The Property Banks Bulgarian Property News
A
new place in the sun, Guardian Unlimited, UK - 9 Jun 2007
As of the end of May Bulgaria is the third largest real estate
destination for British investor's. The Association of International
Property Professionals (AIPP) described the position of Bulgaria as
"phenomenal". Only Spain and France are ahead as the top two markets
for British investments in real estate.
So it has become easier to get either an apartment on the seaside or
a flat in a winter resort like Bansko for example. The market is
still vibrant and even if that brings pressure for the Bulgarians
because of the higher real estate prices there are no complaints so
far.
There are even a growing number of British citizens who have started
living in Bulgaria. The relatively low prices are still the dominant
pusher in the eastern direction. Investing in Bulgarian property
still looks lucrative. Just browse the web or Google "Bulgaria and
real estate" and you will find why it is actually good to have a
country with gorgeous, still relatively well-preserved nature in the
EU. You can actually a buy a house with a really cool view in a
place a where you have fairly cheap daily air travel, too.
When all is good there is no reason for concern or is there? One of
my biggest worries is that we may end up with over developed and
ugly country and seaside. And don't get me wrong, I won't blame it
on the people from the Island who decided to venture some capital in
Bulgaria. What will be main reason is the mixture of desire to make
quick money and the lack of strong control. You can think of Spain
in the late 80s and try to recall what happened there.
The comparison with Spain is not far fetched. One may come to the
sad realisation that in couple of years the sad picture of ugly
buildings nested one over the other can overshadow the bright
scenery you get from your window in Bulgaria. Given the speed of
construction work that is not just a fear, it is a looming danger.
What can put pressure on the local business and authorities are
actually the new owners. There is no doubt that the requirements of
the buyers for what surrounds their property can provide enough
fire. There is doubt this applies to those who are in it only for
the expected profit of a future sale. But if they worry about the
value of their investment then they should also care about what
surrounds their estate. This type of pressure will come from people
who get on the plane and look at what they purchase. I doubt people
who bought a flat on the seaside from the web will care about that.
On the positive side I always recall the situation in Prague. There
the growing number foreign owners did force the prices up but it
also boosted the quality of construction. Let's hope that there will
be balance between the reality of the profit seeking and the rule of
reasonable urban and rural development.
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Bulgarian overseas property market is now ..., Landlord Expert, UK -
7 Jun 2007
Bulgaria might now occupy the third position in the Overseas
Property league table behind Spain and France, but it's the emerging
markets of Latvia, Slovakia, Estonia and Romania where foreign
buyers should now be investing.
Bulgaria might now occupy the third position in the Overseas
Property league table behind Spain and France, but it's the emerging
markets of Latvia, Slovakia, Estonia and Romania where foreign
buyers should now be investing, a property company has claimed.
Other eastern European and Baltic States are all vastly preferable
to Overseas Property investments in Bulgaria, as the country's
property market has now become over-saturated, Property Frontiers
has insisted.
Lesser known eastern European states including Latvia and Slovakia
are now "booming" due to a generation of highly educated and
business-minded local people, the company said
Increased investment in the country by big-name international
corporations including Samsung and Dell has also helped their
economies to grow.
Commenting on the current situation, Simon James, sourcing manager
for Property Frontiers, said: "Bulgaria is well-known because it's
had a lot of press. From an investment perspective I wouldn't put
any money in it at all. Maybe three or four years ago, yes, but the
market has been rallied by unfortunate extreme over-exposure.
"Compare that to Lithuania, Latvia and Estonia," he added.
"They're the strongest growing, they have the highest GDP growth
every year [in Eastern Europe]. Yields are low, but growth is very,
very high."
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BULGARIA MAINTAINS LEADING POSITION IN PROPERTY MARKET ..., Sofia
Echo, Bulgaria - 6 Jun 2007
Bulgaria's capital of Sofia ranks third in property market
attractiveness according to recent research of Global Property Guide
(GPG).
The ranking included 12 European capitals and placed Bratislava and
Istanbul at the first two positions.
GPG compared several factors including prices per sq m, annual
rental income, taxes, transaction costs, GDP and legislation in the
country, investor.bg reported.
EU membership requirements activated a number of reforms in
Bulgaria, research said. The annual gross rental income in Sofia is
10.6 per cent on average.
Average residential prices are still low amounting to 1042 euro per
sq m and the taxes on rental income are within the European levels.
Transaction costs remain too high with average levels between 24.8
per cent and 26.6 per cent.
Slovakia turns out to be the most attractive place for property
investment due to its GDP growth of 8.7 per cent in 2006, high
rental income and low transaction costs.
Legislation changes in Turkey in the end of 2005 made it easier to
purchase real estate in the country. Rental income ranging between
six and 7.6 per cent and steady economic growth placed Turkey second
among most attractive places for property investment.
The ranking goes further to include Romania, Hungary, Moldova and
Ukraine.
In comparison, Baltic countries registered rental income decrease.
Apartment prices in those countries are already reaching the levels
in Copenhagen, Helsinki and Stockholm.
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BULGARIA CONFIRMING ITS POSITION AS IMPORTANT PROPERTY MARKET
SEGMENT, Sofia Echo, Bulgaria - 6 Jun 2007
Bulgaria's participation in the 58th congress of the International
Real Estate Federation FIABCI showed that the country gains
popularity as a serious segment of the international real estate
market.
The forum took place from May 28 to June 2 in Spain’s Barcelona,
Focus news agency reported.
Representatives of the largest companies in the sphere of real
estate, financing and banking institutions took part in the event.
The main subject was finance and information technologies on the
international real estate market.
Among Bulgarian participants featured real estate consultancy
company Home for You. Company's manager Konstantin Bobchev
introduced forum participants to opportunities for Bulgarian real
estate market development and possibilities for real estate projects
funding.
FIABCI was established in 1952. Real estate specialists from more
than 60 countries are members of the federation.
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Bulgaria property investment levels 'are rocketing', Ready2invest,
UK - 1 Jun 2007
New statistics released by the Bulgarian National Bank show that
investment from foreign property buyers operating in Bulgaria has
increased by nearly two-thirds during the first three months of
2007, compared to the same period last year.
Some €310 million (£210 million) worth of property was bought by
overseas investors during the year's first quarter, representing a
63% increase on 2006 levels, the report shows.
The Sofia Echo news paper quotes Prian.ru as saying that in total,
foreign property investment in Bulgaria reached €1.13 billion over
the course of 2006, with this figure set to increase further.
Most of the investors were from the UK, the newspaper notes, with
Greeks, Americans and people from Luxembourg also demonstrating
their affinity to Bulgaria.
This is reflected in recent claims from Quest Bulgaria magazine,
which said that British interest in Bulgaria is at a very high level
- comparable even to France in some parts of the UK.
Chris Goodall, managing director of the magazine, explained: "In
some regions of Britain, notably the north-west, midlands and Wales,
property buyers were even more interested in buying in Bulgaria than
France."
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Bulgaria with “Phenomenal Position in Property Market Popularity
..., international.news.bg, Bulgaria - 31 May 2007
Bulgaria continues to be a magnet for UK property buyers, as a new
report by the Association of International Property Professionals
(AIPP) has revealed.
Describing the position of Bulgaria as "phenomenal" the AIPP table
that ranks the popularity of foreign property markets had the
Eastern European country at third with 7.7 per cent of the market.
This placed it just behind perennial favourites like Spain and
France, which remained as the two top markets.
And Quest Bulgaria's latest issue shows that four in five of
overseas property investors are from the UK, as reported by Real
Estate TV, which revealed that the market is particularly popular
with Britons but not elsewhere in Europe.
The surge in demand has led to warnings that investors expecting
profits from buying and selling property should cool their
expectations, as the Bulgarian real estate market faces oversupply,
dampening future price rises.
Spain, where properties have become more affordable due to a recent
crash in the market, and America, where a weak dollar is still
making real estate a relatively cheap investment, are set to become
more popular in the short term.
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Bulgaria 'is proving to be immensely popular with British property
..., Ready2invest, UK - 30 May 2007
Bulgaria has become a top property investment destination for
Britons over the last few years and by some measures is catching up
with France, according to new claims from a property investment
magazine.
Quest Bulgaria, an English language magazine for Bulgarian property
investment, cited statistics showing that 8 in 10 overseas buyers in
the country originate from the UK or Ireland.
Furthermore, British overseas property investors' passion for
Bulgaria appears to differ between different regions of the UK,
Easier Property reports.
Chris Goodall, managing director of Quest Bulgaria, commented: "In
some regions of Britain, notably the north-west, midlands and Wales,
property buyers were even more interested in buying in Bulgaria than
France."
He concluded by saying that although Bulgaria "may lack some of the
sophistication of France", the low cost but high standard of living
and strong property returns make it an attractive option for many.
Earlier this year, Easier Property reported that increasing numbers
of European and American investors are looking towards Bulgaria for
investment opportunities.
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Irish investors target Bulgaria property, Budapest Business Journal,
Hungary - 29 May 2007
Irish investors made up 1-in-20 of the non-Bulgarians who purchased
property in the EU state in the Q1 of this year, the Irish
Independent writes.
Ireland, Hungary and Spain each accounted for more than 5% of the
money spent by foreigners on real estate buys in Bulgaria. Bulgaria
joined the EU in January, but that had no effect on the market, as
foreigners could buy real estate long before the accession, with the
exception of the land itself. Bulgaria has attracted foreigners for
years with its warm climate, seaside and winter resorts and
relatively low-priced properties, but interest grew into a boom last
year. (focus-fen.ne)
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'Property Tourism' Emerges in Bulgaria, PR-GB.com (press release),
Bulgaria - 29 May 2007
Bulgaria could turn into 'second Baden-Baden' in the several years
to come if it managed to develop its spa tourism, Orlin Vladikov,
head of National Real Property Association said during the sixth
annual tourism conference Bulgaria Dream Area.
Investors were increasingly interested in the purchase and
renovation of old spa centres in 2006. The trend was expected to
continue in 2007 and 2008, Bulgarian news agency BTA reported.
A new type of tourism, property tourism, was emerging in Bulgaria.
Preliminary data showed that the number of property deals in the
country was 280 000 and the transactions were worth more than 10
billion euro in 2006.
Stanislav Novakov, deputy chair of State Agency for Tourism (SAT),
said that tourism became one of the main Bulgarian economic sectors
in the past several years.
Bulgaria's 2006 tourism revenue reached more than two billion euro,
he said as quoted by Focus news agency. Tourism forms 14 per cent of
Bulgaria's GDP and creates nearly 140 000 temporary work places.
Nearly four million tourists visited the country in 2006, he said.
Novakov also said that developing year-round tourism was among
Bulgaria's challenges.
Regional Development and Public Works Minister Assen Gagauzov said
that the ministry would do its best to transform Bulgaria's
infrastructure. Significant investment would be made in resort
infrastructure in the three years to come.
Bulgaria Dream Area is an annual conference dedicated to tourism.
Its 2007 edition will be held on January 10 and 11 2007 under the
topic Rendezvous EU. SEE ministers will discuss the possibilities
for tourism co-operation in the region.
Participants would also discuss the impact of Bulgaria's EU
accession on tourism, the new challenges for Bulgarian tourism and
the development of tourism in the region.
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Property expert issues advice about Bulgarian market, Overseas
Property and Investment News, UK - 21 May 2007
A UK advisory company has issued a buyers' guide to Britons hoping
to invest in the Bulgarian property market.
Westhill Investments' guide includes tips such as checking the
square metres of usable space against the price....
A UK advisory company has issued a buyers' guide to Britons hoping
to invest in the Bulgarian property market.
Westhill Investments' guide includes tips such as checking the
square metres of usable space against the price.
The company also advises investors to inquire about management costs
when buying a new build and urges investors not to make rushed
decisions when it comes to paying deposits or making other payments.
"We want as many people spreading the word that this is a great
country to visit and make an investment," Dominic Hicks, a director
at Westhill.
"Yet we're meeting people who have made the biggest purchase in
their lives, without even visiting the country or seeking
professional, impartial advice."
Westhill, which buys and develops commercial and residential
property as medium-term investments, will be holding a number of
regional Investing in Bulgaria seminars in Manchester, London,
Bristol, Leicester, Edinburgh and Dublin
Bulgaria faces competition 'but shows no sign of flagging', Overseas
Property and Investment News, UK - 7 May 2007
The growth of Bulgaria's property market has been "phenomenal", but
it now faces competition from new emerging markets, according to the
Association of International Property Professionals (AIPP).
Paul Owen, speaking on behalf of the company, said that Bulgaria has
become one of the most popular locations for investment and was the
first market to show such "unbelievable" growth in such a short
space of time.
However, the country now has competition from other emerging markets
such as Poland, Latvia and Montenegro.
"There are a lot of emerging nations with comparable property prices
which are relatively unheard of. Bulgaria has got more competition
in its niche market," he said.
However, the market in Bulgaria could be maturing, with the resale
market likely to "kick off" in the longer term.
"There's a lot of properties being built, there's no doubt that
prices have gone up in the last few years ? properties will be sold
a second time around, the second wave of buyers will come in," he
added.
According to recent AIPP research, Bulgaria is the third most
popular destination for UK property investors.
Bulgaria experiencing phenomenal growth, Property News, 06.05.2007
Britons are flocking to invest in the Bulgarian Property market, the
Association of International Property Professionals (AIPP) has
revealed.
AIPP describe the interest in the eastern European country as
"phenomenal", claiming it is fast becoming one of the most
sought-after locations for Property Investment in the world.
Indeed, a recent survey into the international property market
carried out by AIPP highlighted Bulgaria as the third most popular
destination for UK investors after Spain.
Bulgaria was the first market to demonstrate such "unbelievable"
growth in such a short space of time, AIPP explained, however it is
now experiencing increased competition from other emerging markets
including Poland.
Paul Owen, AIPP's chief executive said: "It's gone from emerging to
almost-established in three years, which is just unbelievable.
"It had a free run of being 'the' emerging market for three years,
but it's now got competition from many others coming in Poland,
Latvia, and Montenegro and there are a lot of emerging nations with
comparable property prices which are relatively unheard of."
He also added that the extent of Bulgaria's success would be
revealed in the resale of homes in a few years' time.
"There's a lot of properties being built, there's no doubt that
prices have gone up in the last few years properties will be sold a
second time around, the second wave of buyers will come in," he
added.
According to the Bulgarian Ministry for the Economy, tourists from
the UK grew by a staggering 62 per cent in 2004, while the World
Trade Organisation predicts that visitors to the country will exceed
20 million by the year 2010.
Bulgaria, US Neck-to-Neck in Race for UK Property Buyers, 4 May
2007, Friday, Sofia News Agency,
Bulgaria is the third most popular country for UK property buyers,
with 7.7% of the market, just edging the US into 4th place on 7.5%,
the Association of International Property Professionals (AIPP) has
revealed.
AIPP described the position of the Eastern European country as
"phenomenal", the only market that has grown to such prominence so
quickly.
"Seeing it sandwiched with Spain and France above and the US below
highlights the level the Bulgarian market has reached," AIPP
explained.
Paul Owen, AIPP's chief executive said: "It's gone from emerging to
almost-established in three years, which is just unbelievable.
"It had a free run of being 'the' emerging market for three years,
but it's now got competition from many others coming in Poland,
Latvia, and Montenegro and there are a lot of emerging nations with
comparable property prices which are relatively unheard of."
He also added that the extent of Bulgaria's success would be
revealed in the resale of homes in a few years' time.
"There's a lot of properties being built, there's no doubt that
prices have gone up in the last few years properties will be sold a
second time around, the second wave of buyers will come in," he
added.
AIPP's 2006 Report shows that Spain and France are still the top two
markets for Britons buying abroad.
Nearly 1/3rd (31.6%) of overseas properties bought by British buyers
in 2006 are in Spain. In second place was the other perennial
favourite France with a little under 1/5th (18.9%) buying just
across the Channel.
Italy ranked fifth with 2.8% of the market.
EU ENTRY MAKES BULGARIA ATTRACTIVE TO SECOND HOME PROPERTY SEEKERS,
12:24 Mon 30 Apr 2007
Foreigners buying property in Bulgaria are aware of local
regulations since in most cases they use the services of Bulgarian
companies that deal with legal issues, representative of Home for
You Ivan Goranov said.
Goranov responded to an article that appeared in Daily Express
saying that a number of British property seekers were cheated in
Bulgaria. Problems occurred since foreigners do not own the land on
which their apartment or house is built.
The Daily Express article is exaggerated, Goranov said. Bulgaria is
turning into a top property investment destination and interest
towards it increases. The country managed to move ahead Spain and
Turkey as an attractive investment destination.
Foreigners, especially British property seekers, know regulations
and use the services of well-known Bulgarian companies that advice
them concerning land ownership and usage, Goranov told Focus news
agency.
Buyers still prefer property in the well-known resorts like Sunny
Beach, St Vlas and Bansko.
EU accession made Bulgaria increasingly attractive to second home
seekers. British and Irish buyers purchase property with the idea to
sell it later on and make profit, Goranov said. Russians invest in
the country because Bulgaria’s EU accession guarantees security, he
said.
RESIDENTIAL PROPERTY PRICES IN BULGARIA UP 22.6 PER CENT IN FIRST
QUARTER OF 2007, 09:47 Tue 24 Apr 2007, Sofia Echo
The average residential property prices in Bulgaria for the first
quarter of 2007 reached 988.2 leva per sq m, data of National
Statistical Institute (NSI) showed.
The price increase is 9.3 per cent compared to figures for the last
quarter of 2006 when the average price reached 904 leva per sq m,
investor.bg reported.
Most expensive apartments in the first quarter of 2007 were offered
in the coastal city of Varna, where the average price reached 1646
leva per sq m, or a 16 per cent increase compared to prices over the
last quarter of 2006.
Sofia ranks first in percentage increase. Prices there reached 1588
leva per sq m, a 14.3 per cent increase followed by Bourgas, having
average price of 1312 leva per sq m.
The highest increase of residential property prices was registered
among the apartments offered in Turgovishte. The average price
increased by 16.3 per cent reaching 810.6 leva per sq m.
Price decrease was registered in none of the Bulgarian towns. The
prices of residential property increased at the lowest rate in Stara
Zagora, by 0.4 per cent.
European Buy-To-Let Profits Soar, Homes Worldwide, 6th April 2007
Poland, Bulgaria and France top chart of the most profitable overseas countries for buy-to-let property investors.
The latest European chart of
the most profitable countries for purchasing buy-to-let properties
has just been released by industry experts Assetz, in the form of
their latest Property Investment Tracker chart.
As expected, due to the opening up of eastern Europe as a holiday
destination, and a market for overseas property expansion, Poland
tops the chart, with a total return on cash invested of 165 per
cent, Bulgaria hitting third place on 54 per cent.
“The growing demand for homes, driven by high immigration and the
forthcoming expansion of the EU to include such countries as
Bulgaria, Poland and Romania, will continue to drive demand for the
buy to let market over the next few years." comments Assetz MD
Stuart Law.
With regard to the high placing of the UK, Mr Law reasons, "As first
time buyers are increasingly priced out of the market, demand for
rental properties is likely to rise, providing a strong basis for
buy to let investment. The overall shortage of homes is set to drive
house prices in the UK up by 8 – 10% in 2007 and 2008, encouraging
investors to take a long term view and benefit from strong capital
gains despite historically low yields.”
Which provides two attractive options for UK home owners who are
looking to invest overseas. Namely, the opportunity to utilise the
equity locked in your UK home for overseas investment purposes,
creating more returns with a buy-to-let property. Or, with a buoyant
UK rental market, why not consider using the equity in your home to
finance the purchase of your overseas dream property - then you can
live in the sun, but enjoy the benefit of ever-increasing house
prices and high rental fees in the UK!
Emerging Real Estate Says Bulgaria is Still a Sound Investment in 2007, MANCHESTER, England, April 3 /PRNewswire/
Bulgaria's property scene has been subject to a meteoric rise over the last few years - fact! A decade ago, the country was seen as a poor, eastern block state riddled with crime and corruption but both international and home-grown developers soon realised its potential, and, thanks to massive investment, Bulgaria is now one of the world's top property hot spots. Many claim the time of quick high returns has passed, but Bulgaria still has a lotto offer investors who are prepared to take a slightly longer term view.
There's no doubt that the success of any country is built on its economy; from tourism to direct foreign investment to employment. Since the fall of the socialist government in 1996, Bulgaria has enjoyed economic stability and strong growth, thanks to sound monetary reforms, responsible fiscal planning and a fixed exchange rate against the Euro - all of which has fuelled the property market. Low inflation and steady progress on the country's infrastructure has also improved its attraction for the international business community with several major blue chip conglomerates opening offices in the country, including; Coca Cola, Intel, Nestle, Citibank and Siemens.
According to the respected CIA Fact book, Bulgaria's GDP has also seen a 6.5% rise which has meant salaries have risen from an average ofEUR4,000 to EUR14,000 per year in the last 3 years alone. The accession to the EU on January 1st 2007 has also been a major milestone, thanks to easier trade links and the EUR4.6 billion which has now been earmarked for Bulgaria between 2007 and 2009.
All of these economic factors are great news for investors, as the country is seeing a sharp year on year increase in the numbers of tourists visiting. According to Amberlambs, an independent online publication featuring expert overseas property investment research, Bulgaria's tourism sector is growing by up to 22% annually and that double digit capital grow this forecast by leading property analysts for the medium term.
Bulgaria also features highly in a number of leading international league tables with Knight Frank placing Bulgaria in equal fifth place in terms of house price growth potential for 2007 for Europe, whilst the Daily Telegraph rated it 8/10 as an investment option. The online travel company 'Opodo' is also predicting that Bulgaria will be the most popular emerging holiday destination for 2007. They report that bookings to the country have risen by 40% in the last six months and they expect a significant further increase.
Whether you are looking for an investment overlooking a golden beach on the Black Sea Coast, a slick city apartment in Sofia or a mountain retreat in the world class skiing resort of Bansko, Bulgaria has it all - as Pelle Langli, chief executive of Emerging Real Estate explained; 'Bulgaria is simply stunning and has something for everyone, from azure seas to souring peaks. The country is in a unique position as it has enjoyed immense growth in a short period of time. However, if you are willing to take a mid to long-term view, of say 5 to 10 years, then the prospects of making a healthy return on your investment look sound.'
All in all, it seems Bulgaria's accessible property market is likely to prove profitable for many years to come.
Bulgaria Property creeps up in Popularity, 16th March 2007, Retire to the Sun
Bulgaria is fast gaining on traditional retirement hotspots France
and Spain in overseas property popularity, according to a new
report.
Foreign exchange firm Moneycorp indicates that increasing numbers of
people are looking to the eastern European country when deciding
where to invest in property abroad.
Of enquiries recorded by the firm into foreign property funds, 12
per cent concerned homes in Bulgaria. This is just behind the 14 per
cent for France - although still some way short of Spain's 30 per
cent.
Many view Bulgaria's Black Sea coast as a good opportunity to retire
to the sun while still being within easy reach of the country's ski
resorts - and the rest of Europe via budget airline connections.
Although Spain and France still dominate, "there are also
increasingly popular countries such as Bulgaria and the United Arab
Emirates, which are providing significant investment opportunities",
Marc Morley-Freer of Moneycorp told This Is Money.
Bulgaria may be catching up on its western European retirement
destination counterparts, but some are still sceptical about the
benefits of investing in property in emerging markets.
Paul Holmes, a spokesperson for Firstrung, said recently that in
some emerging states "it is virtually impossible to remove the hype
from reality when attempting to obtain figures as to the true nature
of house price growth over recent years".
Despite this, others insist that considerable gains are possible
from investment in countries such as Bulgaria.
Capital city Sofia "is an extremely good place to buy at the
moment", Jon Hill of Knight International claimed.
UK Property Buyers as interested in Bulgaria as in France, 16th March 2007, Sofia Echo
The
interest of British property seekers in Bulgarian property steadily
increased over the past three months, This is Money financial
website reported.
Nearly 12 per cent of the inquiries for funds to buy property abroad
came concerning property in Bulgaria as compared to 14 per cent for
France, the report said.
In some regions of Britain, property buyers were even more
interested in Bulgaria than in France. Spain and France, however,
continue to be more attractive for investors with 30 per cent
inquiries for property purchase in Spain.
Bulgaria attracts investors because of purchase opportunities in
Black Sea resorts and ski apartments in the resorts of Bansko and
Pamporovo.
The construction boom in the most popular resorts in Bulgaria
brought up questions concerning the prices of property which
allegedly will decrease due to over-supply.
This is Money reported that inquiries for purchases in UAE ranked
fifth, US third and Bulgaria was on the fourth position.
Bulgaria set for Property Boom in 2007, 1st March 2007, Holiday Lettings.co.uk
New
reports suggest that house prices in Romania and Bulgaria could be
taking off this year, exceeding expectations for housing markets in
Western Europe.
According to Italian property researcher Scenari Immobiliari (SI),
the established markets in Europe can expect a slowdown over the
coming year.
Housing markets in England, France and Italy all saw increases in
turnover of around three per cent, marking a slight decline in last
year's growth rates.
Spain was the best performer in the European market, with a turnover
of 9.5 per cent, a little higher than the eight per cent growth
reported for the 2005 to 2006 year.
However, this rapid growth is set to slow, the experts at SI
predict, but emerging markets in Eastern Europe should see continued
expansion.
Romania, Bulgaria and Russia were all highlighted as having
potential for large increases in house price revenue over the coming
year.
SI attributes the predicted 'out-and-out' boom in Romanian and
Bulgarian property markets to the countries' entry into the European
Union.
British Interest in Bulgaria goes up
Over
the period of one week, two British print media published articles
saying that Bulgaria’s real estate sector was among the most
attractive in Europe.
On February 7, the Guardian reported that Bulgaria, together with
Poland, Estonia and Denmark, was among the European Union countries
with a steady increase in property prices in 2006. The Guardian
quoted a survey done by the Royal Institution of Chartered
Surveyors, which analysed price growth in 26 European countries.
On February 5, the magazine A Place in the Sun reported that
Bulgaria was the third most-popular country for investments in real
estate in Europe. Bulgaria was outranked only by Spain and France.
Well-established locations started to lose their market share at the
expense of new destinations like Bulgaria, Dubai and Cape Verde. In
such untrodden locations, prices for real estate were much lower,
especially given the rising prices and interest rates in Great
Britain, the magazine said. Turkey, Cyprus, Greece and Portugal were
also among the top 10. However, as a result of the oversupply of
real estate in some parts of Bulgaria, prices in this country would
probably remain relatively low, the magazine said.
In view of this, two reports in the news about a 235 million euro
British investment in Bulgaria did not come as a surprise. At the
beginning of the month, Bulgarian Land Development (BLD), a
London-listed Bulgarian property developer, said it would invest in
five residential projects in Bulgaria, worth a total of 235 million
euro. The developments are in the Black Sea resorts Albena and
Sozopol, the winter resorts Pamporovo and Bansko, and Sofia, BLD
managing director Hristo Iliev said.
The Harmony Hills apartment complex near Albena will include 202
apartments. Buyers have reserved 75 of the flats and signed
preliminary contracts for the purchase of 53 flats, evidence of the
interest shown by British clients. Construction on the Harmony Hills
complex is expected to kick off in February and to be completed in
15 months. According to Iliev, all apartments in the Paradise View
complex near Sozopol have been reserved. BLD developments in Sozopol,
Pamporovo and Bansko feature a total of 149 apartments, as BDL
bought the three projects in October 2006 for 6.8 mln euro ($8.8 mln
euro).
The company’s fifth project, BLD Sofia Tower, is a luxury apartment
building where flats are selling at 3000 euro a sq m.
Worldwide
Property Boom Hits Emerging Markets
Europeans are flocking to Croatia and Bulgaria to snap up
Mediterranean villas that are cheaper than what's on offer in Spain.
Americans are going south to Mexico, Costa Rica, Panama, Nicaragua
and Honduras in search of affordable getaways.
The global migration from the developed world has been unleashed by
a number of factors. For starters, there are a lot more wealthy
people in the wealthy countries, and much of this new wealth has
been generated off property.
According to estimates by The Economist magazine, the value of
residential property in developed countries increased by more than
30 trillion dollars from 2001 to 2005, an increase equivalent to 100
per cent of those countries' gross domestic products.
The Economist's dire prediction in 2005 that this property boom is
the world's biggest bubble that is about to kaboom has yet to be
actualized. Instead, the bubble has spread to more remote shores.
"Globally, what's happened now is there are a lot of people not just
buying a second home but finding that investing in real estate makes
money,"
NEW VACATION PROPERTY PROJECTS LAUNCHED IN
BULGARIA
More than four million sq m of vacation property are being
constructed or planned in Bulgaria's resorts.
In Blagoevgrad region, where the resorts of Banko, Razlog and
Dobrinishte are situated, construction of more than a million sq m
of vacation property was planned or launched, Yavlena real estate
agency data show.
The areas to be constructed were two times more than the figures for
2005, 24 Chassa daily said.
Bourgas and Varna regions, where Bulgaria's biggest coastal resorts
are situated, also saw an increase in the vacation areas to be built
upon. The area totaled 200 000 to 300 000 sq m, 24 Chassa said.
Property under construction exceeded many times the supply of
finished real estate in 2006.
The number of property deals in the southern coastal areas increased
by only one per cent, as compared to figures for 2005, and reached
nearly 11 000 in 2006, 24 Chassa said. At the north coast the number
of property deals decreased by three per cent to 13 000.
Mountain resorts registered 4000 property deals in 2006. The
increase is by 30 per cent in comparison to the number of deals in
2005. In Bansko, Razlog and Dobrinishte the increase reached 40 per
cent.
Prices in the resorts started at 400 to 500 euro per sq m and could
reach up to 2000 euro per sq m, depending on location, construction
quality and additional extras, 24 Chassa said. Prices in 2006
remained almost the same as in 2005.
Apartments in complexes near beaches or ski lifts, furnished and
having extras like spa and pools, were the most expensive vacation
properties.
Mladen Mitov from Yavlena said that the property market in 2007 will
be 'calm and reasonable.' Price hikes will be connected to income
increase and would reach 15 to 20 per cent.