News and Info for investment

[Jain and Chris]

As we all know, apart from the normal "location, location, location" one of the other things which can affect desicions for investment and the investment potential are important things happening around the area.

This thread is being started to give news on important things which are happening in areas of Bulgaria to help with 'where to buy'.

To start the ball rolling, here is today's news:
Pleven
The central Bulgarian town of Pleven will soon a sport a new western european style shopping centre after the reconstruction of the former town bank building is finished.

"Central Mall Pleven" will cost almost EUR 9,2 M and will be built by Niya Ltd, a construction and investment company.

The mall will have a total of 11,000 sq.m built-up area, 7,000 of which will be used for shops.

The mall will also have a two-level cinema, bank, restaurants, fast food outlets, cafeterias and a large children's playground.

The mall is scheduled to open for visitors in September 2008.

Niya Ltd is a Pleven company dealing with construction works and investment projects.


More news as it comes in...

 

[diga]

New gondola in Bansko

Does anyone know if or when the new gondola in Bansko is to be built? I know the municipal have earmarked the land running alongside the ski road on the right(looking up) of the old gondola before the Glazne river. It hadn't started when I was there in April supposed to be completed by 2008. Chances are slim!

 

[Jain and Chris]

A very interesting observation about the Black Sea coast and one which I personally would agree with - Varna should aim for upmarket tourists and investors.


The volatility of the local tourism industry was highlighted in technicolour recently when two of the big shot international tour operators announced their plans for next year.
Pan European giants TUI and its newly acquired stable mate First Choice (previously the UK’s 1st & 4th largest operator) announced that from next year it will focus solely on the Southern Black Sea region. Whilst this only applies to its UK operations it highlights the vulnerability of hotels, restaurants and general tourism infrastructure to the whims of marketing executives in other countries.
There is no panic that tourism may collapse in the Northern Black sea area, for the region is not dependent on one tour operator alone nor for visitors from one country. What should be looked at is why Tui/First Choice made this decision and could there be a replication by other Tour Operators in future years?
Entrepreneurs invest time and not insignificant amounts of money in tourist related projects on the assumption that there is a market for their investments and if this market is changing they would perhaps best be advised to find out why it is changing and what it is changing to.
It might well be that the Southern Black Sea area is now considered more ‘budget’ orientated and if one Tour Operator takes this stance will others follow?
Is this a threat or an opportunity?
Actually if the aforementioned scenario were to be correct then the Northern Black Sea area might wish to position itself as a more up-market tourism location and turn away from being a ‘budget’ destination.
The key to doing this is ensuring that tourist facilities such as hotels, restaurants and entertainments also reflect a more upmarket image with golf courses, marinas and spa facilities.
It‘s up to the investors to stay ahead of the game!

Cheers, Jain

 

[Jain and Chris]

Does anyone know if or when the new gondola in Bansko is to be built? I know the municipal have earmarked the land running alongside the ski road on the right(looking up) of the old gondola before the Glazne river. It hadn't started when I was there in April supposed to be completed by 2008. Chances are slim!

Hi Diga

This is a good post and one which is relevant to investment in Bansko area. I have asked our office manager to phone the Mayor of Bansko this afternoon to check out what is going on.... whether he will get a reply or not is anyone's guess!?!? I have also put out some feelers with others in Bansko. Hope to get a reply to you soon as we can.

All the best,

 

[Jain and Chris]

Hi Diga

We got a phone call from the Mayor today.

He says that 22,000 sq.m is prepared for the first station of the gondola. Everything is still at project stage as they are awaiting approval from the Ministry of the Environment and Water. He anticipates approval from them in the second half of 2008.

Now, this is from the current Mayor, but keep in mind that there are local elections in Bulgaria at the end of October, so the Mayor and other things may change.

Hope this is of assistance.

All the best

 

[propertastic]

I thought that the following was a very interesting article on the changing face of the market in Bulgaria:

Less Brit Buyers: More Russians

In summary is says that British/Irish buyers, who used to comprise 80% of foreign buyers now only make up 20%, with 80% now coming from Russia and other former Soviet Bloc countries.

What I found particularly interesting was learning at the differences in the type of properties that the 'first wave' and 'second wave' of buyers are taking.

The Brits and Irish always went for the cheapest they can possibly buy. The Russians conversely are looking for the most luxurious properties on the market.

This is good news for anyone who bought top of the range property off-plan as they should be able to sell on the secondary market quite easily, as I have heard that Russians prefer buying finished property than off-plan (in cash - no questions asked where it came from, please!).

For those who bought something 'cheap and cheerful', prospects for easy resale of completed property probably aren't looking quite as rosy.

 

[Jain and Chris]

Hi propertastic

I'm not sure this article is quite true (you don't quote source, so I don't know where you got it from - perhaps it is an agency, which would explain what they are saying).

Latest figures in Bulgaria show statistically that some 70% of all foreign buyers are from the UK/Ireland.

Yes though, there is definitely a change in the face of overseas buyers but differently. We just recently (in the last four weeks) did a survey amongst thousands of both readers and agents/banks/financial companies/removal companies... and found that very interestingly UK and Irish buyers of Bulgarian property are getting significantly younger and are wanting much higher quality properties including rural older properties (conversely to what you are suggesting).

I believe our data to be the most up to date, accurate and impartial available as most figures coming from Bulgaria either come from the NSI (usually two years out of date) or from an agent (own axe to grind or own properties to sell in a given area / price).

I think in the long term those who have bought property in Bulgaria, be it old property for renovation or renovated, be it apartments in ski or coast.... they will all be resold but only those in the very best location will achieve best prices.

All the best

 

[propertastic]

Hi propertastic

I'm not sure this article is quite true (you don't quote source, so I don't know where you got it from - perhaps it is an agency, which would explain what they are saying).

The article was published in:

The Sofia Echo
Dnevnik Daily
Focus News

There's definitely a lot of spurious facts and figures out there. I don't see what this agency would have to gain from overstating the impact of Eastern European buyers on the marketplace though.

 

[Jain and Chris]

Hi propertastic

I checked out these articles and found that the source was an estate agency. Perhaps they do not have a particular point of view, but I believe their main market is highly priced property!? so they are interested in obtaining buyers with a lot of money and in particular Russians.

I have seen no downturn from our readership (97% British and Irish) nor any downturn amongst agents who are selling to Brits.

Maybe an anomoly in reporting???

 

[propertastic]

Hi propertastic

I checked out these articles and found that the source was an estate agency. Perhaps they do not have a particular point of view, but I believe their main market is highly priced property!? so they are interested in obtaining buyers with a lot of money and in particular Russians.

I have seen no downturn from our readership (97% British and Irish) nor any downturn amongst agents who are selling to Brits.

Maybe an anomoly in reporting???

I'm a great believer in the expression:

"lies, damned lies, and regurgitated press releases coming from journalists who are too lazy to go and check the facts from an alternative source"!

 

[Jain and Chris]

Hi propertastic

Too true! If they can't be bothered to check, then at least I wish they would at least credit source !!!

All the best and have a lovely weekend

 

[Jain and Chris]

An independent overseas property show with a focus

Very interesting for any investor or private investor.

An international property show with a difference, one that is independent from any one developer or agent, focused on the markets whose affluence and influence are undoubted. Golfers, property investors, holiday home buyers and those looking for retirement or second homes.

It brings together a selected and top end exclusive choice of agents and developers offering property from many far flung destinations, as well as independent legal and financial experts.

Autumn 2007 – 6th & 7th October 2007 - Lingfield Park Racecourse, Surrey The autumn Homes Worldwide Show is taking place on the 6th & 7th of October at Lingfield Park Racecourse in Surrey, a truly convenient well known venue just 10 minutes from the M25 (J6) and the M23 (J10),close to the borders of both Kent, Surrey and Sussex! Free entry.

We’ll be there and I’m sure many of the totallyproperty people will be there too!

Happy expo to all exhibitors and visitors alike

 

[Jain and Chris]

Tourism Revenues

Of interest to buy to let investors...

Revenues from foreign tourists in Bulgaria have increased by 16.04% in the first half of 2007 compared with the same period last year. Revenues for the first six months were 1347.4 million euros according to prelim data frm the National Tourist Agency. The number of tourists visiting Bulgaria between Jan and August rose 6.88%; one third of all tourists coming from other EU countries.

 

[Jain and Chris]

New Complex Southern Black Sea Coast

The dreams of many to own a property only ten kilometers away from the city centre and yet overlooking the sea will soon come true. This engineering miracle will appear on the Foros Cape, near the coastal city of Bourgas. The lucky owners of real estate in the luxurious holiday complex will reach the centre of Bourgas in about seven minutes by car, ferryboat or bicycle, and will live in houses overlooking a huge marina....

A luxurious holiday complex will be built between the central parts of Bourgas city and the district of Kraymorie. The future pearl of the Bulgarian seaside will spread over 82.6 ha on the exotic Cape Foros, in the Bourgas Bay. One of the investors in this engineering challenge is lawyer Todor Batkov, owner of FC Levski Sofia and The Standart daily, the other being the British investment fund ECDC, which will invest in the construction of a huge business park.

 

[Jain and Chris]

Golf at Shabla

Reported in the newspapers today in Bulgaria:
In the standart this morning :
The city of Shabla, on the Black Sea, has registered a golf development joint venture with Oil and Gas Exploration and Production Co, an outfit affiliated with Varna-based business conglomerate TIM.

The municipality has contributed a 110 ha land plot to the assets of the Golf Shabla AD receiving in exchange a 35% stake in the joint venture.

The municipal land designated for the golf development is valued at around 3.6 mln levs or 3.2 levs/sq m. (although according to local real estate portals, the asking prices in the same area range between 2 and 40 euro/sq)

The private investor will also contribute land valued at 580,000 lv to the project.

The investment project and architectural design should be ready within 10 months. Construction is expected to take up to 24 months.

In addition to the golf course, the 98 mln lv resort will also feature houses located on the fringes of the course.

 

[diga]

Lakeside Park disturbing news!!

Thank you for the reply on the gondola in Bansko question, much obliged. I have another one for you
The Development in Nikolaevka (where I have purchased a house on the strength of) Lakeside Park, it seems has had it's building permit revoked.
I have been over recently and have taken pictures of it's development, so far two blocks have been constructed and very nicely too.
On there website it continues to show development updates.
I have gotten this information from a concerned owner of an apartment who has paid there deposit and have been discussing it on another forum. I can't find any info about this on the web and in your knowledge and wisdom I was hoping you could shed some light on the facts as I have some interest in this

 

[newlanark99]

Has your magazine covered the row between Sunset Resort, Platinum Developments and a group of investors who are still being denied the refund of their deposits years after they were first promised them. If not it would be good to. It helps warn people about the activities of some companies out there which help to damage the market as a whole.

 

[Jain and Chris]

Hi newlanark

No, we haven't covered it. One of the biggest problems with anything of this kind is that if legal action is being taken, then we can't print at that time. Plus, it is very difficult to obtain written facts about the whole and any individual situation.

 

[Jain and Chris]

Thank you for the reply on the gondola in Bansko question, much obliged. I have another one for you
The Development in Nikolaevka (where I have purchased a house on the strength of) Lakeside Park, it seems has had it's building permit revoked.
I have been over recently and have taken pictures of it's development, so far two blocks have been constructed and very nicely too.
On there website it continues to show development updates.
I have gotten this information from a concerned owner of an apartment who has paid there deposit and have been discussing it on another forum. I can't find any info about this on the web and in your knowledge and wisdom I was hoping you could shed some light on the facts as I have some interest in this

Morning Diga, I have no information on this right now, but will endeavour to find out for you today/tomorrow - that is, Bulgarian government officials willing

 

[newlanark99]

Hi newlanark

No, we haven't covered it. One of the biggest problems with anything of this kind is that if legal action is being taken, then we can't print at that time. Plus, it is very difficult to obtain written facts about the whole and any individual situation.

As one of those investors (and a professional journalist) I'm happy to supply all the information, a case story and put you in touch with the new action group formed to secure the refunds investors were promised from Sunset Resort/Platinum Developments.

Give me an email address and i'll contact you.