News - Archive

03
Sep. 2008 Spanish developer to invest 500M euro in residential property near Sofia The Bulgarian residential property market still has a potential to grow, Nikolina Nikolova, CEO of the Bulgarian arm of Hercesa International, said during a news conference on September 1 2008 at the Hilton Hotel. Nikolova’s statement contradicted the tone set at the general discussion with real estate agency executives, that the market is near saturation.

Nikolova announced plans of the Spanish developer to invest 500 million euro in the building of a gated residential property along the road between Sofia and Pernik. The land plot is within close proximity to the Sofia boroughs of Gorna Banya, Ovcha Koupel and Zapaden Park.

The company intends to build a railway station within the estate compound, which will allow residents to commute easily to either Sofia or Pernik. As of now, there is an existing station where a train passes every half an hour, but the company wishes to shorten the interval to 15 minutes, Nikolova said. She also said that municipality building permission had already been obtained.

Nikolova said that the company had 33 years of experience on the international property market, and what differentiated it from the rest was the quality of its product.
“The most important feature for us is securing an adequate infrastructure, together with a sense of security for our clients,” she said.

Asked about the recent media buzz regarding the property market crisis in Spain and how Hercesa International would gain the trust of its future clients, Nikolova answered that the company was not a typical Spanish investor and developer. She added that, on the board of directors, there were representatives of five major Spanish banks, which, according to Nikolova, meant financial stability.

The project features more than 2000 apartments with a total living area of 240 000 sq m. Prices will vary between 800 and 1100 euro a sq m, Nikolova said, and added that the first building phase should be completed by the end of 2010. Completion of the entire project is expected by 2016.
14
Aug. 2008 Land plots near Sofia still increasing in value The average price of land plots suitable for construction near Sofia has increased between 10 and 15 per cent since the beginning of 2008, Era Izida Properties has said, quoted by website investor.bg.

Despite the abundance of offers, plot prices in nearby villages suitable for building summer houses and homes keep increasing. In the village of Rudartsi, near Sofia, for example, land sells for between 60 and 70 euro a sq m. The villages of Dolni and Gorni Lozen also provoke great interest because of their traditionally cleaner air and mountainous views, the agency said. In that area, as well as in Bankya and Pancharevo, there are several holiday villages at the construction phase.

According to Yavlena real estate agency, demand for land plots on which to build residential property is beginning to subside as investors become more cautious and await market developments. Great interest, however, has been displayed toward areas suitable for the building of warehouses.

Due to high prices investors prefer to come to an agreement with the owner of the land plot, offering them a compensation of several apartments within the planned building, instead of purchasing the land. However, such agreements are rather rare, Yavlena said.

Prices in various areas might drop by 20 per cent, some brokers have said, without specifying the locations.

Mirela real estate agency has said that land plots with water and electricity supply about 15-20 km from Sofia are deemed most desirable by investors. These sell for more than 100 euro a sq m. Agricultural land with the potential to change its purpose runs from 30 to 300 euro a sq m.


01
Aug. 2008 Parliament bans construction on green areas On July 31, Parliament decided to impose a memorandum on construction on existing green areas, parks, playgrounds, sporting fields and areas between residential buildings in regional centres and in towns with populations of more than 50 000.

In the zones allotted for multi-functional facilities, construction without abiding by the development plans that went into effect before the publication of this resolution would not be permitted, Parliament decided.

National Movement for Stability and Progress promised to see to the formation of a working group to go through the law for zoning of territories and to suggest amendments that would resolve the problem with construction on green areas.

The memorandum would be applicable until Parliament voted on the amendments suggested, Dnenvik wrote on its daily news website.

Construction in green areas has increase in the past years, with an increasing number of small parks in the residential complexes disappearing due to the building of business centres or other buildings. In end-June 2008, some 200 people gathered to protest in front of the Mladost neighbourhood municipal hall against the newly detailed master plan for the borough, which envisioned the construction about 150 new apartment and office buildings.

In mid-July, another protest took place, this time in the Krasno Selo neighbourhood, against the construction of a kindergarten in the place of a small park, as The Sofia Echo had previously reported. There were enough kindergartens in Krasno Selo and the new one would destroy one of the few parks in the neighbourhood, protesters said. They feared that the project would be launched as a kindergarten, but would finish up as something else. Protesters even hissed and threw an egg at Sofia mayor Boiko Borissov, who had arrived to turn the first sod of the construction site.


31
Jul. 2008 Italian Co-Ver Industrial to build Tishman and GE’s Sofia Airport Centre Italian company Co-Ver Industrial won the tender for the construction of a business centre near Sofia Airport, Italian news agency Ansa said as quoted by Dnenvik daily.

Investors in the development, Sofia Airport Centre, were Tishman and General Electric Real Estates. The investment was estimated at 250 million Euro.

Tishman launched the construction of the first building of the business centre, Marketing Suit, in August 2007. By the end of 2007, General Electric Real Estate joined the project and shared the investment equally.

The centre would be build in two stages. The first of which should be completed by the end of 2009. The whole project was expected to be finished by 2013, Dnevnik quoted SeeNews agency as saying.

Sofia Airport Centre is planned to spread on 165 000 sq m, 100 000 pf which would be office area. It would also have a luxurious hotel with 250 rooms.


29
Jul. 2008 Holiday resort to be developed in Ribaritsa village A new holiday resort Kostina will be built in the mountain village of Ribaritsa, located near Teteven city, Stroitelstvo gradut weekly reported.

The resort will be situated on a land plot of 5000 sq m, and will feature 13 units of three different sizes for the total investment of 1.5 million euro.

Investor and developer of the project is Tenbul Ltd, whose owner Ivan Marinov has lived and worked in Spain for the past 10 years. Tenbul is the Bulgarian arm of the Spanish company Interbul, also owned by Marinov, which operates in Tenerife Island.

Designer of Kostina village is architect Elena Kavalska, who has designed the proposed houses to vary in dimension from 144 to 189 sq m. The design envisions modern-type developments that will preserve the features of rural style construction and landscaping. Each house will have an adjoining yard of 300 sq m, and future owners will be offered property management, 24-hour surveillance, maintenance and option for letting out.

The construction is planned to start at the end of 2008, and will be completed in two years.

Ribaritsa is a picturesque village situated in the foothills of Stara Planina Mountain, only 138 km northeast of Sofia and because of its climate characteristics, in 1963 was officially proclaimed to be a health-beneficial resort, attracting Bulgarian and foreign tourists.

27
Jul. 2008 Turkish businessman pays 11mln leva for Haskovo business centre Turkish businessman Fuat Guven will be the new owner of Business Centre 1 in Haskovo, Bulgarian news agency BTA said.

Guven was said to pay more than 11 million leva without VAT for the business centre.

The centre was sold on an auction organised by the Haskovo municipality on July 24, local newspaper Haskovo Maritza said.

Guven's company Aida Tour was the only candidate for the property, which has a built-up area of 4177 sq m and a developed built-up area of 10 915 sq m.

The Haskovo municipal council decided on June 27 that the business centre could be sold. The deal would be finalised after an order of mayor Georgi Ivanov will be issued.
24
Jul. 2008 Prices of old residential constructions in Plovdiv double The average price of lodgings in older buildings in the centre of Plovdiv has nearly doubled over the past year, investor.bg quoted Europolis real estate agency as saying.

In the end of June 2008, a sq m in the city centre cost 900 euro, while a year earlier the price was 520 euro.

According to the company, apartments in newly built buildings currently cost 770 to 1000 euro a sq m, but near-future prices of up to 1800 euro per sq m were not improbable.

The price increase for old constructions was a result of the recent development of property market, while newly constructed apartments had become more expensive because of the price increase of construction materials, the company said.

Europolis predicted a slight increase in the prices of property in new developments by the end of the year.
23
Jul. 2008 Residential property prices in Bulgaria continue to rise House prices for the second half of the year are expected to jump between eight and 15 per cent, real estate agency Foros forecast, as quoted by website investor.bg.

For the first six months of 2008, a significant increase has been registered in Rousse, by 24 per cent, which brings the Danube city closer to the price range in Sofia and Varna. In the Bulgarian capital, residential property prices have gone up by nine per cent, while housing in Bourgas has become more expensive by six per cent and by seven per cent in Varna, respectively. In Plovdiv residences are selling for 20 per cent more than the last year, whereas in Veliko Turnovo is close to posting a 13 per cent hike.

Foros also estimated in their forecasts that demand for residential property until the end of 2008 will remain steady as the most popular among buyers are gated and semi–gated residential communities. People, however, prefer to buy in the periphery of the big cities where property prices are still managed low, the agency was quoted as saying.

Two-bedroom flats hold the top of the list for most-desirable residence, but spacious three- and four-bedroom flats are becoming more appealing in recent months, according to Foros. Buying off plan is a tendency that is beginning to significantly decline, the brokers have said.

According to company’s compiled data, at the end of June, Bulgarian residential property offered a return on investment index of close to six per cent, which equals to the average rate in Europe. In Sofia the return rate also comes to six per cent as the highest nine per cent in the country are registered in Veliko Turnovo.

Foros indicated earlier that for the first six months of the year rents are also on the rise as demand is for flats in luxurious new buildings with expensive furnishing.

20
Jul. 2008 Prices of old residential constructions in Plovdiv double The average price of lodgings in older buildings in the centre of Plovdiv has nearly doubled over the past year, investor.bg quoted Europolis real estate agency as saying.

In the end of June 2008, a sq m in the city centre cost 900 euro, while a year earlier the price was 520 euro.

According to the company, apartments in newly built buildings currently cost 770 to 1000 euro a sq m, but near-future prices of up to 1800 euro per sq m were not improbable.

The price increase for old constructions was a result of the recent development of property market, while newly constructed apartments had become more expensive because of the price increase of construction materials, the company said.

Europolis predicted a slight increase in the prices of property in new developments by the end of the year.
17
Jul. 2008 Riu Hotels to run Pravets golf resort hotel International hotel chain Riu Hotels & Resorts will take over at the Pravets Golf & Spa resort in Pravets, north-western Bulgaria, Terra Tour Service, the investor in the project, said.

Riu has signed on to run a hotel with more than 200 rooms in the resort for a period of five years. The 70 million leva complex, which has an 18-hole golf course, among other facilities, has an area of 100 ha and should open for business by the autumn of 2009.

Riu, which tracks its origins to Mallorca in 1953 with a small family hotel, already operates Terra Tour hotels in sea resorts Slunchev Byrag (Sunny Beach) and Zlatni Pyasutsi (Golden Sands) and in coastal city Obzor.