of Bulgaria need to be understood, eg. supply far outweighs demand in the capital city of Sofia. Capital appreciation here in 2004 was just 5.9%. If you compare this with the town of Silistra on the banks of the River Danube which had capital growth of 36%, and the town of Vratsa with figures of 30%, Sofia offers a less profitable option. It is true that these figures reflect the comparatively low property prices in these towns originally, but supply and demand in these areas are also better balanced. Although these figures are impressive, investors with a buy-to-rent strategy should research their area very thoroughly before purchasing here in order to gain a realistic view on projected returns.
Now that Bulgaria is establishing itself on the foreign property market, it is shifting construction emphasis towards higher quality, exclusive developments. Only projects of the highest quality in terms of design, specification, construction and location are being considered. Permission for construction will be granted only if the developer can highlight a minimal effect to the environment and, indeed, protection of areas of natural beauty is paramount while protection orders have already been placed on National Parks.
Tourism In Bulgaria
The World Tourism Organisation describes Bulgaria as one of the most appealing “new faces” in the tourism industry today, and it is true that this industry in particular has gone from rags to riches over the past 5 years. Figures for 2004 show that 4.6 million tourists visited Bulgaria. However, despite global trends, in 2002 Bulgaria underwent immense tourism growth at 20%, while other countries saw tourist numbers fall drastically.
Bulgaria has benefited from a great increase in international exposure as a desirable holiday destination and this has created an increasingly exclusive market. As with most major tourist destinations, visitor numbers vary seasonally. The summer months see the arrival of over 50% of Bulgaria’s annual tourists, compared with only 14% between January and March. Peak time is considered to be between April and October for the coastal areas, while rentals in the ski resorts peak between December and March.
Statistics gathered by the Bulgarian Ministry for the Economy show that in 2004 Bulgaria attracted a far greater number of visitors from the 15 major EU states. For example, tourists numbers from the UK rocketed by over 62% and Irish visitor figures grew by an astonishing 84%! Despite these great figures, there remains a great growth potential in Bulgarian tourism for the coming years. The government drives forward plans for this growth sector as it currently accounts for some 12% of the Bulgarian GDP. The government examines other successful tourism markets of a similar type and uses their example as a way forward, eg. Austria has a high volume of visitors throughout all seasons to its mountain resorts, a trend which Bulgaria is keen to emulate.
According to studies, during the four year period to 2004, the number of foreign tourists visiting Bulgaria increased by almost 50%, with the number of EU originating visitors growing by nearly 90%. A forecast by the World Trade Organisation indicates that by the year 2010, the number of tourists visiting the country will annually exceed 20 million, making Bulgaria one of the world’s greatest emerging tourism markets. This has obvious positive repercussions for property investors.
Bulgaria - European Union Membership
Bulgaria is set to be the next state to be accepted into the EU, along with its close neighbour Romania. Having fulfilled all the entry criteria as laid out by the EU and with the accession treaty already signed, full membership is expected in 01.01.2007.
As an EU member state, Bulgaria intends to take full advantage of its geographical position in the far east of the European Union, offering greater employment opportunities to its already educated workforce. Bulgaria will utilize the considerable infrastructure and general expertise available within the EU to enhance its own economic development at all levels. Having already benefited from high levels of EU aid prior to its accession, being a full member ensures the continuing flow of aid, aimed at bringing the country’s infrastructure to the same level as other member states. The huge strides that are being made with this aid are already plain to see with, amongst other measures, the construction of a major new highway linking Bulgaria with other member states to the west, north and south.
Most importantly, being an EU member will bring considerable stability to Bulgaria, ensuring it will never again return to the economic mire which it found itself in post-communism. Any remaining weaknesses in its economy will be eradicated and property prices will continue to respond accordingly. Examples of the same trend can be found if you study figures immediately after accession to the EU by countries such as Hungary, Poland, Czech Republic, Cyprus and Malta.
Bulgaria Property Investment Forecasts
Despite excellent growth figures experienced over the past decade, Bulgaria continues offer comparatively low property prices. Other nations in Eastern Europe who are seen as competitors are becoming increasingly expensive, ensuring Bulgaria an ongoing competitive advantage despite rises in property values. It is interesting to note that upon joining the European Union, the cities of Warsaw (Poland), Prague (Czech Republic) and Bratislava (Slovakia) all climbed more than 10 places in the “Mercer Cost of Living” survey. Bulgarian property remains up to 40% lower priced than in these example countries.
Property prices in Bulgaria are increasing and continue to grow at a higher rate in tourist areas than in the rest of the country. The property investment market in Bulgaria is heavily reliant on tourism for creating strong capital growth and high rental yield possibilities in the skiing and coastal resorts. This reliance is reciprocated however, with tourism being reliant on a thriving property industry to cater for demand. These industries are firmly set to continue to grow hand-in-hand.
The most recently identified demand in Bulgaria is for secure, luxury developments. By the end of 2006, Bulgaria will have seen a great increase in purchases from reputable developers for higher quality build constructions.
As a conservative estimate, prices in Bulgaria will continue to increase at around 12% per annum until EU accession in 2007. Following this, experts maintain there will be an additional sharp rise in property values, followed by the leveling out of the market by approximately 2009.
Reasons Why Bulgaria Is An Intelligent Property Investment Location
Early stage of development in Bulgaria, ideal time to invest
Huge tourism growth potential. Increase of 50% between 2000 and 2004 (90% increase from EU visitors)
Tourists expected to exceed 20 million by 2010, making it one of the world’s greatest emerging tourism markets
Stable government committed to economic reform
Strong bid for the 2014 Winter Olympic Games
Large amounts of foreign direct investment
Strong possibility of inclusion in the European Union in 2007 backed by the UK
Excellent property prices that are very low compared to most other European locations
Considered one of the most rapidly advancing countries in Europe
Property construction emphasis on high quality design and build with minimal environmental effect
GDP growth expected to be highest in Eastern Europe (Institute of International Finance) at 6% for 2005/2006
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Investment On Margarita Island Has Never Been Better |
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La Isla Margarita, known as the \"Pearl of the Caribbean\", is situated 38 km north east of the mainland of Venezuela and far from the track of Atlantic tropical storms. Coche Island lies just 8 miles south of Margarita and very easy accessible by boat. The island is marked by different landscapes, with one of its top attractions a shoreline dotted with a variety of wonderful white beaches and clear blue waters for everyone. Margarita and Coche Island do not experience the extreme weather conditions of many other Caribbean islands offering visitors 320 days of sunshine a year. The islands are virtually hurricane free, something that many overlook when considering a move to the Caribbean. Temperatures range from 78ºF (26ºC) in January to 88ºF (31ºC) in September. Night time temperatures are about 4 to 5 degrees cooler.
Coche Island, together with Margarita and Cubagua, form the state of Nueva Esparta which is a tax and duty free zone. There is also no VAT on the island. The purchaser of a property does not pay any taxes on the purchase.
Margarita island boasts many modern shopping centers of an international standard, nightclubs, entertainment centers and an abundance of restaurants.
There are direct flights to The Island from the UK, Holland and Germany. A range of international airlines fly into Caracas, the capital of Venezuela; Margarita is a 35 minute on-ward flight.
Property investment on Margarita Island has never been better. There is a very real prospect of a 100% profit in 24 months, combined with a zero capital gains liability.
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Enjoy beauty, peace and fresh mountain air near Sofia City - Delta Hill – excellent investment |
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We are proud to present the opportunity for investment in one of the most attractive areas in close proximity to Sofia City.
The modern complex “Delta hill” is covering an area of 400 decares located at the foot of Vitosha Natural Park south side at an altitude of 1000 m with over 270 sunny days throughout the year and availing with unique landscape and peace only 13 km away from Sofia. The Complex avails with new modern infrastructure offering all amenities and facilities and preserving environment to the best possible extent. The houses designed and built-up according to elegant architectural style will form a memorable architectural complex in harmony with locality landscape.
The newly established infrastructure of supermarket, shops, kindergartens, offices, playgrounds, luxurious restaurant and bar, 24-hour security and overall maintenance is only several minutes away from the Capital Centre and the Lyulin highway under construction.
Choice among 12 types of one-family two-floor houses covering 180 to 300 square meters and availing with garages and parking lots belonging to the land /300 – 1200 square meters/ and over 30 sunny apartments covering 55 to 175 square meters and providing a fantastic view to Vitosha.
Enjoy beauty, peace and fresh air throughout the year or just go on a picnic in the mountain, go fishing at Stoudena Artificial Lake or choose one of the many picturesque routes to Cherni Vrah Peak during the weekends.
The structure of the houses is monolithic, reinforced concrete, external walls – 25 cm thick red bricks and insulation – 5 cm Fibran. The windows and the doors of terraces – PVC five-chamber window profile, and the internal doors – MDF.
Water supply and sewer installation – PP and PVC pipes, electrical installation – power, weak current and Internet, cable TV, telephone line, lightning conductor, intercom
Individual thermal pump with floor pipe heating within the premises.
Every house shall have fence and metal entrance door.
The prices verify in accordance of the respective plot, the total house area and it’s location.
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A brand new luxury residential complex in Sofia City opened for investitures |
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A new luxury complex, located in the Southern part of Sofia city, in a main road, not far away from the centre, facing Vitosha mountain, that offers a modern solution, combined coziness, functionality and the comfort of the resident environment. The area is ledged and the building shall be constructed as separate objects, offering two types of houses – apartments and studios. The apartments have an entrance hall, living-room with a dining and a kitchenette, one or two bedrooms, bathroom. Every apartment has a nice terrace and has the option to be completed with luxury materials, chosen from a catalogue. The complex has an electric security system and video observation in the underground premises. Restaurant, shops, fitness and SPA center, underground garage. A perfect investment with high rates of refundment.
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Invest in luxury mini-complex, located in a newly developed area south of Sofia’s city centre |
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A new, luxury building, located in a newly developed area south of Sofia`s city centre, very good for investment. This project has been designed as a mini-complex, where some of the apartments look south over the beautiful Vitosha Mountain and the others look into a private garden with a well secured children`s playground. The design provides a contemporary living space with thoughtfully designed rooms and living space. The communal areas and the exterior are similarly well designed with special emphasize on security and landscaping The residents will enjoy a secured and private complex while benefiting from the nearby amenities and services such as a pool, tennis courts and a fitness centre. In the building there will be 50 comfortable apartments in 5 above-ground levels. 3 separate entrances will ensure the privacy of the residents. All floors are accessible by elevator. The finishing works of the common parts shall consist floor-granite / granite-porcelain/ ceramics; walls – indoor gypsum plaster (stucco), latex; ceilings – plain ceilings, latex. Every apartment shall have laminate parquet and granite-porcelain tiles / ceramics floors. Walls - interior gypsum plaster (stucco), glazed ceramic tiles between lower and upper kitchen, flat entrance door; veneer or laminate, fire-proof, multilateral locking mechanism. The kitchens shall be furnished, without electric devices, and the sanitary premises - fully equipped. The interior doors are veneer or laminate, door lock. Windows are from PVC joinery; double-glazed glass. There shall be an electric switches and electric plug sockets; equipped electric switch – board; structural cables for telephone – two telephone plug sockets structural cables for cable TV, structural cables security system purposes – SST. The underground level contains parking places and storage rooms, accessible through staircases and elevators with direct access to the apartments.
Final stage of construction – end of 2007
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TRADE CENTER located on the crossroad between Europe and Asia |
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The property is included in the town of Slivnica planning scheme and it is regulated. Slivnica is a municipal center with established traditions in transportation and manufacturing goods. The project is remarkable for its extremely strategic location: both rail-way and motor transport border with trance-European Corridor N210, near and fast connection with Corridor N28 and a future station of the upcoming modification of Corridor N24.
The unique location offers high attendance from Bulgaria, Romania, Serbia, Macedonia, Greece, but also possible renters from Europe, America and Asia, which has become the biggest manufacturer and exporter in the world due to China and is still looking for new markets. Therefore, such projects in Asia are rather common and considered necessary, than remarkable.
The TRADE CENTER owns the biggest mall in Europe, offers container service by rail-way intermodal terminal, provides storage facilities, customs office, hotel, enough covered and open-air parking lots.
Two major zones for construction of commercial centers have formed around Sofia, also for construction of offices of the famous industrial brands and logistics terminals: the southeastern arc of the Ring road of Sofia and the capital\'s exit to the Serbian frontier – the international road E-80.
The TRADE CENTER project is situated in the second zone. The terrain where the project will be realized, has a private turn-off from the international high-way and is situated 25 km away Sofia\'s center to the west and its southern border is the rail-way Vienna – Belgrade – Sofia - Istanbul.
This project is developed in order to help every business in finding the most proper partners and the clients to feel real market competition. The attendant services along with the necessary human resources will have the possibility to achieve remarkable results, unthinkable in situation of working in a ten time smaller center
This TRADE CENTER will give the chance to every investor, builder, contractor, importer, retailer or end user, to save months of his precious time, discovering thousands of competitive products in just one place. The opportunity to find and compare goods or services in such a short term is the credo of the project.
There are designed enough spaces for car companies, furniture manufacturers, construction materials, industrial goods, foods, clothing, bank offices, insurance offices, investors and contractors, restaurants, clubs, cinemas, conference halls and many more. The companies which will rent the areas will have the opportunity to present their business in a rival atmosphere, to rent storage near their office or showroom, to deliver the goods or service their clients for the shortest time and at lowest price. Companies participation on 2 or 3 day fairs, which take place in different places and time, cost much more than renting a constant area for showroom, office or storage in the TRADE CENTER.
The TRADE CENTER will be built on 165 000 sq.m area, which is owned by a private company, and it has all the possible premises for realization of such a huge project.
The terrain is ordered for industrial constructions, a positive ecological expert report proofs the lack of any obstacles to develop any kind of manufacture, it is not included in zone with ecological restrictions, tests of the soil and the lithosphere show endurance of the designed loads, all kind of communications are available. Wide road and rail-way are prepared for a busy traffic of all kind of vehicles and trains. The close proximity with the municipal center offers easy supply with gas, food and human resources. The access from Sofia by car is quick and safety. The border with Serbia is only 30 km away.
The project contains a few separated objects:
1. MALL - TBA - 465157 sq. m.
Underground floor 1 level - 50000 sq. m. - parking, installations, Hyper - market;
Underground floor 2 level - 50000 sq. m. - parking;
1 floor - 41445 sq.m. - SERVICES;
2 floor - 41445 sq.m. - FURNITURE & DECORATION;
3 floor - 41445 sq.m. - HOTEL FURNITURE;
4 floor - 41445 sq.m. - FLOORINGS, SANITARY WEAR & ACCESSORIES;
5 floor - 41445 sq.m. - BUILDING & CONSTRUCTION COMPANIES & TECHNOLOGIES;
6 floor - 41445 sq.m. - RETAILERS 7 BOUTIQUE SHOPS;
7 floor - 41445 sq.m. - ENTERTAIMENT;
8 floor - 29000 sq.m. - OFFICES;
2. STOREHOUSE & LOGISTICS - TBA - 27643 sq. m.
3. ROLL CO-MODAL TERMINAL
4. HOTEL - TBA - 10700 sq. m.
5. ADMINISTRATION - TBA - 1500 sq. m.
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