Real Estate Factsheet April 2007 by Invest Bulgaria Agency
Latest figures about investing in Bulgaria, property prices by regions

Macroeconomic Factsheet April 2007 by Invest Bulgaria Agency

Bulgaria Could be Europe's Next Golfing "Hotspot"



EU Accession Drives Bulgarian Real Estate Prices Up


Bulgarian real estate prices rose by 10% in the first two months of this year after the country's accession to the European Union, daily 24 Hours reported on Tuesday.


Demand continues to grow, driven by the increasing number of young people looking to buy housing, while supply is limited.


The trend surprised industry insiders, who expected prices to stabilize after accession.


Should the tendency continue in the next months, the higher prices could be here to stay, said Strahil Ivanov, head of the Yavlena real estate company.


Some prospective buyers believe that supply could dry out entirely within months, driving the prices even higher, he added.


Other brokers, however, argue that the market will settle down. Despite higher prices demanded by sellers, most of the deals were carried out at the real valuation of the properties, said Vasko Atanassov of the "Victoria Invest" real estate agency.


Bank credits remain the main source of financing for real estate deals, as Bulgarian consumers remain hungry for loans and are willing to draw larger sums, a report by lending consultants Credit Centre showed on Monday.


The average size of loans drawn in Bulgaria, according to the report's data, rose by nearly one fifth to EUR 31,300 at the end of February, compared to EUR 26,000 in December last year.


The report also claims the share of loans over BGN 100,000 (roughly EUR 50,000), rose to 18% in February, compared to 15% in December and 6% at the beginning of 2006.



Bulgaria to remove limitations to foreign propert purchase
Fri 08 Dec 2006

The Parliament was considering a move from forbidding foreigners to own property in the country to some special regulations.

Changes feature in ownership regulations, discussed on first reading on December 7. Voting on the new laws would take place on December 8, Bulgarian National Radio reported.

Such changes were needed because of Bulgaria's upcoming EU entry. The country accepted EU requirements for the free movement of capital.

Foreigners will be allowed to purchase property in Bulgaria, following international contracts. This would guarantee the opening of Bulgaria's property market upon the country's EU entry, the national radio said.

Bulgaria is going to introduce a new term 'citizen of EU member state' to replace the term 'foreigner' used until present in ownership regulations, the report said.

The same regulations would apply to citizens of countries that are members of the European Economic Community and of Lichtenstein, Norway and Iceland.

Current regulations for the acquisition of a second home would remain valid for citizens of EU member countries, who reside permanently in Bulgaria, the report said.

Current regulations for the purchase of property by international organisations will remain unchanged.


Bulgaria's Bansko most developed ski resort in Eastern Europe
Tue 05 Dec 2006


An article called Snow Business in Bulgaria and Switzerland published in The Independent compared Bulgaria as a ski destination to Switzerland.

Bulgaria was an “impoverished former socialist republic,” but what the country and Switzerland had in common was that both were recently becoming more attractive to British skiers, The Independent said.

Last season the two countries registered a greater proportional growth in deals with UK main tour operators than any other European destination.

A dozen of years ago Bulgaria offered “bargain-basement skiing.” Currently the country is a place where many UK operators seek low-cost holidays.

A 130 million euro investment transformed Bansko, one of Bulgaria’s ski resorts, into a modern, efficient ski area. The 2007 Great Skiing & Snowboarding Guide describes Bansko as the "best-developed ski resort in Eastern Europe," The Independent said.

The resort turned into an ideal place for UK investors interested in residential property.

Bansko's transformation secret was the construction of a gondola connecting the outskirts of the town and the former ski-area base. The ski area is well designed and has modern and lifts, but is small, fails to challenge good skiers and is not inexpensive.


Construction in Bulgaria's Bansko stops on January 1 2007
Tue 07 Nov 2006

Construction in Bansko ski resort will cease starting January 1 2007, until all urban planning is completed.
Afterwards construction would be permitted only in certain areas, Bansko mayor Alexander Kravarov told Darik Radio.

Nearly 300 construction permits were issued in Bansko in 2005 and 2006 and a number of additional applications were received, said Kravarov.

Currently a sq m of property in Bansko costs 200 euro and once planning was completed prices were expected to increase by 20 per cent.

Law enables temporary construction halts, while planning is underway.

Bansko's infrastructure was not posing major problems. Over-construction was the main negative development that the resort was experiencing, Kravarov said.


Bulgaria, Romania enter EU on January 1 2007- EC Report
Tue 26 Sept 2006

A European Commission report unveiled in the European Parliament in Strasbourg today recommends that Bulgaria and Romania be admitted to European Union membership on January 1 2007, but subject to strict monitoring of key areas.

Addressing the European Parliament, EC president Jose Manuel Barroso said that the commission had just adopted a report which concluded that both countries were ready to “take on all the rights and responsibilities as EU members on January 1 2007”.

He congratulated the peoples and authorities of Bulgaria and Romania for all the efforts they had undertaken to make accession possible.

Barroso said that some areas required further action up to, and beyond, accession.

A special mechanism for co-operation would be set up to fulfil requirements regarding action against organised crime, against corruption, and to reform the judiciary.

Specific benchmarks would have to be met.

Barroso said that the EC would report regularly to the European Parliament and European Council.

If necessary, in the event of insufficient progress, safeguard clauses would be invoked.

The report said that Bulgaria had made progress in its campaign against organised crime, but these efforts would have to be pushed further after accession, and progress would be subject to special monitoring post-accession. Bulgaria and Romania will be required to provide regular progress reports, and monitoring will continue until the EU is satisfied that sufficient progress has been made. Similar monitoring will be in effect over reform of the judiciary.

The report criticised the low success rate in prosecuting those behind high-profile organised crime murders, and in countering people trafficking, illegal drug smuggling, money laundering and the illegal possession of firearms.

It called for improved co-operation among law enforcement authorities in Bulgaria and between these authorities and financial institutions, and improved co-ordination with Europol.

The report also expressed concern about shortcomings in Bulgaria’s capacity to absorb EU funding.

The two countries will also have to step up control over veterinary health and food control and improve transparency in the allocation of European funds for agriculture.

If management of EU funds fails to come up to standard, European subsidies for agriculture could be cut by 25 per cent, meaning a shortfall of millions of euro from funds already allocated.

The strict conditions being attached to accession are widely seen as representing firm pressure on the two countries to continue reforms to justify the recommendation to allow them into the EU. In the event of continued failure, the countries could face severe penalties in the form of safeguard clauses being invoked.

The September 26 EC report is a sequel to the May report by the commission, that in the case of Bulgaria identified six areas, including organised crime and judicial reform, that required urgent attention to enable membership of the EU at the start of 2007.

Today’s report confirming the 2007 accession date follows the signing of the accession treaty between Bulgaria, Romania and the EU on April 25 2005.

Accession negotiations between the EU and Bulgaria were finalised as confirmed at a meeting of the European Council in Brussels on December 17 2004. At this meeting, the Council said that the accession date was expected to be January 2007.

In December 1999, the European Council agreed to open accession negotiations with Bulgaria, Romania, Slovakia, Latvia, Lithuania and Malta and to recognise Turkey as an applicant country.

The current criteria for EU enlargement were set at a European Council meeting in June 1993.

Bulgaria’s current tripartite coalition Cabinet, which took office in August 2005, has made its key priority Bulgarian membership of the EU as of January 2007.

Bulgarian-language media reports said that the moment of accession would be celebrated at a joint ceremony by Bulgaria and its northern neighbour at a bridge spanning the Danube, near the Bulgarian city of Rousse.


Property purchase in Bulgaria's coastal region an excellent investment
Tue 12 Sept 2006

The welcoming attitude of Bulgarians and the lack of major language differences made investment in property in Bulgaria’s coastal region an excellent investment, Russian magazine Dengi reported.

Prices for luxurious Bulgarian property were not that high, which made real estate investment in Bulgaria an excellent opportunity that could bring up to 100 per cent annual revenue, the publication said.

Bulgaria was experiencing a significant construction boom, making the country an area of interest for investors and holiday property seekers alike.

Property price increase in Bulgaria reached 150 per cent, Dengi reported. The expected EU entry of Bulgaria on January 1 2007 played an important role in maintaining the high growth rate.

Dengi reported that the service in Bulgarian resorts was better than the one in Russian. The country was able to maintain high investor interest in the coming 10 years, Russian property agents said.



15 per cent property price increase expected in Bulgaria
Fri 02 Jun 2006

Property prices in Bulgaria are expected to rise by 15 per cent this year, participants in the Real Estate and Investment Forum RINFOR said.

In the first three months of 2006 prices went up by 4.7 per cent. Nearly four to five times more buildings were constructed in Bulgaria, compared to the number for the previous year.

Bulgarians living abroad invest annually 1.2 billion euro in property. Mortgages are also on the rise. The growth rate in credit-taking reached 85 per cent, compared to the March 2004 levels. Interest rates would likely go down, once Bulgaria joins the European Union, analysts said.

According to some international analysts the Bulgarian credit taking system was outdated. As a result only two per cent of the property purchases occurred through the use of loans. In the Czech Republic the figure is eight per cent and in Hungary- 10 per cent.

Bulgaria Marcoeconomic Factsheet June 2006 by Invest Bulgaria Agency
Economy, Investment, Business, Industry

Bulgaria Value Scope 2006
Bulgaria positioning in leading expert reports, investment ratings and world media

Bulgaria Investment Guide 2006: Business Environment and Key Sectors

Bulgaria Factsheet 2005: Economy, Investment, Business and Industry

Bulgaria Factsheet 2004: Real Estate Sector

Super Borovets Project



Bulgarian tourism in facts and figures for the period January – December 2006:

4.5 % more foreign tourists for the period January – December 2006 (excluding same-day visitors).

2.0 % more foreign tourists for leisure and recreation for the year 2006.

Increase in the number of tourists from Central Europe and European Union.

8.1 % more international tourism receipts


Inbound Tourism

A total of 4,837,150 foreign tourists (excluding same-day visitors) have visited Bulgaria in 2006 (+4.5% in comparison with the year 2005).

A total of 4,090,421 foreign tourists visited Bulgaria for leisure & recreation purposes (exclusive of the children registered in their parents’ passports) in the period January - December 2006, which was an increase of 2.0% compared to the year 2005.

The ranking by number of tourists for the period January-December 2006 is headed by Greece with 665,894 tourists (-11.34%), followed by Germany – 582,315 tourists (-2.43%), TFYR Macedonia with 581,139 tourists (-14.79%), Serbia and Montenegro – 534,474 tourists (-10.53%),United Kingdom – 374,494 tourists (+36.11%), Turkey – 271,160 tourists (+36.73%), Romania – 187,311 tourists (+46.78%), Russia – 175,295 tourists (+17.39%), Czech Republic – 126,666 tourists (+13.46%), Poland – 113,544 tourists (+4.37%), Israel – 103,523 tourists (+23.85%), Sweden – 101,332 tourists (+2.42%), Slovakia – 89,226 tourists (+7.69%), Ukraine – 83,746 tourists (+12.06%), Finland – 83,056 tourists(+39.35%), France – 74,019 tourists (+24.69%), Denmark – 72,094 tourists (+31.88%), USA – 60,405 tourists(+12.76%), Italy – 59,909 tourists (+13.79%), Austria – 57,909 tourists (+24.00%), Hungary – 44,520 tourists (-0.54%), Norway – 39,764 tourists (+76.96%), Belgium – 32,583 tourists (-3.71%), Ireland – 29,176 tourists (+123.91%), Moldova – 22,837 tourists (+48.74%) etc.


Balance of payments of tourism

According to preliminary data, the revenues from international tourism (exclusive of transport) for the period January – December 2006 totaled 1,888.2 million EURO (+8.13% up the 2004 level for the same period). The expenditures of Bulgarian nationals on travels abroad for the period January – December 2006 totaled 802.2 million EURO (+3.43% compared to the year 2003). The net revenues (positive balance) for the twelve months of 2006 from international tourism totaled EURO 1,086.0 million (+11.9% compared to the year 2005).

European Union – Bulgaria

The EU countries are taking an increasing importance as markets generating tourists for Bulgaria. For the twelve months of the year 2006 the number of tourists from EU markets is 5.65% up the 2004 level. The EU countries’ share jumped from 10.8% in 1996 up to 54.24% in 2006.