At the end of last week, a business forum dedicated to the challenges facing the real estate market in Bulgaria was held in Varna. The experts who took part in the event united around the opinion that the past year was successful for the real estate market in Varna. There is a growth in both demand and supply, as well as in new construction, where the growth is about 22%.

For the last two quarters of 2022, however, a decline in the number of transactions is observed in Bulgaria. Maria Parova, who is the manager of one of the largest real estate agencies in our country, said this in an interview with Radio Varna.

"Against the background of the first two quarters, Varna ended the year with positive results and there is even a minimal growth in transactions. What we observe is that buyers make difficult decisions about the purchase of a property, do more inspections and take longer to think things through. Together with the decrease in transactions, this means that the market goes from growing to a plateau. That is, it becomes more balanced," commented Parova.

She does not expect property prices to rise this year.

"If there are no cataclysms, as in the last two years, I expect prices to maintain their current values," commented the expert.

According to Maria Parova, the war in Ukraine and the wave of refugees in Bulgaria have affected the rental market, which until then was at a standstill due to the pandemic. The increase in rental prices is about 30-40%, she also shared.

Since the end of last year and the beginning of this year, there has been a tendency for Ukrainian citizens to purchase property in Bulgaria more and more often. They are looking for all kinds of properties, and the leading factor in their selection is the price and the budget they have.

Source: https://www.novinite.com

The Council of Ministers approved a draft Law on Amendments and Supplements to the Law on Cadastre and Land Registry. It provides for the provision of full digitization of the property register maintained by the Registration Agency, by creating electronic batches of real estate and electronic batch files with the registered acts and the documents attached to them.

Already in 2000, a legislative reform in the registration system was envisaged by moving from a personal to a real system of registration (not by persons, but by property). The reform provided for the property register to be kept not only on paper, but also in parallel in electronic form. More than 20 years later, it has not been implemented in practice - at the moment, entries continue to be made using the personal system only on paper, it is pointed out in the reasons for the bill.

With the voted draft law, the property register is legally regulated as a common electronic database containing the electronic lots of real estate and the electronic lot files with the registered acts and the documents attached to them. Identity is regulated between the contents of the paper lot and the lot in electronic form, respectively the contents of the lot file on paper and in electronic form. The authority of the registry offices to enter information into the electronic batches of real estate and the electronic batch files of the registered acts with the documents attached to them is defined by law.

Source: https://www.novinite.com

The pandemic has fundamentally changed our lives. Habits have become different, and the desire to seek a freer and healthier life has intensified. That is why in the last 2 years 200,000 Bulgarians have moved to the countryside or at least bought a property far from the big city. In some regions, such as Plovdiv and Stara Zagora, the demand for houses exceeds 10 times their supply, according to a study by the Association of Bulgarian Villages.

Bulgarians are mainly looking for ready-to-move-in houses, with a yard of at least one decare, as well as houses in new residential complexes. The Plovdiv village of Markovo is one of the most developing in the region. According to issued building permits, it ranks second in Bulgaria after the Municipality of Sofia.

In the village of Markovo, known as Plovdiv's Beverly Hills, with poor infrastructure and lack of sewerage, set a real record for newly registered - 1,300 people in the last two years alone.

“This, of course, makes us very happy but it leads to some problems such as lack of places in kindergarten and school,” said Desislava Terzieva, mayor of the village.

The influx of people wishing to settle in the village has led to a construction boom. 686 permits were issued in one year.

In the villages around Plovdiv at the moment it is almost impossible to find and buy a house, the brokers explain.

“We have at least 25% growth in property sales in the villages, but the prices are already quite close to those in the city. That is, in the perimeter of about 5-7 kilometers around Plovdiv, if you want to buy a house that is in good condition, suitable for living with a yard of up to 700 acres, you need to prepare over 100,000 euros,” said Alexander Ushev, manager of a real estate agency.

Real estate agencies are also reporting a jump in house prices in rural areas due to high demand. The increase is on average between 20 and 30%.

According to the Association of Bulgarian Villages last year alone, the total number of newly registered in the villages was 108,550. The forecast for this year is that they will increase by another 90,000 people.

Source: https://www.novinite.com/

In addition to the prices of basic food products and household bills, the prices of real estate in Bulgaria are also going up.

According to a study by Nova TV in Burgas, the wave of refugees from Ukraine is affecting the real estate market - Russians are selling and Ukrainians are buying or renting housing.

“There is an increased demand for rental accommodation. This is not only in Burgas but also in the region. The largest number of refugees is in Sunny Beach, Nessebar, Burgas, Kiten and Primorsko”, said the mayor of Burgas Dimitar Nikolov.

In the region of Varna, the National Real Estate Association reports up to 35% growth in transactions for the first quarter of 2022, compared to the same period last 2021.

“There is a change in the real estate market. In the Varna region there is a serious increase in transactions as well as an increase in residential property prices by 5% - 10%,” said Ivaylo Gradev, member of the board of the association.

Source: https://www.novinite.com

The number of commissioned residential buildings in the fourth quarter of 2021 was 1329, which is 43.2% more than the same period in 2020, and newly built housing in them is 6430, or 49.2% more, according to the National Statistics Institute.

The total useful floor area of ​​newly built dwellings in the fourth quarter of 2021 was 618.4 thousand square meters or 48.5% more than in the same quarter of 2020, and the living space increased by 53.7% and reached 492.1 thousand square meters.

At the same time, the average useful floor area of ​​a newly built dwelling decreased from 96.6 sq.m in the fourth quarter of 2020 to 96.2 sq.m in the same quarter of 2021. The largest average usable area of ​​a newly built dwelling was registered in the districts of Montana - 208.9 sq.m, and Gabrovo - 192.2 sq.m, and the smallest - in the districts of Vratsa - 52.3 sq.m, and Blagoevgrad - 67.9 sq.m.

Of the newly built residential buildings put into operation in the fourth quarter of 2021, 76.3% were with reinforced concrete construction, 20.5% with brick construction, 2.4% with another, and 0.8% with prefabricated construction. The largest is the relative share of newly built houses (73.9%), followed by housing estates (18.7%). Compared to the fourth quarter of 2020, there is an increase in the number of newly built houses, apartment buildings, villas and mixed-use buildings.

Most residential buildings were put into operation in Sofia - 235 buildings with 2173 dwellings and the districts of Plovdiv (175 buildings with 460 dwellings) and Varna (162 buildings with 1186 dwellings in them).

The share of newly built dwellings with two rooms is the highest (41.9%), followed by those with three rooms (32.8%), and the lowest is the share of dwellings with six or more rooms - 3.9%.

Source: https://www.novinite.com

Real estate prices will continue to rise this year, financial analysts warn. Demand continues to grow. Is there already a bubble in the real estate market and what are the risks - answers Svetozar Kostadinov from BNT.

Spas Georgiev is looking to buy a one-bedroom apartment and give it for rent. According to him, this is a good measure against rising inflation, and he will use a bank loan to finance it. Does he see a risk to his investment?

"If there is a time when there are no tenants or no income in the property, it will simply delay its payment, but in any case it will pay off, because properties are always in demand," Spas Georgiev commented.

About 40% of buyers are looking for housing for investment purposes, according to brokers. Properties announced for sale 2-3 years ago are also being bought. And in some districts of the big cities, there is an increase in prices of over 10%.

"It is approaching the market, which was between 2005-2008, at the moment there is a lot of interest in buying and selling. There are many motivated buyers, there are far fewer sellers, there are far fewer good offers," commented Ivan Peev, real estate agent.

Increased interest in buying homes and taking out mortgages has prompted the Bulgarian National Bank to increase its countercyclical capital buffer.

The purpose of the mechanism is to protect the banking system from potential losses in periods of excessive credit growth. Whether the BNB will announce a new increase to 2% will largely depend on the movement of mortgage loans.

"If there is a property bubble, and prices fall, and people stop paying their mortgages to the banks because they took an investment and expected to sell the property or rent it out to get their money back, and this is not possible, in fact, the risk will be borne by the banks," said Nikola Yankov, an investment consultant.

Negative interest rates on deposits also make people look for more profitable assets in which to invest their savings.

"In 3/4 of the real estate transactions now in Sofia should be cash, not credit. That is, it is clear that people simply transfer their money from zero-interest deposits to real assets, fearing inflation," said Tsvetoslav Tsachev, investment consultant.

Despite the BNB measure, brokers expect the demand for housing to continue in the coming months, and the growth of prices to continue, but at a slower pace.

Source: https://www.novinite.com

Housing in Sofia rose by 48.6% in four years. This ranks the capital in first place among the major cities in the ranking of property prices. The prices of newly built apartments in Sofia in the first quarter of the year are 43.3% higher than in 2015, according to data from the National Statistical Institute. In the case of existing apartments, the increase for the same period is much higher - by 50.6%. For such a long period of time in the rise in price of new and old apartments in Sofia there is the smallest difference compared to other major cities in the country with over 120 thousand inhabitants. This shows that there is a serious demand in the capital for both new construction and existing housing.

In second place among the six largest cities in the country is Plovdiv with an increase in property prices by nearly 48% over a period of four years. In contrast to Sofia, in the city under the hills the rise in price of new construction is significantly higher than that of old homes. The increase in the prices of new apartments in Plovdiv is by 53.1% compared to 2015. Dwellings in existing buildings in the city under the hills for the same period have risen by 45.4%.

The top five of the big cities with the fastest rising real estate is supplemented by Varna, Stara Zagora and Ruse, where the increase in prices for the period is at a similar pace - by 34-37%. However, with a small lead in third place in the overall ranking is Stara Zagora (+ 37.3%), followed by Ruse (+ 35%) and Varna (+ 34.5%). But for each of these cities there is a significant difference between the movement of prices of new and existing housing.
In Varna the new apartments have risen in price by 24.1% for the period, and in the existing ones the price increase is much bigger - by over 40%. As in the NSI data, real estate transactions in the resort complexes are not included.

In Stara Zagora the situation is different. The increase in the price of new construction is significantly higher - by 54.2%, as in this segment of the market the city is ahead of even Sofia and Plovdiv and ranks first in the ranking. In new construction, the movement of prices depends a lot on how many new buildings come on the market, in which neighborhood they are located, as well as on the type of construction - whether it is a luxury gated complex or a simpler building. All these factors have led to more expensive new apartments in Stara Zagora than in Sofia, although the demand for housing in the capital is greatest due to the rapid growth of the city. For the existing apartments in Stara Zagora, the increase in prices is also serious - by nearly 32%, according to national statistics.
In Ruse, the apartments in existing buildings have risen in price by over 35% for the period, while in the new ones the increase in prices is significantly less - by 21.2%.

The last sixth place in the ranking for property prices in the largest cities is for Burgas. Housing prices in the seaside town have increased by an average of 20.8% compared to 2015, according to NSI data. In the case of new apartments the increase is only by 12%, but in the case of dwellings in existing buildings the increase in prices is much higher - by 29.3%.

For the country as a whole, the housing prices for the period have risen by 35.5% and in the movement of the prices of the new and old construction there is a small advantage for the existing dwellings. Apartments in old buildings have risen in price by 37.7%, and the growth of prices of new construction is by 31.8%.

Source: https://www.novinite.com

Bulgaria won the top award for a travel
destination advertising video at the 41st FITUR international
tourism trade fair in Madrid, the Bulgarian Tourism Ministry
reported on Friday. This is one of the most important tourism
exhibitions in the world involving the largest Spanish tour
operators and travel agents.

The current edition, taking place between May 19 and 23, aims to
 help restart tourism while the world is still grappling with
the COVID-19 pandemic. FITUR is seen as a major event for the
recovery of the industry.

Bulgaria's presentation was organized by the Tourism Ministry.
The country was nominated in two categories: videos advertising
travel destinations and videos advertising tourist products. The
 winning Bulgarian entry in the first category is titled
"Bulgaria - Find Your Story." It can be watched at:

Source: http://www.bta.bg

Tenants’ rental costs have fallen by at least 10%. The decline is registered countrywide, explained Dobromir Ganev, Chairman of the National Real Estate Association in the "Before All" talk show on BNR

The occupancy rate of the apartments meant for short-term rental for tourism purposes has decreased dramatically, experts report.

Many real estates around universities have also remained empty. Some of the workers in the IT industry who are from other cities have exited this market in Sofia because of their new home office regime and return to their home places.

On the main shopping streets in large cities there are quite a few vacant commercial areas. Everything is explained by the current epidemic situation, commented Dobromir Ganev.

As regards realty sales prices in the fourth quarter of last year, the NSI reported an increase of 8.6% compared to the same period of 2019. For Sofia the increase stands at 11,3% for existing housing and a tad over 4,5% for the new. In Plovdiv, the growth in housing prices was 3.2%.

Ganev confirmed the trend towards relocation from major cities to villages and quieter settlements, where, in his words, people has access to nature friendly environment, more open spaces and healthier life.

Source: https://www.novinite.com

February 16 (BTA) - According to seasonally adjusted figures, Bulgaria's gross domestic product (GDP) declined by 3.8 per cent in the fourth quarter of 2020 from the comparable period of 2019, but increased by 2.1 per cent from the third quarter of 2020, the National Statistical Institute reported here on Tuesday.

The country's GDP amounted to 32,076.9 million leva at current prices in the fourth quarter of 2020.

The gross value added (GVA) generated by the national economy during the fourth quarter of 2020 amounted to 27,778.1 million leva at current prices. Compared to the preceding quarter, it grew by 1.5 per cent but dropped by 3.8 per cent from the fourth quarter in 2019.

Final consumption expenditure accounted for 80.4 per cent of GDP during the fourth quarter of 2020, or 25,796 million leva. The gross fixed capital formation in Q4 2020 stood at 6,992.8 million leva, accounting for 21.8 per cent of the GDP. The external balance (exports minus imports of goods and services) was negative.

According to preliminary data on final consumption in Q4 of 2020, the main reason for the economic growth compared to Q3 of 2020 is the 11.3 per cent increase in exports of goods and services.

According to seasonally adjusted data, compared with the fourth quarter of 2019, the fourth quarter of 2020 saw a decrease in final consumption by 5.7 per cent, and in gross capital formation by 7.9 per cent. Exports of goods and services declined by 11.2 per cent and imports - by 3.9 per cent. RY/ZH

Source:http://www.bta.bg

In 2020, more than BGN 1 billion worth of projects are certified under the Investment Promotion Act, which is a record for the last 6 years, announced Minister of Economy Lachezar Borisov at a working meeting with Prime Minister Boyko Borissov.

He pointed out that our country has set a record in attracting investments in times of crisis.

The certified projects are 34, 17 of which are in high-tech production and services, according to the Minister. These projects create 4,500 new jobs. Compared with 2019, this is almost twice as many.

The Economy Minister also pointed out that the promotion of existing projects continues, as the budget resource used for it is worth BGN 16.4 million. He explained that we are talking about 23 companies that have saved over 5,134 jobs. The projects that have been supported are worth BGN 438 million.

For his part, Premier Borissov said that, in the first weeks of 2021 the resource funds will be provided to over 3300 micro- and small-sized companies, and as of yesterday the payment of contracts to medium-sized enterprises has begun.

Source: https://www.novinite.com

Foreign direct investment in Bulgaria for the period January-July amounted to 1.4 billion euros. Compared to the same period of 2019, their increase is by 494.8 million euros, or 54.2%, the Bulgarian National Bank has announced. In July alone, foreign investment was 958.8 m euros, with 400 million a year earlier.

On this episode of Postcards, Euronews is in Veliko Tarnovo, the former capital of Bulgaria and home to a real national treasure: Tsarevets Fortress.

Perched on steep cliffs above the meandering Yantra River, the City of the Tsars, as it is known locally, was the former seat of Bulgaria's medieval kings.

The ancient stronghold boasts an impressive collection of fortified walls, watchtowers, dungeons, a royal palace, 400 dwellings and 18 churches, and it attracts thousands of tourists every year.

Bulgarian pride

Tsarevets is also a powerful symbol of Bulgarian pride.

“For all Bulgarians, to come here once in a lifetime is to make a journey, like a pilgrimage," says Rumyana Pavlova, a guide at Veliko Tarnovo's Regional Museum of History. "It always evokes the memory of our glorious past, when Bulgaria had access to three seas. That was during the 12th, 13th, 14th centuries when Bulgaria was a great political force, competing with the Roman Empire, with Byzantium."

Throughout the ages, occupants of the site have left their own mark on the fortress architecture.

The modern era is no exception and one elaborate painting from the mid-1980s, covers the walls of an entire room, depicting the complex and fascinating history of the Tsarevets Fortress.

Arbanasi medieval village

With so much to see, one can easily spend hours exploring the site and its peaceful and lush surroundings.

On leaving Tsarevets Fortress, visitors can head just a few kilometres further to the protected village of Arbanasi, known for its historical churches and monuments and its unique mix of Balkan and Ottoman architecture.

Source: https://www.euronews.com

In order to help bring the sector of renovation services out of the grey economy, in which no income is declared, the Ministry of Finance offers a discount on taxes when repairing a home, Club Z reports. The discount can reach up to BGN 200, according to a bill published by the Ministry.

The requirement is that the home is owned (not rented) and a sole one, and those wishing to renovate it can reduce their tax base by up to BGN 2,000, hence reduce the amount of their declared income. Given that in Bulgaria income tax is 10%, the tax bonus can reach up to BGN 200.

The conditions for receiving the discount are related to the presentation of documents to the tax authorities proving that renovation has taken place - receipts, invoices, payment orders and others issued by the responsible entities. They, in turn, will have to declare income. Another requirement is that the renovation be carried out by a Bulgarian company that is not related to the homeowner.

If the bill is passed, it should take effect early next year. It is clear from the proposal of the Ministry of Finance that the bonus can also be used for renovations made this year.

Source: https://www.novinite.com

Bulgaria’s Minister of Health Kiril Ananiev issued an order regulating the entry into the Republic of Bulgaria as of June 1, the transit through the territory of the country and the rule for the mandatory 14-day quarantine.

As of June 1, 2020, a temporary ban on entry into the territory of the Republic of Bulgaria is introduced for all persons, regardless of their citizenship, through all border crossing points, by air, sea, rail and road transport.

The ban does not apply to Bulgarian nationals, nationals of EU member states, the United Kingdom, Schengen visa zone member countries (including the Republic of San Marino, the Principality of Andorra, the Principality of Monaco and the Vatican City State), the Republic of Serbia and the Republic of North Macedonia, members of the families of Bulgarian citizens, as well as persons who are in actual cohabitation with a Bulgarian citizen, and foreigners with the status of permanent or long-term residence in Bulgaria and members of their families.

Also allowed to the territory of Bulgaria are:

• Medical professionals, medical researchers, social workers, and their supervisors where the purpose of the journey is related to the profession they are pursuing;
• Workers involved in the supply of medicinal products, medical devices and personal protective equipment, medical equipment, including its installation and maintenance;
• Transport staff engaged in the international carriage of passengers and cargo, crews of commercial aircraft and other transport staff as required, including vessel crews and persons involved in the maintenance of vessels;
• Foreign officials (heads of state, members of governments, etc.) and members of their delegations, as well as diplomats, officials of international organisations, military personnel, members of the security and public order services and humanitarian workers in the performance of their duties;
• People travelling for humanitarian reasons;
• Representatives of trade, economic and investment activities and people directly involved in the construction, maintenance, operation and ensuring the safety of the strategic and critical infrastructure of Bulgaria, implementation of projects certified under the Investment Promotion Act, analysis of projects of potential investors and other activities of importance for the economy of the country, certified by a letter from the Minister of Economy or another minister responsible for the respective activity, as well as people engaged in shipbuilding and ship repair;
• Seasonal agricultural and tourism workers;.
• Cross-border workers.

The order also sets out who may transit through Bulgaria:

• Nationals of EU countries, the UK and Schengen member countries (including the Republic of San Marino, the Principality of Andorra, the Principality of Monaco and the Vatican City State) and their family members in order to return in the country where they reside.
•  Third-country (meaning, non-EU) nationals who have a long-term residence permit in another EU country, the UK, or in a Schengen country (including the Republic of San Marino, the Principality of Andorra, the Principality of Monaco and the Vatican City State) and members of their families in order to return to the country of residence.
•  Citizens of the Republic of Serbia, the Republic of North Macedonia, Montenegro and Turkey in order to return to the country of which they are nationals.

Transit is allowed only in cases where immediate departure from the territory of the Republic of Bulgaria can be guaranteed.

The obligatory 14-day quarantine on entry to Bulgaria applies to everyone coming from the United Kingdom, Sweden, Belgium, Ireland, Portugal, Spain, Malta, Italy and all non-EU countries except Serbia and North Macedonia. The quarantine should take place in the home or other accommodation specified by the person and an advisory note should be issued by the director of the relevant regional health inspectorate or a person authorized by him/her.

The requirement for the 14-day quarantine rule does not apply if those arriving are Bulgarian citizens and citizens of other EU countries, the UK, Schengen countries, who are travelling for humanitarian reasons, or are trade representatives, or are involved in activities crucial to the strategic and critical infrastructure of Bulgaria, implementation of projects certified under the Investment Promotion Act, analysis of projects of potential investors and other activities of importance for the country’s economy, certified by a letter from the Minister of Economy or another minister responsible for the relevant activity, as well as persons engaged in shipbuilding and ship repair.

It also does not apply to:

• Bus drivers carrying out international carriage of passengers;
• Lorry drivers involved in international carriage of goods;
• Members of crews of vessels who are Bulgarian citizens.

The relevant regional health inspectorate provides information to the Ministry of Foreign Affairs about the quarantined foreign nationals (names, date of birth, document number, citizenship).

The persons, who are not placed under quarantine, as well as the persons, who transit through the territory of the country are required to submit to the border health control authorities a declaration, in which they are obliged to observe the anti-epidemic measures introduced by an order of the Minister of Health on the territory of the Republic of Bulgaria, as well as that they are aware of the risks of the COVID-19 disease.

The Road Infrastructure Agency (RIA) specifies the place where the lorry and the driver must stay until the relevant ban is lifted, in cases in which the drivers of lorries transporting goods and goods destined for other countries which are allowed to transit through Bulgaria, cannot leave the country due to a ban by a country bordering the Republic of Bulgaria./BNT

Source: https://www.novinite.com

In December 2019, the number of arrivals of visitors from abroad to Bulgaria was 673.4 thousand or by 8.6% more in comparison with December 2018. An increase in the trips with all observed purposes was registered: ‘others’ (including as guest and passing transit) - by 9.9%, ‘professional’ - by 8.0% and ‘holiday and recreation’ - by 7.3%. Transit passes through the country were 28.8% (194.1 thousand) of all visits of foreigners to Bulgaria.
The share of visits of ЕU citizens was 55.4% of the total number of foreigners’ visits to Bulgaria in December 2019 or by 6.4% more in comparison with the same month of the previous year. An increase was registered in the visits of citizens from the United Kingdom - by 37.3%, Italy - by 13.9%, Austria - by 11.5%, Greece - by 5.7%, Romania - by 4.9%, and etc. At the same time decreased the visits from Czech Republic - by 14.4%, Slovakia - by 10.5%, Belgium - by 6.1%, Germany - by 2.1%, and etc. The visits of foreigners in the group ‘Other European countries’1 increased by 11.9%, as the highest increase was observed in the visits of citizens of Turkey - by 19.3%. In December 2019, the predominant share of the visits with other purposes was 46.9%, followed by trips with holiday and recreation purpose - 34.9%, and with professional purpose - 18.2%.
In December 2019 the most visits to Bulgaria were from: Romania - 143.5 thousand, Turkey - 112.6 thousand, Greece - 111.0 thousand, Serbia - 48.4 thousand, Republic of North Macedonia - 47.4 thousand, Germany - 22.9 thousand, the United Kingdom - 20.9 thousand, Ukraine - 18.9 thousand, Italy - 13.0 thousand, Israel - 11.1 thousand.

Source: https://www.novinite.com

After five years of strong house price rises, Bulgaria’s housing market remains strong, buoyed by low interest rates and a stable economy.
The nationwide house price index rose by 7.29% (3.56% inflation-adjusted) during the year to Q1 2019, following y-o-y rises of 5.54% in Q4 2018, 6.27% in Q3, 7.51% in Q2 and 7.09% in Q1, according to the National Statistical Institute (NSI). During the latest quarter, house prices increased 2.62% (1.42% inflation-adjusted) in Q1 2019.
Prices of new dwellings rose by 11.9% (8% inflation-adjusted) during the year to Q1 2019, sharply up from the previous year’s 2.3% y-o-y rise. During the latest quarter, prices of new dwellings increased 5.7% (4.4% inflation-adjusted).
Prices of existing dwellings rose by 5% (1.3% inflation-adjusted) in Q1 2019 from a year earlier, lower than the 9.7% y-o-y growth in Q1 2018. Quarter-on-quarter, existing house prices increased 1.1% (-0.1% inflation-adjusted).

The almost zero interest rates on bank deposits have encouraged people to invest in real estate, and also encouraged purchases of pre-construction residential property.

Despite strong demand, construction activity remains low. In the second quarter of 2019, newly built dwellings fell by 1.5% to 2,250 units from the same period last year, following annual declines of 3% in 2018 and 10.3% in 2017, according to the NSI.

Despite strong demand, construction activity remains low. In the second quarter of 2019, newly built dwellings fell by 1.5% to 2,250 units from the same period last year, following annual declines of 3% in 2018 and 10.3% in 2017, according to the NSI.

From 2000 to 2008, Bulgaria had a house price boom, with residential property prices surging around 300%. The bubble burst at the end of 2008. The housing market started to recover in 2014 and house prices have been rising since.

Demand for properties in the major cities continues to grow, and supply is increasingly limited by low levels of new construction.
“The shortage in the supply of completed projects continued during the [first half of 2019]. As a result, 60% of the residential units under construction were pre-sold,” said Colliers International.
Bulgaria’s economy is expected to expand by 3.3% this year and by 3.4% in 2020, after expansions of 3.1% in 2018 and 3.8% in 2017 and annual average growth of 1.2% from 2009 to 2016, according to the European Commission.
European Union citizens can purchase properties in Bulgaria, including land. Before January 2012 foreigners could purchase land only in the name of a legal entity and were not allowed to own a property.
Local house price variations
All Bulgaria’s major cities saw robust house price rises during the year to Q1 2019.

• Sofia, Bulgaria’s capital, saw an overall house price increase of 9.5% y-o-y in Q1 2019. Prices for new dwellings rose strongly by 18.6% while existing dwellings saw a price increase of 5.3%.

• In Plovdiv, the second largest city in Bulgaria, saw house price rises of 7.1% during the year to Q1 2019. Prices of new dwellings increased by 12.6% while existing dwelling prices rose by 3.9%.

• Varna, the largest city and seaside resort on the Black Sea Coast, recorded an overall house price rise of 4.1% during the year to Q1 2019. Over the same period, prices of new dwellings rose by 1.5% while existing dwelling prices increased 5.5%.

• In Burgas, overall house prices rose by 8% during the year to Q1 2019. New dwelling prices rose by 9.6% while existing dwelling prices increased 5.6%.

• In Ruse, overall house prices rose by 3.3% in Q1 2019 from a year earlier. New dwelling prices increased 4.6% while existing dwelling prices rose by 3.1%.

• In Stara Zagora, overall house prices increased 4.4% y-o-y in Q1 2019. New dwelling prices surged by 9% while existing dwelling prices rose by 2.9%.

Most sought-after locations in Sofia

Sofia, Bulgaria’s capital city, remains one of the most preferred locations in the country. In H1 2019, the average sales price ranged from €145,000 to €180,000 for two-bedroom apartments and from €210,000 to €250,000 for three-bedroom apartments, according Colliers International. Prices of houses start at €450,000.

Sofia’s Southern districts are currently experiencing strong interest from both locals and foreign buyers. In Lozenets and the city center, demand remains high despite that fact that these locations have the highest property prices in the country, ranging from €1,500 to €2,000 per sq. m. Strelbishte and Gotse Delchev are also preferred neighbourhoods with property prices between €1,100 and €1,400 per sq. m.

The Krastova Vada and Hladilnika districts, particularly along the Cherni Vrah Boulevard and around the Paradise Center shopping mall, are also popular because of their amenities, trade centres, improved infrastructure, proximity to Vitosha Mountain and the future opening of metro stations. The average residential property price in Kraskova Vada currently stand at about €1,200 per sq. m.

Other districts in demand include Studentski Grad and Vitosha because of the availability of newly-built homes at affordable prices. The average price of dwellings in Vitosha is currently at €1,100 per sq. m. while it is €1,000 per sq. m. in Studentski Grad. Manastirski Livadi, Mladost and Vrabnitsa districts are also popular with average house prices ranging from €800 to €1,100 per sq. m.

In Sofia, there were 5,641 property sales in Q1 2019, up slightly from a year earlier, according to the Registry Agency.

Ski resorts led sales growth

Bansko in southwestern Bulgaria, gateway to numerous ski and snowboard slopes on Todorka Peak, saw double-digit increase in property transactions during 2018.

The other two big ski resorts in the country, Pamporovo and Borovets, also recorded strong increases in sales volumes of at least 10% in 2018 from a year earlier.

“This shows that the ski resort property market in Bulgaria is already active all-year-round, and during the summer months there is a particularly high demand for property to buy,” said Polina Stoykova, the Executive Director of Bulgarian Properties.

“The main reasons for the increasing attractiveness of the properties in the ski resorts are the attractive prices on one hand, which are the best in Europe, and on the other hand - the improving infrastructure, the easy and fast access from the big cities, the accumulated experience in the management and maintenance of the complexes and above all - the ski resorts in Bulgaria have turned into all-year-round resorts,” Stoykova added.

Only about 40% of property buyers in Bansko are Bulgarians and the rest are foreigners. This is in contrast to Borovets and Pamporovo where almost all buyers are Bulgarians who live in Sofia and other major cities.

Investors are looking for investments that provide capital gains and rental returns. Holiday homes in ski resorts are now considered attractive as rental income investments. Most properties are purchased for cash.

Construction still way below peak, and falling

From 2005 to 2011, 16,700 dwelling units were completed every year. Construction peaked in 2009 when dwellings completed exceeded 22,000 units. However completions then fell sharply, and in 2018 only 8,136 units were built - a similar low level to previous years since 2010.

In the second quarter of 2019, newly built dwellings fell by 1.5% to 2,250 units from the same period last year, following annual declines of 3% in 2018 and 10.3% in 2017, according to the NSI. Likewise, dwelling starts also dropped 8.8% y-o-y to 5,650 units in Q2 2019.

Interest rates continue to fall

The average mortgage interest rate for BGN-denominated loans fell to a record low of 3.09% in July 2019, from 3.38% in a year earlier, according to the Bulgarian National Bank. Similarly, the average mortgage rate for euro-denominated loans also fell to a record low of 3.34% in July 2019, from 3.72% a year ago.

For BGN-denominated loans, in July 2019:

• Interest rate fixation (IRF) of up to 1 year: 3.09%, down from 3.38% a year earlier
• IRF over 1 and up to 5 years: 2.82%, slightly down from 2.88% a year ago
• IRF over 5 and up to 10 years: 3.59%, slightly up from 3.51% a year ago
• IRF over 10 years: 3.4%, down from 3.6% a year earlier

For Euro-denominated loans, in July 2019:

• IRF of up to 1 year: 3.3%, down from 3.64% a year earlier
• IRF over 1 and up to 5 years: 5.04%, up from 3.53% a year earlier
• IRF over 5 and up to 10 years: 3.03%, down from 3.81% a year ago
• IRF over 10 years: 5.01%, down from 5.93% a year ago

Small mortgage market

Bulgaria’s mortgage market is now showing signs of improvement, after several years of decline. In July 2019, there were about BGN353 million (€180.5 million) new housing loans drawn, up almost 32% from the same period last year. More than 94% of the new housing loans are BGN-denominated loans, with IRF of up to 1 year.

Total outstanding housing loans increased strongly by 11.8% to BGN 11.13 billion (€5.7 billion) in Q2 2019 from the same period last year, according to the Bulgarian National Bank.

In 2018, the size of the mortgage market expanded slightly to 9.8% of GDP, up from 9.4% of GDP in 2017 but still down from 11.7% of GDP in 2010.

The mortgage market experienced massive expansion during the boom years from just 0.38% of GDP in 2000.

Rental yields are moderately good

Sofia has moderate to good gross rental yields - i.e., the rental return on a property if fully rented out, before all expenses. Yields in the centre were around 6% in 2018, almost unchanged from a year earlier, based on recent Global Property Guide research. Yields a little further out are similar.

Doctor’s Garden, Ivan Vazov, Iztok and Lozenets are among the most sought after addresses in the centre. Embassies, museums and universities are located here. These areas also have many parks and green spaces, making them popular with expats.

In the southern part of Sofia in Vitosha Mountain (or in the vicinity) are prestigious suburban neighborhoods like Boyana and Dragalevtsi. Though new developments being built here are increasing the stock of rental apartments, we find better yields here on the very smallest apartments, with yields stretching up to 6.4%.

The Global Property Guide was not able to provide yields in Bulgaria’s beach and ski areas, because rents in these areas are highly seasonal.

Transaction costs in Bulgaria are moderate, and more or less evenly split between buyer and seller.

In H1 2019, the average monthly rent ranged from €950 to €1,200 for two-bedroom apartments in Sofia and from €1,300 to €1,600 for three-bedroom apartments, according Colliers International. Rents for houses start at €2,000 per month.

Robust economic growth, improving finances

In Q2 2019, Bulgaria’s economy expanded by 3.5%, following y-o-y growth of 3.5% in Q1 2019, 3.2% in Q4 2018, 3.1% in Q3 2018 and 3.4% in Q2 2018, according to the NSI.

In Q2 2019:

• Domestic consumption rose by 2.6% y-o-y, following a 4.5% growth in Q1 2019
• Gross fixed capital formation rose by 2.2% y-o-y, slightly down from 2.5% growth in the previous quarter
• Exports increased 3.7% y-o-y, down from a 5.1% rise in Q1 2019
• Imports fell by 2% y-o-y, in contrast to a 3.9% increase in the previous quarter

Bulgaria’s economy is expected to expand by 3.3% this year and by 3.4% in 2020, after expansions of 3.1% in 2018 and 3.8% in 2017 and annual average growth of 1.2% from 2009 to 2016, according to the European Commission.

The country recorded a budget surplus of 2% of GDP in 2018. It was the country’s third consecutive year of budget surplus since 2008. During the first half of 2019, the country recorded a budget surplus of BGN3.23 billion (€1.65 billion), equivalent to 2.8% of this year’s estimated GDP.

Inflation was 2.9% in August 2019, unchanged from the previous month but down from 3.5% a year earlier, based on figures from the NSI. Consumer prices are expected to increase by about 2.4% this year, after inflation of 2.6% in 2018 and 1.2% in 2017 and deflations of 1.3% in 2016, 1.1% in 2015 and 1.6% in 2014, according to the IMF.

Unemployment stood at 4.2% in Q2 2019, down from 5.5% a year earlier, according to the NSI. Unemployment is expected to fall to 5% this year, the lowest level since 1990, based on IMF projections.

Source: https://www.globalpropertyguide.com

November 4 (BTA) - In July-September 2019, local
administrations issued construction permits for 1,630
residential buildings with 9,018 dwellings in them and a gross
building area of 1,110,322 sq m, show data released by the
National Statistical Institute on Monday. Compared to the
previous quarter of the year, this is an increase by 2.5 per
cent of the number of permits, by 6.6 per cent of the dwellings
in them, and by 3 per cent of the gross building area.

The third quarter of 2019 saw the issue of construction permits
for 23 administrative buildings/offices with a gross building
area of 58,419 sq m, down by 25.8 per cent and 6 per cent,
respectively, compared to the previous quarter of the year.
Local administrations also issued construction permits for 1,188
 other buildings with a square building area of 694,726 sq m,
which is an increase by 1.7 per cent and 18 per cent,
respectively, from June-August 2019.

Compared to the third quarter of 2018, in July-September 2019
local administrations issued by 1.7 per cent fewer construction
permits for residential buildings with 4.3 per cent fewer
dwellings in them and 5.4 per cent smaller gross building area.
The number of permits for administrative buildings and their
gross building area dropped by 37.8 per cent and 72.5 per cent,
respectively. The number of permits for other buildings
decreased by 1.6 per cent and their gross building area, by 1.8
per cent.

The highest number of construction permits for residential
buildings in the third quarter of 2019 were issued in the
regions of: Sofia-capital (263 buildings), Varna (203), Plovdiv
(187), Sofia (132), and Blagoevgrad (111). The highest number of
 new dwellings will begin to be built in Sofia-capital (3,839),
Varna (1,385), Plovdiv (859), Bourgas (646), and Kurdzhali
(521).

The third quarter of 2019 saw the beginning of construction
works on 1,156 residential buildings with 7,021 dwellings in
them and a gross building area of 908,670 sq m, 13
administrative buildings/offices with a gross building area of
12,301 sq m, and 666 other buildings with a gross building area
of 390,746 sq m. Compared to the previous quarter of 2019, the
number of new residential buildings under construction dropped
by 3.9 per cent, but the number of dwellings in them and their
gross buildings area grew by 24.3 per cent and 25.2 per cent,
respectively. The number of new administrative buildings under
construction and their gross building area dropped by 45.8 per
cent and 58.9 per cent, respectively. The number of other new
buildings under construction increased by 7.1 per cent, but
their gross building area dropped by 14.7 per cent.   

Compared to July-September 2018, in the third quarter of 2019
construction began of 11.4 per cent fewer residential buildings
with 18.6 per cent fewer dwellings in them and 36.2 per cent
smaller gross building area, of 84.9 per cent fewer
administrative buildings with 84.9 per cent smaller gross
building area, and of 4.4 per cent more other buildings with
12.9 per smaller gross building area.

The highest number of new buildings that began being built in
the third quarter of 2019 was registered in the regions of:
Plovdiv (200 residential and 67 other buildings), Sofia-capital
(198 residential, 3 administrative, and 28 other buildings),
Varna (138 residential and 37 other buildings), Sofia (83
residential and 51 other buildings), and Stara Zagora (58
residential and 61 other buildings).

Source: http://www.bta.bg

About 30% of new homes are purchased with credit. This is according to data from the The National Association of Building Contractors. According to Desislava Petrova from one of the companies, members of the association, 70% of the transactions in the segment are two-room, most of them being acquired for investment. According to her, the three-bedroom apartment is dominated by the number of properties bought for its own use.

"The buyers of the rental apartments are people from small towns in the country or Bulgarians living abroad. Most of them decided to invest their money in real estate in the country, with the majority of Bulgarians currently residing in the UK. Smaller homes are most often bought from young families over the age of 25, and the larger ones by people between the ages of 35-40, " she explained. 

A large percentage of the people who are looking to buy a property are heading for new construction, which is why almost 100% of the projects are sold before obtaining a permit for use.

“The demand in Sofia remains largely in the southern regions again. Currently, there is new construction on the market, but no over-supply. Last year, about 15,000 building permits were issued, but the projects which were actually started are 8,000, " she explained. "Buyers are increasingly paying attention to service spaces. Nearly 80% of clients require storage space and an extra room for washer and dryer when looking for a new home. This need is directly related to the everyday comfort, especially for families with children, ” Desislava Petrova adds. According to her, clients are more and more interested in the common spaces of the building - they want to take a look at some of the already built buildings of the investor so that they know what they can expect for their future new home.

Source: https://www.novinite.com

Bulgaria returns to the top 10 of the overseas property buying sites in 2019 in the UK aplaceinthesun.com rating platform, quoted by the newspaper "Bulgarian News". Bulgaria ranked ninth place in the chart preceded by Turkey, Florida, Cyprus, Italy, Greece, Portugal, France and Spain. Barbados, also a new country on the list, ranked the tenth place.

"It may be the European Union’s poorest country but Bulgaria is rich in property opportunities. Up to 10,000 UK citizens call this Balkan nation home. Many bought during the early noughties boom years when properties could be snapped up for bargain-basement prices. Developers along the country’s 230-mile Black Sea coast and high up in its emerging ski resorts went wild, snapping up seemingly every spare acre of land to build myriad apartment blocks." That's how the article "Time for a New Look at Bulgarian Properties in 2019?" published in aplaceinthesun.com begins. At the moment there are 2434 properties available in Bulgaria.

“A small percentage of British buyers are still looking to buy properties at bargain prices or purchase houses with the intention of moving to Bulgaria permanently,” says Ben Collins of Collins Estates, which specialises in the resale market along the Black Sea coast.

Source: https://www.novinite.com

The Bulgarian property market has really grown over the last few years. In 2017 alone, home prices in all the major cities in Bulgaria went up by 10% on an average, much faster the average in the Eurozone (4.6%).

The data from Eurostat show hat Bulgaria is the seventh fastest growing property market in Europe, just behind Czech Republic, Ireland, Portugal, Hungary, the Netherlands and Latvia.

Indeed, there is good money to be made if you want to sell property in Bulgaria online in 2018. Home prices in Sofia, one of the least expensive capital cities in Europe have gone up to 1000 euros per sq. meter and in some cases, 1300 euros per sq. meter.

That is the same as the peak price levels last seen in the 2007 period, just before there was a property crash across Europe, including in Bulgaria. Now, Bulgarian property market has made up for the lost momentum and things are looking better than ever.

There are two reason why Bulgaria’s property market has been doing so well. Bulgaria had a reputation as a third world country in Europe – it was one of the poorest countries in the Eurozone.

Things have changed since then – Bulgarian economy is flourishing and growing at 3.3% every year, one of the fastest growing economies in the region. Unemployment is at a historic low and business activity is up. People have higher disposable incomes than before.

Another big change is that Bulgaria has emerged as a popular tourist destination. Over 9 million foreign tourists visited Bulgaria in 2017, and 8 million visited in 2016. Some of the places in Bulgaria such as Sunny Beach, a popular resort on the Black Sea Coast and Bansko, a top-rated ski destination, attract millions of tourists from across Europe every year. Sofia, the capital city of Bulgaria, is also quite popular with both holiday and business travellers.

A fast growing economy and a flourishing tourism sector are always good for a country that wants to emerge as a top overseas destination. Another factor that has helped Bulgaria is that it is a politically stable country and a peaceful one, in a region that has been hit by political uncertainty, economic crisis and authoritarianism.

Indeed, more and more foreign investors are now looking to invest in Bulgaria rather than in the neighbouring Turkey, which has been hit by a vicious strain of authoritarian politics under President Tayyeb Erdogan. Bulgaria appears to be a better alternative to another of its neighbours, Greece, which is still struggling to get out of a severe economic crisis.

However, the Bulgarian National Bank has warned about the property market getting ahead of itself. They have advised caution largely because of the high indebtedness of Bulgarian businesses and households.

The European Commission has also warned about the imbalances in the Bulgarian economy. Regardless, the fast rising economy and emergence of Bulgaria as a hub of tourism certainly indicate that property prices will be on the rise for years to come.

Source: http://www.cash4overseasproperty.com

After almost five years of stagnation, Bulgaria’s house prices are now rising rapidly, thanks to falling interest rates and strong economy.

The nationwide house price index rose by 8.59% (6.55% inflation-adjusted) during the year to Q2 2017, from y-o-y rises of 8.98% in Q1 2017, 8.11% in Q4 2016, 8.8% in Q3 2016 and 6.55% in Q2 2016, according to the National Statistical Institute (NSI). During the latest quarter, house prices increased 2.41% (2.53% inflation-adjusted) in Q2 2017.

• Prices of new dwellings rose by 7.32% (5.3% inflation-adjusted) during the year to Q2 2017, an improvement from the previous year’s 4.9% y-o-y rise. During the latest quarter, prices of new dwellings fell slightly by 0.82% (-0.69% inflation-adjusted).
• Prices of existing dwellings surged 9.2% (7.15% inflation-adjusted) in Q2 2017 from a year earlier, higher than the 7.48% y-o-y growth in Q2 2016. Quarter-on-quarter, existing house prices increased 4.16% (4.29% inflation-adjusted).

The almost zero interest rates on bank deposits have encouraged people to invest in real estate, and also encouraged purchases of pre-construction residential property.

“Increased activity, including the summer months, increasing volumes of sales, stabilized prices and constantly increasing interest by Bulgarian buyers - these are the main trends for the year that is soon to come to its end,” said Polina Stoykova, the Executive Director of Bulgarian Properties.

From 2000 to 2008, Bulgaria had a house price boom, with residential property prices surging around 300%. The bubble burst at the end of 2008:

• In 2009, Bulgaria’s average dwelling price plummeted by 25.72% (-26.14% inflation-adjusted);
• In 2010, the average dwelling price fell by 4.96% (-9.08% inflation-adjusted);
• In 2011, the average dwelling price fell by 5.81% (-8.33% inflation-adjusted);
• In 2012, the average dwelling price fell by 1.3% (-5.33% inflation-adjusted);
• In 2013, the average dwelling price fell 1.2% (increased 0.4% when adjusted for inflation);
• In 2014, the average dwelling price increased 2.78% (3.69% inflation-adjusted);
• In 2015, the average dwelling price increased 3.98% (4.37% inflation-adjusted);
• In 2016, the average dwelling price rose by 8.11% (8.01% inflation-adjusted.

Bulgaria’s property market is projected to remain strong in the medium term. Demand for properties in the major cities continues to grow, and supply is increasingly limited by low levels of new construction.

Bulgaria’s economy is expected to expand by 3.6% this year and by another 3.2% in 2018, from growth rates of 3.4% in 2016, 3.6% in 2015, and an annual average growth of just 1.1% from 2010 to 2014, according to the International Monetary Fund (IMF).

European Union citizens can now purchase properties in Bulgaria, including land. The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted in January 1, 2012.

Previously, foreigners could purchase land only in the name of a legal entity and were not allowed to own a property. The lifting of the ban now gives European citizens the right to own property as individuals.

Local house price variations

All Bulgaria’s major cities saw rising house prices.

• Sofia, Bulgaria’s capital, saw an overall house price increase of 10.6% during the year to Q2 2017. Prices for new dwellings rose strongly by 13.5% while existing dwellings saw a price increase of 9.4%.
• Varna, the largest city and seaside resort on the Black Sea Coast, saw the biggest house price rise of 13.9% during the year to Q2 2017. Over the same period, prices of new dwellings surged 14.9% while existing dwelling prices rose 13.5%.
• In Plovdiv, overall house prices rose by 6.7% y-o-y in Q2 2017. Prices of existing dwellings increased by 8.1% while new dwelling prices rose by 4.1%.
• In Burgas, overall house prices increased by a modest 4% during the year to Q2 2017. Existing dwelling prices rose by 13.4% while new dwelling prices fell by 1.7%.
• In Ruse, overall house prices rose by 12.8% during the year to Q2 2017. Existing dwelling prices increased 15.2% while new dwelling prices fell slightly by 0.3%.
• In Stara Zagora, overall house prices increased 8.9% y-o-y in Q2 2017. New dwelling prices skyrocketed by 17.6% while existing dwelling prices rose by 6.1%.

Most sought-after locations in Sofia

In Sofia, Bulgaria’s capital city, the average property price stood at €1,060 per square meter (sq. m.) in Q3 2017, unchanged from the previous quarter but up by 14% a year earlier, according to Bulgarian Properties. Currently, the average purchase price of dwellings in Sofia is €93,000.

Sofia’s Southern districts are the most preferred location. In Lozenets and the city center, demand remains high despite that fact that these locations have the highest property prices in the country, ranging from €1,400 to €1,800 per sq. m. Strelbishte and Gotse Delchev are also preferred neighbourhoods with property prices between €1,100 and €1,300 per sq. m. in Q3 2017.

The Krastova Vada and Hladilnika districts, particularly along the Cherni Vrah Boulevard and around the Paradise Center shopping mall, are also popular because of their amenities, trade centres, improved infrastructure, proximity to Vitosha Mountain and the future opening of metro stations. The average residential property price in Kraskova Vada stood at €1,130 per sq. m. in Q3 2017.

Other districts in demand include Studentski Grad and Vitosha because of the availability of newly-built homes at affordable prices. The average price of dwellings in Vitosha was €1,060 per sq. m. in Q3 2017 while it was €960 per sq. m. in Studentski Grad. Manastirski Livadi, Mladost and Vrabnitsa districts are also popular with average house prices of €1,095, €990 and €800 per sq. m., respectively.

Ski resorts led sales growth

Bansko, a town located in southwestern Bulgaria and a gateway to numerous ski and snowboard slopes on Todorka Peak, registered the biggest growth in property sales in Bulgaria, with transactions surging by almost 30% in Q3 2017, according to Bulgarian Properties.

The other two big ski resorts in the country, Pamporovo and Borovets, also recorded strong increases in sales volumes of 18% and 5%, respectively.

“This shows that the ski resort property market in Bulgaria is already active all-year-round, and during the summer months there is a particularly high demand for property to buy,” said Stoykova.

“The main reasons for the increasing attractiveness of the properties in the ski resorts are the attractive prices on one hand, which are the best in Europe, and on the other hand - the improving infrastructure, the easy and fast access from the big cities, the accumulated experience in the management and maintenance of the complexes and above all – the ski resorts in Bulgaria have turned into all-year-round resorts,” Stoykova added.

Only about 40% of property buyers in Bansko are Bulgarians and the rest are foreigners. This is in contrast to Borovets and Pamporovo where almost all buyers are Bulgarians who live in Sofia and the other major cities.

Investors are looking for investments that provide capital gains and rental returns. Holiday homes in ski resorts are now considered attractive as rental income investments. Most properties are purchased for cash.

In Sofia, property sales also increased by a modest 3.75% y-o-y to 6,300 units in Q3 2017. The most purchased apartments in the capital city are located in the districts of Krastova Vada, Manastirski  Livadi, Mladost 4, Studentski Grad and Vitosha.

Construction still way below peak, and falling

From 2005 to 2011, 16,700 dwelling units were completed every year. Construction peaked in 2009 when dwellings completed exceeded 22,000 units. However, completions fell sharply to an average of 9,700 units from 2012 to 2014 and in 2015 completions fell sharply to 7,800 units, according to the National Statistical Institute (NSI). In 2016, dwelling completions increased by 19.7% y-o-y to 9,342 units.

In Q3 2017, newly built dwellings fell again by 15.2% to just 2,018 units from the same period last year.

There were 3,943,989 dwelling units in Bulgaria in 2016, up slightly by 2% from a year earlier. The Southwest region accounted for about 28.2% of the total housing stock, followed by the South Central region (with 18.1% share), Southeast region (15.9%), Northeast region (13%), Northwest region (12.9%) and North Central region (11.9%).

Interest rates continue to fall

Interest rates in Bulgaria continue to decline. The average mortgage interest rate for BGN-denominated loans fell to a record low of 3.87% in October 2017, from 4.62% in a year earlier, according to the Bulgarian National Bank. Likewise, the average mortgage rate for Euro-denominated loans dropped 4.08%, from 5.12% a year ago.

For BGN-denominated loans, in October 2017:

• Interest rate fixation (IRF) of up to 1 year: 3.86%, down from 4.62% a year earlier
• IRF over 1 and up to 5 years:  3.81%, down from 4.64% a year ago
• IRF over 5 and up to 10 years: 4.43%, up from 4.27% a year ago
• IRF over 10 years: 4.53%, up slightly from 4.43% a year earlier

For Euro-denominated loans, in October 2017:

• IRF of up to 1 year: 4.05%, down from 5.12% a year earlier
• IRF over 1 and up to 5 years: 4.36%, down from 4.98% a year earlier
• IRF over 5 and up to 10 years: 4.65%, up from 5.07% a year ago
• IRF over 10 years: 4.67%, down from 5.24% a year ago

Small mortgage market

Bulgaria’s mortgage market has been gradually declining in the past six years, from 11.65% of GDP in 2010 to just 9.47% of GDP in 2016. But this came after massive expansion during the boom years from just 0.38% of GDP in 2000.

This expansion may soon resume. There were BGN267.1 million (€136.6 million) new housing loans in October 2017, up 39% from the same period last year. About 91% of the new housing loans are BGN-denominated loans, with IRF of up to 1 year.

Total outstanding housing loans increased 6.4% to BGN9.33 billion (€4.77 billion) in October 2017 from the same period last year, according to the Bulgarian National Bank.

Rental yields are moderately good

Sofia has moderate to good gross rental yields - i.e., the rental return on a property if fully rented out, before all expenses. Yields in the centre were around 6% in August 2017, almost unchanged from a year earlier, based on recent Global Property Guide research. Yields a little further out are similar.

Doctor’s Garden, Ivan Vazov, Iztok and Lozenets are among the most sought after addresses in the centre. Embassies, museums and universities are located here. These areas also have many parks and green spaces, making them popular with expats.

In the southern part of Sofia in Vitosha Mountain (or in the vicinity) are prestigious suburban neighborhoods like Boyana and Dragalevtsi. Though new developments being built here are increasing the stock of rental apartments, we find better yields here on the very smallest apartments, with yields stretching up to 6.4%.

The Global Property Guide was not able to provide yields in Bulgaria’s beach and ski areas, because rents in these areas are highly seasonal.

Transaction costs in Bulgaria are moderate, and more or less evenly split between buyer and seller. 

Economic growth, budget surplus

European Commission. In Q3 2017, Bulgaria’s economic growth accelerated to 3.9% compared to a year earlier, from 3.7% in the prior quarter and 3.4% in the previous year, according to the NSI.

The budget surplus was 1.6% of GDP this year, in sharp contrast to a deficit of 2.8% of GDP in 2015 and 3.7% of GDP in 2014. It was the country’s first budget surplus since 2008. During the first nine months of 2017, the country recorded a consolidated budget surplus of BGN2.42 billion (€1.24 billion), which is equivalent to 2.4% of this year’s estimated GDP.

Consumer prices are expected to increase by about 1.1% this year, after deflations of 1.3% in 2016, 1.1% in 2015 and 1.6% in 2014, according to the IMF.

Unemployment stood at 6.7% in October 2017, down from 8% in 2016 and an average of 11% from 2012 to 2015, according to the NSI. Unemployment is expected to be 6.4% this year, according to the European Commission.

Source: https://www.globalpropertyguide.com

Household prices in Bulgaria registered one of the biggest increases in the first quarter in the European Union on an annual basis - 8.8%. This shows latest Eurostat data released on Wednesday. Reports Investor. 

Thus our country ranks fifth in the ranking, with the Czech Republic having a 12.7% increase. Lithuania followed by Lithuania (10.2%), Latvia (10.1%) and Ireland (8.9%).

The statistics show that in the last few years there has been a steady rise in house prices in Bulgaria after it was only 0.7% in the first quarter of 2014. Though prices fell slightly in the fourth quarter of last year, they went up again in the first three months of 2017. Overall, house prices in the European Union grew by 4.5% in the first quarter. The increase in the Euro zone is slightly lower - 4.0%.

Source: http://www.novinite.com

In six months alone, real estate prices in Bulgaria have jumped by 12%, showed data of the Association of Real Estate Brokers.

In Sofia, the average price is about EUR 1,000 per sq m. There is growing interest in deals in new construction real estate.

Broker Iliyana Vasileva explained that real estate property of up to 60 sq m is most sought after and people purchase such properties in order to invest and lend these. After a certain slump in the market, now there is a deficit in supply:

“Since the beginning of the year, there has been a deficit in the supply of quality real estate in all segments. We are not just talking about small apartments! Let’s say a nice, brick, three-room apartment with a garage. There is no choice and no supply of such offers,” said Vasileva.

This is why ¼ of the buyers are targeting deals in new construction properties.

Source: http://www.novinite.com

Austrian wood-based panels manufacturer Kronospan is to expand its production facilities in the northern Bulgarian city of Veliko Tarnovo, Capital.bg reports.
Apart from adding a particle board streamline, it will start the production of medium-density fibreboard (MDF), which has never been made in Bulgaria as of the moment.
An investment plan worth BGN 300 M has already been launched by the company, which also plans to create a zone where furniture manufacturers using particle board made by Kronospan will be able to set up production sites, the website says.
The step will cut logistics expenses of investors using materials from the Austrian company, the latter argues.
Kronospan runs two plants in Bulgaria, one in Veliko Tarnovo and another in Burgas, giving employment to some 400 people. The expansion is expected to add 100 jobs and may create hundreds more in affiliated industries.

Source: http://www.novinite.com

It is time for Bulgaria to position itself on the main European and non-European markets as an four-season tourism destination, the head of a key tourism think-tank has said.

Rumen Draganov, who heads the Institute for Analysis and Assessment of Tourism, has told Focus Radio that that, while the winter tourist season is becoming ever more intensive and "interesting" with BGN 970 M expected this year, "we can now speak of an autumn and spring tourist season" as well.

The winter season in Bulgaria always brings much lower revenues compared to the summer, whose contribution to tourism earnings is three times as much, Draganov has added.

He has predicted that SPA and golf tourism, working with better-off customers, may be in for a "big future".

"Bulgaria needs five airports that will secure regular charter flights and also ones of low-cost airliners to our country," Draganov has argued.

His words come a week after the Tourism Ministry announced that for the first time ever Bulgaria is expected to draw in more tourists that the number of its population.

Minister Nikolina Angelkova put the early estimates for 2016 at 8 million, in a country of 7.1 million. However, data suggests Bulgaria also had a bigger number of foreign tourists that of locals in 2014 and 2015, when the figure of arrivals was 7.2 million and 7.3 million respectively.

Source: http://www.novinite.com

2016 is expected to be the most successful year for the tourism industry in the last 25 years, announced in Plovdiv Tourism Minister, Nikolina Angelkova.

In June and July alone, the number of tourists who came to Bulgaria increased by 23.1%, compared to the previous year. In terms of revenues for the same period, the increase is about 14% (BGN 1 B).

For the first 7 months of the year, revenues were 13-14% more, compared to 2015, added Angelkova. Compared to the most successful year so far – 2014, growth is already 14%, which makes 2016 the most successful year, especially with respect to the summer when expectations almost doubled.

Growth is most noticeable where German tourists are concerned. Their number grew by 38%. Russia ranks second – the increase in the number of tourists was 30%. According to the statistics, the highest growth was reported with respect to Romanian tourists – the expectations of 5% quadrupled.

According to Angelkova, the most important thing is that Bulgaria is headed in the right direction i.e. turning into an all year round destination.

Source: http://www.novinite.com

The number of completed housing projects in Bulgaria rose by 3.2% year-on-year in the second quarter of 2016, reaching 521, the country’s statistical office NSI announced on Monday.

The number of dwellings in newly built residential buildings increased by 15.6% on the year to a total of 2,248 for the period April-June 2016, the NSI said in a statement citing preliminary data.

Newly built dwellings with two rooms were 39.1% of the total in the second quarter of 2016, followed by dwellings with three rooms with a share of 27.9%.The number of dwellings with six and more rooms had the lowest share among newly built dwellings - 2.7%

Houses comprised 72.6% of all housing projects completed and ready for use in the second quarter of 2016,followed by blocks of flats with a share of 15.3%.

Plovdiv Region led in terms of the number of residential buildings completed in the second quarter (81) followed by Burgas (80) and Varna (79), the NSI said in a statement.

Source: http://www.novinite.com

1. 1. When was the last time you went to a beach this scenic?

Sinemorets, Bulgaria

2. Or a city this luminous?

@Stoyan Stoyanov

Plovdiv, Bulgaria

3. When did you last see a mountain this majestic?

@Stoyan Stoyanov

Kardzhali Dam

4. Or a vision this magical?

@Flaviya / Shutterstock

Bolata beach

5. When have you ever explored an otherworldly cave?

9 . When have you been to The World’s Sixth Oldes Town ?

Plovdiv

10. Or entered the depths of the Arda river ?

@mapio.net

Arda river

11. When has a sunset made you feel at home?

Sozopol

12. Or a statue made you feel welcomed?

@evgenidinev.com

Haskovo

13 .When have you seen a city shine this brightly?

@.evgenidinev.com

Zlatograd

14. Or experienced a neighborhood this close-knit?

Veliko Turnovo

15. When you have seen wildlife this colorful?

@Bogdan Boev

16. Or been to a castle like this?

Castle of Ravadinovo

17. When have you ever gotten down at Festival?

Jeravna

18. Or strolled past endless miles of vineyards?

19 . When have you eaten your weight in some of the best food in the world?

20. Or seen a monastery this artistic?

Rila Monastery

21. When have you visited Bulgaria?

@Dobromir Rainov

Start packing your bags.

Source: http://visitmybulgaria.com

The number of new residential buildings completed in Bulgaria in the first quarter of 2016 was little changed on an annual basis, while the number of dwellings in them has jumped by more than 60%, official statistics showed on Wednesday.

Acording to preliminary data, a total of 543 new residential buildings were completed in the first quarter of 2016, an increase of 1.1% over the same period last year, the National Statistical Institute said in a quarterly survey on Wednesday.

The number of dwellings in completed new buildings, however, has increased by 62.9% on the year in the period January-March 2016, reaching 2,291.

Houses accounted for 71% of new residential buildings completed in the first quarter of 2016, followed by blocks of flats with 17%. As compared to the first quarter of 2015 an increase of the number of newly built blocks of flats was observed, the NSI said.

Burgas, Varna and Plovdiv led the list of Bulgarian regions with the largest number of new  residential buildings completed in the first quarter of the year.

Newly built dwellings completed in the first quarter of 2016 had total useful space of 192,400 square meters (sq.m.), an annual increase of 45.4%. The living floor space increased by 44.6%, reaching 122,300 sq. m.

Two-room dwellings had the highest share among new residential buildings completed in the first quarter (37.3%), followed by three-room dwellings (29.3%).

Source: http://www.novinite.com/

I’m laden with juicy fat cherries, freshly plucked from the tree. The sun shines and we’re picnicking among spangles of wild flowers and long grasses. A track steers back to the wood-beamed house where we are staying, past mud-and-timber houses tilting back into the earth.

I’m with my husband Mark and two children in a tiny hillside hamlet called Baba Stana, close to the village of Oreshak, in the heart of central Bulgaria’s Balkan mountains. It’s peaceful and bucolic, and far from the cheap-and-cheerful skiing or beach packages Bulgaria is most known for.

Yet people don’t think to come for the mountain scenery with its world-class frescoes and monasteries, even though many are Unesco world heritage sites. Somehow rural Bulgaria doesn’t sound that appealing.

Having flown into the capital, Sofia, with its gold-domed Eastern Orthodox churches, we’d stayed in Casa Ferrari, a small friendly guesthouse. The city brims with layers of history all mixing together into everyday life – Bulgaria had to grapple its independence from the Ottoman Empire after the Turks ruled for half a millennium.

I walked down into the underground metro. It’s easy to use, and sections of preserved Roman streets can still be seen as you step off the escalators. Back at the top people strode among Roman amphitheatres and grand Stalinist architecture. From Sofia we’d corkscrewed up through Bulgaria’s mountainous landscape to Baba Stana. Road signs are in the Cyrillic alphabet and few people speak English, which makes navigating interesting. But the roads are easy to drive, with little traffic, although those you pass drive horrifyingly.

The hamlet is half-empty. Derelict houses stand next to lived-in ones, creating a strange sense of abandoned beauty. A local family is having breakfast alfresco, their children playing among barns that lean. Few people still live here, most having moved to urban areas. Occasionally ancient villagers wander past and give a smile in the absence of any shared language. The sound of hay being raked falls from terraced fields. Most of those who remain here work the land.

The view from our terrace stretches far over the hilltops, and a smattering of terracotta pantile roofs peep from the tree canopies. Cowbells and cicadas serenade us from flower-filled meadows; birds and butterflies skitter among plum trees. Our children are free to explore on their own, with no vehicles for me to worry about. The land is still riotously green, wild and untouched.

We buy our provisions from the few tiny shops at Oreshak, which have a cottage industry in ceramics. It also has one unexpected visitor attraction: the charmingly quirky Cherni Ossum museum, created by a local biology teacher with taxidermied animals, many from the region. This delights our boys as they gaze up at bears towering over them.

What we didn’t expect to find was a modern hotel like the recently opened Casa Art. Small and stylish, it has a spa, individually decorated rooms, and a restaurant with an excellent sommelier. There is also a lot of funky colour and lively art.

We eat traditional Bulgarian dishes of dried meats, grilled fish and fresh shopska salad (a typical salad here with salted vegetables and cheese). “We are very proud of this hotel,” the sommelier tells us. “It’s unique.” The food is delicious and costs a fraction of what it would back at home.

But it’s the quiet, pastoral nature of the place that’s the real draw of the Bulgarian countryside. We are told that in the Balkan National Park, which contains Europe’s largest protected beech forest, wolves and bears (and golden eagles) roam among the mountains. We don’t see any of those, but exploring these vast wildernesses and swimming in nearby rivers is enough.

Driving through the mountains we pass villages where gardens burst with roses, and gypsies ride by on horse-drawn carts, beautiful bright pom-poms tied around the horses’ necks flaring out. A little further, at Chiflik, there are natural hot mineral springs with open-air pools. There are beautiful towns, too, reminders of when the country was part of one of Europe’s biggest and most powerful empires. In Lovech, steep cobbled streets lead up to a medieval fortress overlooking the River Osam. In Veliko Tarnovo, Bulgaria’s former capital, artists sit in the old town painting gilt icons on to slabs of dark wood. And Arbanasi’s Nativity Church rivals Romania’s best with its floor-to-ceiling frescoes.

Bulgaria has more than 100 monasteries, which hide in remote gorges or perch on hills. Outside the Trojan monastery, a 10-minute drive from Oreshak, home-produced honey and antique icons are laid out on vintage cars in an impromptu market. Monks wander around the wooden balconies under a spectacular portico painted with apocalyptic scenes.

Inside the monastery, amid the soft smell of incense, we come across a revered three-handed icon of the Virgin Mary. Queues of people move forward to touch her and leave banknotes at her feet. This is a land where the mountains are still rich with tradition and nature thrives.

Essentials

Rooms at Casa Art in Oreshak start at £25 per night. Rooms at Casa Ferrari in Sofia start at £46. City tours can be booked in Sofia with Lyuba Tours. Flights from Heathrow to Sofia were provided by British Airways. Bradt’s travel guide has useful information

Source: http://www.theguardian.com/travel/2016/may/08/bulgaria-mountains-and-monasteries-rural-holidays?CMP=twt_gu

Property consultants Cushman & Wakefield reported a record year for foreign investment in Bulgaria last year with real estate sales contributing €239 to the economy, predicting a continued rising demand throughout 2015.

After prolonged economic hardship following the global financial crisis, Bulgaria's property market remains at a huge discount to peak 2007 prices, attracting wealthy foreign investors with opportunities to acquire land and property at rock-bottom prices.

Apart from price, another dynamic property investors are interested in is tourism. Most foreign investors seek to take advantage of resort properties with excellent occupancy rates that ensure consistent rental revenue streams in a growing market. Bulgaria has risen through the ranks as one of Europe's most popular alpine resorts, offering exceptional value for family ski holidays and with plenty of breathtaking beaches the country has a whole lot more on offer besides.

Bulgaria enjoyed an extremely successful winter season that saw more than 80,000 visitors to its alpine resorts, boosting the nation's economy by €17.5m. According to the country's tourism minister Nikolina Angelkova, the number of visitors from Turkey increased by almost 30% as a result of the simplification of visa requirements while German tourists increased by around 17%.

At the beginning of August, budget flight operators Ryanair issued a press release that is set to boost Bulgaria's tourism and real estate sectors moving forward into 2016. The airline's Robin Kiely said: "Ryanair is pleased to announce a new daily London Stansted to Sofia route beginning May 2016 which will go on sale on www.ryanair.com in September. Sofia is another key capital city airport and our second in Bulgaria as we continue to grow Europe's largest route network, with more routes and flights and improved schedules".

Property prices in Bulgaria have also been buoyed by weak supply due to limited construction. This has impacted markets in the country's large cities and resort areas the most and with off-plan investment opportunities thin on the ground, prices look set to continue rising.

As a direct result of Bulgaria's fantastic winter season and the financial injection to its economy, property prices are forecast to stabilise as the economic recovery is consolidated. Modest price growth in both commercial and residential property sectors is expected throughout the year, matched by stable economic growth that will underpin investment in Bulgaria.

According to a report by real estate researchers Colliers International , foreign investors are expected to steadily increase their exposure in Bulgaria's commercial property market throughout 2014, depending on the availability of product for sale. Investor returns will continue to be driven by rental upside, discounts on existing debt and lower interest rates and strong income generating assets in Bulgaria's commercial occupational markets will continue to attract more investment capital.

Source: http://www.focus-fen.net

The World Bank has increased its forecast for Bulgaria’s economic growth in 2106 by 0.2 percentage points to 2.2%.

"The western part of Europe and Central Asia (ECA) region, which includes Bulgaria, Romania, Turkey, and the Western Balkans, should grow moderately in 2016, buoyed by recovery in the Euro Area, [...] where output is projected to expand by an average of 1.7% in 2016-17 with the support of accommodative ECB policies," the World Bank said in the January 2016 issue of its Global Economic Prospects report.

The World Bank's new growth forecast for Bulgaria is close to the revised projection of 2.1% increase of Gross Domestic Product (GDP) in 2016 made by the Bulgarian government last year.

On Tuesday, Bulgaria’s Prime Minister Boyko Borisov expressed his hope that the country’s economic growth rate would exceed government projections and reach 4.5%. 

In the report, the World Bank has also raised to 2.9% its estimate of Bulgaria’s GDP growth in 2015. This is an increase of 1.8 percentage points from June 2015 projections.

The Bank forecasts GDP growth of 2.7% for Bulgaria in 2017, unchanged from its June 2015 projection. Growth in 2018 is also forecast at 2.7%.

The Bulgarian government has projected economic growth of 2.5% for 2017 and 2.7% for 2018. 

Looking at Bulgaria and Romania, the World Bank says that investment in the two EU member states "is being supported by European Structural and Investment Funds, though absorptive capacity remains a challenge. In view of the heavy reliance on the banking sector to fund investment in the region, financial sector reforms can also play an important role in strengthening the capacity to intermediate credit, thereby boosting investment and job creation".

Source: http://www.novinite.com

Activity in Bulgaria’s construction sector is picking up, official figures showed on Monday.

Municipal authorities have issued 1,154 permits for the construction of residential buildings comprising a total of 4 670 dwellings in the third quarter, the National Statistical Institute (NSI) announced.

Compared with the prior quarter, the number of issued construction permits was 1.2% higher, while the number of dwellings in the future buildings has increased by 35.2%.

The gross built-up area of residential buildings, for which construction permits were issued in the third quarter, has increased by 27.5% compared with the second quarter, reaching 654,082 square meters.

Compared with the third quarter of 2014, the number of issued construction permits for new residential buildings has increased by 11.1% in the period July-September of 2015, the number of dwellings in them by 35.8% and the gross built-up area - by 47.4%.

Permits for the construction of 40 office buildings were also issued in the third quarter of 2015, down 9.1% compared with the prior quarter. The gross built-up area of those future buildings, however, has increased sharply, by 218%    

The third quarter of 2015 also saw the launch of the construction of 741 residential buildings (up 23.5%, year-on-year) with a total of 3,006 dwellings (up 75.3%) and 446,375 sq.m. of gross built-up area, an increase of 103% compared with the same period of 2014.

The NSI also reported a rise in the number of construction starts of office buildings as well as an increase of the total built-up area.

 The construction of 25 office buildings with a total of 51,410 sq.m. of gross built-up area was launched in the third quarter, an year-on-year increase of 13.6% and 139.4%, respectively.

Source: http://www.novinite.com/

Housing Index in Bulgaria increased to 94.23 Index Points in the second quarter of 2015 from 93.39 Index Points in the first quarter of 2015. Housing Index in Bulgaria averaged 99.27 Index Points from 2005 until 2015, reaching an all time high of 145.47 Index Points in the third quarter of 2008 and a record low of 71.84 Index Points in the first quarter of 2005. Housing Index in Bulgaria is reported by the Eurostat.

Source: http://www.tradingeconomics.com

Biggest park in the Bulgarian town of Veliko Tarnovo was officially inaugurated on Monday. The official ceremony was attended by Mayor of Veliko Tarnovo Daniel Panov and Minister of Regional Development and Public Works Lilyana Pavlova.
Minister Pavlova stressed that this was just one of the five parks in the town, the modernisation of which was financed under the operational programmes of the EU for the past programme period.
The minister thanked the mayor and the municipal authorities for the efforts made. She also wished the local citizens to keep the new park in good condition.
Mayor Panov, on the other hand, thanked the minister for the opening of the operational programmes and for providing financing.
The official inauguration ceremony started with a water blessing service. It was also attended by many local politicians, public figures and hundreds of citizens and guests of Veliko Tarnovo.
The park is situated over 537 decares at the Sveta Gora Hill.
The Sveta Gora recreation centre is one of the major sites realised within the Veliko Tarnovo – Green and Accessible Balkan Capital of Cultural Tourism project.
The project was realised with BGN 7.2 million financing under the OP Regional Development 2007-2013.

Source: http://www.focus-fen.net

Bulgaria’s housing market is recovering, despite meagre economic growth, and property transactions are starting to pick up.

In 2014, the average price of existing flats in Bulgaria increased 1.15% to BGN 874.49 (€447.02) per square metre (sq. m.), the first year-on-year increase since 2008, according to the National Statistical Institute (NSI). When adjusted for inflation, the price of dwellings actually increased 2.05% last year.  In Sofia, the capital, the average price of dwellings was up by 3.1% in 2014 from a year earlier, at BGN1,501.73 (€767.75) per sq. m.

Bulgarian property prices are now 38.3% (-44% in real terms) lower than at their Q3 2008 peak, when average national prices reached BGN1,418.24 (€724.97) per sq. m.
Out of 28 provinces of Bulgaria, ten provinces saw house prices increase in 2014, including Stara Zagora, with an annual house price rise of 4.8%, Burgas (4.6%), Shumen (4.2%), Veliko Tarnovo (3.6%), Silistra (3.6%), Plovdiv (2.6%), Ruse (1.6%), Varna (1.4%), and Kardzhali (1.4%).  There were price drops in Kyustendil (-6.3%), Pernik (-5.7%), Sliven (-4.1%), and Pleven (-4%).

From 2000 to 2008, Bulgaria had a house price boom, with residential property prices surging around 300%.  The bubble burst at the end of 2008:

• In 2009, Bulgaria´s average dwelling price plummeted by 26.31% (-26.72% in real terms);
• In 2010, the average dwelling price fell by 5.58% (-9.68% in real terms);
• In 2011, the average dwelling price fell by 6.16% (-8.67% in real terms);
• In 2012, the average dwelling price fell by 1.4% (-5.42% in real terms);
• In 2013, the average dwelling price fell 1.21% (but increased 0.38% in real terms).

The current recovery is expected to continue. Demand for properties in the major cities will grow, and the supply will become increasingly limited due to the low levels of new construction, according to local property experts.

“An important element of the new market reality is the return of the confidence in the property market. More and more buyers are thinking of buying property because real estate is a safe real asset and good investment,” says Polina Stoykova of Bulgarian Properties. “It is clear and obvious that the buyers have permanently returned,” Stoykova added.

European Union citizens can now purchase properties in Bulgaria, including land.  The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted in January 1, 2012.

Previously, foreigners could purchase land only in the name of a legal entity and were not allowed to own a property. The lifting of the ban now gives European citizens the right to own property as individuals.

Demand is picking up again

Property transactions in Bulgaria, particularly in Sofia, continue to pick up. Three- and four-bedroom apartments were the most sought after properties in 2014, representing about 70% of all property sales, according to local property experts. About 70% of all property sales were purchased on a cash-basis.

Residential construction recovering

In 2014, the number of newly-built residential buildings rose 11.96% from a year earlier, to 2,462 buildings, according to the National Statistical Institute (NSI), in contrast to the declines of 8.34% in 2013, and 18.65% in 2012.

As of December 2013, the country’s total dwelling stock stood at 3,918,241 units, up slightly by 0.2% from a year earlier, according to the NSI.

Low interest rates

Interest rates in Bulgaria continue to decline. The average mortgage interest rate for BGN-denominate loans was 6.18% in January 2015, down from 6.97% in the same period last year, according to the Bulgarian National Bank.

For BGN-denominated loans:

• Interest rate fixation (IRF) of up to 1 year: 6.19%, down from 6.99% from a year earlier - and the lowest rate for eight years
• IRF over 1 and up to 5 years:  5.9%, down from 6.17% from a year earlier

Likewise, the average mortgage interest rate for Euro-denominated loans also fell to 6.83% in January 2015, from 7.59% in January 2014. Over the same period, for Euro-denominated loans:

• IRF of up to 1 year: 6.82%, down from 7.53% from a year earlier
• IRF over 1 and up to 5 years:  7%, up from 6.91% from a year earlier

Small mortgage market

Bulgaria’s mortgage market expanded during the boom years from just 0.39% of GDP in 2000, to 12.35% of GDP in 2010. Mortgage loans outstanding were 11.18% of GDP in 2014.

Credit demand remains weak. The total amount of outstanding housing loans dropped 1.4% y-o-y to BGN8.69 billion (€4.44 billion) in February 2015, despite record-low interest rates, according to the Bulgarian National Bank.

Moderate rental yields

In the centre of Sofia, gross rental yields on apartments are moderate, ranging from 4.64% to 5.97%, based on recent Global Property Guide research conducted in August 2014.

In the southern part of Sofia in Vitosha Mountain (or in the vicinity) there are prestigious suburban neighborhoods like Boyana and Dragalevtsi. Small apartments in the area offer better yields of up to 6.53%, and the very biggest apartments command exceptional yields at 8.36%.

Meagre economic growth in 2015

Bulgaria’s economy expanded by 1.5% in 2014, after growing by 1.1% in 2013 and 0.6% in 2012, according to the European Bank for Reconstruction and Development (EBRD).

The economy was projected to grow by 0.8% this year and by another 1% in 2016, according to the European Commission. The World Bank is more optimistic about Bulgaria’s economy, with growth forecasts of 1.1% in 2015, 2% in 2016 and 2.7% in 2017.

In 2014, the country’s budget deficit rose to 3.7% after a budget amendment and thus exceeded the EU deficit limit of 3%. In November 2014, Bulgaria’s parliament approved a 2015 budget with deficit equivalent to 3%. The deficit for the first two months of this year was just 0.2% of GDP, the lowest in the past five years. State debt is expected to increase to BGN24.5 billion (€12.52 billion) or about 30% of GDP.

The country had negative inflation of -1.7% in February 2015, after -2.3% in January 2015, according to the Eurostat.

Unemployment is expected to fall to 10.9% in 2015, according to the European Commission.

Source: http://www.globalpropertyguide.com

The average price of agricultural land in Bulgaria rose 15.2% last year, reaching BGN 684 (EUR 342) per 1,000 square metres, the statistics office announced on Tuesday.

Rental prices per 1,000 sq m of agricultural land also rose, reaching BGN 41 (EUR 20.5) on average, an increase of 7.9% compared to 2013.

Land under vineyards marked the highest uear-on-year increase in price in 2014, by 41.4%, reaching BGN 451. The average price of arable land for sowing wheat and maize rose by 14%, followed by land under orchards (+1.6%) and permanent grassland (+24.2%).

The highest price in agricultural land transactions, BGN 957 (EUR 478.5) per 1,000 sq m, was recorded in northeastern Bulgaria, often called the country’s breadbasket.  

Looking at the rental prices for agricultural land in Bulgaria, the sharpest year-on-year increase was registered in the price of orchards (+16.7%) and in arable land (+10.3%). Rent prices for vineyards, however, dropped by 29.4%.

The highest average rental price of BGN 61 (EUR 30.5) per 1,000 sq m of agricultural land was recorded in Bulgaria’s northeastern region. This was almost double the rental price level in the southwestern region, the National Statistical Institute (NSI) said.

Source: http://www.novinite.com/

Bulgaria posted the biggest rise in sales of commercial real estate in the EU last year, a new study has shown.

According to the latest edition of Cushman & Wakefield's International Investment Atlas, commercial properties worth USD 286 M (EUR 254 M) were sold in Bulgaria last year, an increase of 226% over 2013.

The statistics cover sales of offices, hotels, industrial properties, retail centres and land designated for construction purposes

The annual study covering property markets in 62 countries in the world has been presented in Sofia by Forton International, the strategic partner of Cushman & Wakefield for Bulgaria and Macedonia.

The recovery of the commercial property market in Bulgaria had accelerated in 2014 led by a rise in demand and occupancy rate in the segments of office and industrial properties, Forton CEO Michaela Lashova commented.

This in turn led to a rise in investors’ interest in launching new projects as well as acquiring existing commercial properties that operate and generate revenues, she added.

Investment activity in the commercial property sector in Bulgaria is expected to remain high this year, depending mainly on the economic growth in the Eurozone which is the country’s biggest trade partner.

Domestic investors will remain the key driver of sales growth in Bulgaria's commercial property sector, while the share of foreign capital will increase mainly in transactions for buying land for construction purposes and launching new projects or restarting frozen developments.

Source: http://www.novinite.com/

Sofia. Market prices have risen by 0.7% in the last four months of 2014 compared to the third quarter, an analysis of the National Statistical Institute (NSI) shows.

The index of market prices for the fourth quarter of 2014 y/y was 101.2%, or an average increase in market prices of 1.2%.

In the fourth quarter of 2014 property prices in 13 cities rose with a significant increase in Bourgas - 1.5%, Stara Zagora - by 1.4% and in Ruse - 1.3%. Prices dropped in the other 14 cities.
The average property price in the fourth quarter of 2014 was BGN 874.49 / sq. m. The highest average price was in Sofia (the capital) - 1 501.73/ sq. m, followed by Varna - 1 393.17 / sq. m, and Burgas - 1 162.83 / sq. m.

The index of market prices for 2014 was 100.5%, i.e. an average increase in market prices of 0.5%. In 2014 there was an increase of prices in 10 cities with a significant increase in Sofia (capital) - 2.9%, Shumen - by 2.8%, and Plovdiv - by 2.7%. Prices dropped in the other 17 districts and Sofia region.

The average price of housing in the country in 2014 was 869.75 / sq. m. The highest average price was in Sofia (capital) - 1 481.06 / sq. m, and in Varna - 1 377.00 / sq. meter.

Source: http://www.standartnews.com/

The market prices of dwellings in Bulgaria increased in the last three months of 2014, according to a study of the National Statistical Institute (NSI), which was released on Friday.

The prices of dwellings increased with 0.7 % compared to the preceding three-month period in 2014, and registered 1.2 % growth compared to the same period in 2013.

An increase has been registered in 13 of the regional centres and the district of Sofia, with Burgas, Stara Zagora and Ruse recording the most considerable growth in prices in the last three months of 2014.

The remaining 14 regional centres have registered a decrease in the prices of dwellings.

The average market price for dwellings in the country during the last three months of 2014 was BGN 874 per square metre.

The highest prices are recorded in the capital Sofia, followed by Varna and Burgas.

The average increase of the prices of dwellings in 2014 was 0.5 % compared to 2013.

The average market price for dwellings in the country in 2014 was BGN 869 per square metre.

Source: http://www.novinite.com

2014 has seen a great deal of change in the Bulgarian real estate market, with more and more foreigners buying assets along the Black Sea coast, in the ski resorts or in the country's capital, Sofia.

Consequently, house prices and rents have started to show increases for the first time since the financial crisis, with further growth expected. Despite a lack of new large-scale construction projects in Bulgaria, the property market still has many assets to offer.

The main difference between Bulgaria and other real estate markets in Eastern Europe that have experienced an increase in prices is that in the capital, real estate projects are easily accessible to the public through vehicles such as Real Estate Investment Trusts (REITs), listed at the stock exchange.

This means that Bulgaria's property market is largely financed by their stock exchange, a unique attribute to Bulgaria compared to other Eastern European countries, still struggling with the aftermath of the financial crisis, unable to revive their own real estate sectors.

Commercial property remains relatively cheap to other countries with office space in central locations fetching around €2000/sqm for prime spaces. The commercial rentals sector has also enjoyed growth, largely as a result of rents falling to 9% for centrally-located office space.

Prices are considerably higher in the residential sector, around €1,800/sqm in prime Sofia locations while in other Eastern European capitals, the prices can reach as much as €2,500/sqm.

The same price disparity can be seen in Bulgaria's agricultural land which has an average price per hectare of €1,000, while in Poland land can fetch around €6000 per hectare and in Greece, up to €10,000.

There are several advantages of investing in REITs, including improved liquidity over traditional property purchases and the divisibility of the sums that can be invested. The REIT segment of the Sofia real estate market has a capitalisation of €200m with forecasts for the figure to reach €1bn over the next 3-4 years.

Source: http://www.propertyshowrooms.com/

The market price index of dwellings for Q3 2014 compared to Q2 2014 was 99.9%, i.e. the average decrease of the market prices of dwellings was 0.1%, according to Bulgaria's Statistical Institute.

The market price index of the dwellings for the third quarter of 2014 in comparison with the corresponding quarter of the previous year was 100.4%, i.e. the average increase of the market prices of the dwellings was 0.4%.

In the third quarter of 2014 compared to the previous one, a price decrease was recorded in 19 district centers and in Sofia district.

The decrease was more considerable in Kyustendil - by 2.5%, Pernik – by 2.4% and Razgrad - by 1.9%.

In 8 district centers a price increase was recorded. In the third quarter of 2014 the average market price of the dwellings for the whole country was BGN 868.77/sq. m.

The highest average prices were recorded in the following district centers: Sofia – BGN 1 485.67/sq. m, followed by Varna – BGN 1 378.33/sq. m and Burgas – BGN 1 145.33/sq. m.

Source: http://www.novinite.com

Bulgaria's property market is picking up and there is a slight price growth over the last three months, according to one of the leading companies in the sector.

Its chief executive Teodora Dimitrova was clear that the price hike may continue, but it will not be drastic, Darik news reports.

Dimitrova noted that for the first time in six years a minimum increase in real estate prices was reported in March. The highest demand is for one or two bedroom homes, she added.

"The money Bulgarians invest in houses range between BGN 30,000 and BGN 50,000, these are the most common transactions. They are mainly financed with own funds, from the sale of another property or with a bank loan," Dimitrova said.

Asked whether the stirring of the market will lead to higher property prices Dimitrova said that currently there is a high supply and therefore prices remain stable.

The company, which has offices in most European countries and monitors the market in the United States and Turkey, reported that the domestic interest rates are among the highest, Darik news informs.

Source: http://www.novinite.com

The real estate deals in Bulgaria in H1 2014 grew by 64%,year-on-year, shows an analysis of Bulgarian real estate company. 

Due to the bank panic in June, buyers showed increased interest in buying homes in Sofia. 

In Varna and Burgas, however, the deals with Russian citizens dropped by 35% in H1 2014, year-on-year.

The analysis of the real estate company shows that this year the property sells twice as fast, compared to 2013. On average an apartment in Sofia, Varna and Burgas sells for 66 days, while in 2013 it took 120 days.

Source: http://www.novinite.com

At least BGN 200M higher levels of cash flow were recorded on Bulgaria's property market by the end of June and the beginning of July, 2014.

According to brokers, additional BGN 40M real estate investments are expected in the autumn when the market activity traditionally improves. The flows of cash have most probably come from deposits withdrawn during the banking system panic in June, Bulgarian 24 chasa suggests.

A total of 220,000 property transactions per year are carried out on average. Their number is nearly 19,000 per month at an average price of BGN 100,000 per deal. In July only, brokers report a 15% growth in real estate transactions.

Cash flow on the property market may turn out to be higher, as the survey does not include the property purchased by Bulgarians abroad, the media outlet notes.

Experts report an unusually increased activity in the summer months in the transactions in office space and building plots with construction permits.

Big real estate agencies suggest that it is entirely possible for the migration of deposits to properties to increase for two reasons - the market is traditionally weaker in the summer and records growth in the second half of the year. Secondly, the process of purchasing property takes at least 4-6 months.

Source: http://www.novinite.com

Bulgaria remains relatively stable in terms of the most desired second homes purchase destinations for British citizens.

In end-June, Bulgaria occupies the 11th place in the ranking of the online portal TheMoveChannel.com after the country has managed to reach 10th place twice in 2014, Investor.bg reports.

For the first time Poland has reached the top 10 in the international ranking. The country occupies the 10th position in June, which is the highest position in the ranking that a Central European country has landed so far.

The United States remains the most desired destination for Brits buying property abroad. Spain has returned to the second position in the ranking, followed by France and Portugal. The fifth position is occupied by Brazil.

The strongest increase was observed in the demand for holiday homes in the United Arab Emirates in June. According to the online portal, the interest of the British customers in the country continues to grow.

Source: http://www.novinite.com

Bulgaria’s housing market is now recovering slowly, amidst an improving economy.  House prices are now stabilizing, and property transactions are starting to pick up.

In 2013, the average price of existing flats in Bulgaria dropped by just 1.21% to BGN 864.52 (€442.12) per square metre (sq. m.), the slowest year-on-year decline in the past five years, according to the National Statistical Institute (NSI). However, when adjusted for inflation, the price of dwellings actually increased slightly by 0.38%.

On a quarterly basis, the average price of existing flats in the country fell by 0.15% (-0.93% in real terms) in the last quarter of 2013.

Property prices in Bulgaria are now 39% (-45.1% in real terms) lower than at their Q3 2008 peak, when they reached BGN 1,418 (€725.17) per sq. m.

In Sofia, the capital, the average price of dwellings was down by 0.9% in 2013 from a year earlier, at BGN 1,439.79 (€736.32) per sq. m.

Out of 28 provinces of Bulgaria, only 3 provinces, which included Ruse, Targovishte, and Veliko Tarnovo, saw annual house price increases in 2013. Sharp price drops were recorded in Vratsa, Pazardzhik, and Sliven.

From 2000 to 2008, Bulgaria had a house price boom. Residential property prices surged around 300%.  However, the property bubble burst towards the end of 2008, mainly due to the global economic and financial crisis.

• In 2009, Bulgaria's average dwelling price plummeted by 26.31% (-26.72% in real terms) from a year earlier;
• In 2010, the average dwelling price fell by 5.58% (-9.68% in real terms);
• In 2011, the average dwelling price plunged by 6.16% (-8.67% in real terms);
• In 2012, the average dwelling price dropped by 1.4% (-5.42% in real terms).

The Bulgarian property market is expected to continue recovering in 2014, thanks to the stable income and cash savings of homebuyers, according to local real estate agency Adres.
"Deposit interest rates are expected to drop further in the next 12 months and the decline of real estate prices will stop, which will activate buyers," said Georgi Pavlov of Adres. "We expect that a lot of people who have savings accounts will consider investing in real estate, once they note the decrease in interest rates. Property investment is a safe bet, and a possible price hike would make it even more profitable," Pavlov added.

European Union citizens can now purchase properties in Bulgaria, including land.  The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted in January 1, 2012.

Previously, foreigners could purchase land only in the name of a legal entity and were not allowed to own a property. The lifting of the ban now gives European citizens the right to own property as individuals.

Foreign demand has collapsed since the boom

From 2006 to 2008, real estate was a quarter of total foreign direct investment (FDI) in Bulgaria, with a quarterly average of €541 million. However, real estate FDI has shrunk since 2009. In Q3 2012, real estate FDI was only €7.6 million, down from the previous year’s €66.6 millio

Demand starts to revive

In Sofia, property sales have already revived, with the number of transactions rising by 10% in 2013 from the previous year, according to Polina Stoykova, MRICS' Head of Operations and Property Research. In addition, the sales of seaside holiday homes also rose by about 20% over the same period.

Modest economic growth in 2014

In the fourth quarter of 2013, Bulgaria’s real GDP growth rate accelerated to 1% from the same period last year, up from the annual growth of 0.7% in Q3 2013 and the fastest pace since Q1 2012, thanks to higher consumption. This followed 0.4% growth in 2010, 1.8% growth in 2011 and 0.8% growth in 2012, according to the National Statistical Institute (NSI).

In 2014, the Bulgarian government expects the economy to expand by 1.8%, slightly more optimistic than the IMF’s projection of 1.6% growth and European Commission’s 1.5%.

Bulgaria has one of the lowest budget deficits and overall debt levels in Europe. In 2013 its budget deficit stood at 1.8% of GDP, below the government target of 2%, according to the Finance Ministry.  Bulgaria’s overall debt rose to 18.5% of GDP in 2013, from 16.3% of GDP in 2012, still one of the lowest in Europe.

In January 2014, inflation stood at 1.3%. Bulgaria’s average annual inflation rate is expected to slow to 0.8% in 2014, and to stand at 1.2% in 2015, according to UniCredit Bulbank.

Unemployment rose to 12.9% in 2013, up from 12.3% the previous year, according to the NSI.

But in February 2014, the country’s jobless rate fell slightly to 12.1%, according to Eurostat.

Interest rates are declining

Credit demand remains weak. The total of new housing loans granted from January to November 2012 amounted to BGN 1,048.2 million, 8.2% down on the same period in 2011, and 65.8% down on the same months in 2008.

In May 2010, non-performing housing loans reached BGN 48.6 million, or 13.1% of the Bulgaria’s total bad debts. In response, banks lowered the maximum loan-to-value ratio to 50%, and have implemented strict income and property requirements.

The average mortgage interest rate for BGN-dominated loans was 7.12% in November 2012, down from 8.23% in 2011. The Euro-dominated loan rate was 7.40%, down from 7.85% in 2011. The declining mortgage rate trend is likely to continue in 2013, according to Levon Hampartzoumian, chairman of the Bulgarian Association of Banks.

Source: http://www.globalpropertyguide.com

Veliko Tarnovo and Burgas are the best Bulgarian cities to live in in 2013.

For the first time in the seven years of the competition, organized by Bulgaria's national radio Darik and the 24 Chasa daily newspaper, two cities are tied for the top spot. Both cities got an equal number of points in the 20 criteria. 

Veliko Tarnovo is winning the prize “Best City To Live In” for the first time, while for Burgas this is the third occasion. The seaside city won the prize in 2012, as well. 

The special prize for “Fastest Developing City” went to the seaside resort town Nesebar. It boasts high fertility rate, large number of weddings and fast development. 

The “Best City Outside Bulgaria” went to the Serbian town Dimitrovgrad. 

Bulgaria's capital Sofia won the prizes “Best Business City” and “City With Best Cultural Life”. The seaside city of Varna got the prize “City With Best Outlook”, thanks to the development of its tourist zone and the plans for the enlargement of its port. The “Greenest City” award went to Kyustendil.

Source: http://www.novinite.com

Bulgaria is currently the tenth most preferred destination by Britons who want to purchase vacation housing.

The country has once again made its way into a list created by TheMoveChannel.com, a website reflecting British predilections for summertime immovables.

With some 1.6% of property inquiries to the website, it has moved 5 places up in February.

Last year, Bulgaria was somewhere between 15th and 20th, suffering an unexpected blow after it had been ranking among top 5 holiday property sellers for a long time.

The first ten countries in the list also include US, France, Spain, Portugal, Brazil, Canada, Turkey, Australia and Italy.

Source: http://www.novinite.com

Bulgaria is ranked 14th in the demand for property among British citizens, according to the British website TheMoveChannel.com.

In the ranking for December, Bulgaria climbs up 6 positions. In terms of European countries, Bulgaria is the 8th most popular place for Brits to buy property.

United States and Spain keep the top positions firmly, with a big lead over the rest in rating.

Argentina has seen the highest rise in the ranking, climbing 18 positions, to 6th. Greece, which had dropped considerably during the years of recession, is now recovering, up to 16th place.

British citizens are increasingly buying property in Croatia and Romania as well.

Source: http://www.novinite.com

The British travel guide ranked Bulgaria as the eighth best country for tourists this year. Countries such as Ethiopia, Madagascar, Brazil, Turkey and Japan all ranked above the Bulgaria, but Rough Guides highlighted it as an "intriguing destination", thanks to its picturesque beaches, low prices and welcoming locals.

Bulgaria's Black Sea resorts are predicted to bring in the most visitors due to a rise in popularity of cycling, hiking and skiing.

"A sort of cheaper alternative to Croatia it is currently far less touristy," the UK publisher told Novinite.

Things Rough Guides recommends not missing include the Alexander Nevsky Cathedral in Sofia, as well as the Rila Monastery in Plovdiv's old quarter and Mount Vitosha, just outside the capital city.

The ranking will help to boost Bulgaria's tourism industry in a year in which agents are already predicting a rebound for investment activity. Buyers looking to benefit from rising tourist numbers or holidaymakers attracted to holiday homes during their stay may well help to boost the country's reputation again among overseas buyers.

Source: http://www.themovechannel.com

Bulgaria's real estate market has experienced a 1.42% growth in sales on an annual basis during the third quarter of 2013. 

A total of 59 475 real estate properties were sold during the third quarter, reveals Bulgarian Properties. 

The property sales in the bigger regional cities account for 53% of the total national sales. 

The highest increase compared to the same period in 2012 is registered in Burgas, with a rise of 23,43%. This is attributed to a much higher interest in sea-side properties from Ukrainian and Russian nationals. 

In the capital Sofia, 7.74% more properties were sold compared to the same period in 2012. Plovdiv registered a similar increase, at 7.64%.

Source: http://www.novinite.com

Bulgaria will be again on focus next year when foreigners will be able to acquire agricultural land, but local experts are already fuming against the low prices, saying the country is giving its fat land for free.

"We will wake up on January 1, 2014, only to realize that we have given away our land for free," Professor Vesselin Boyadzhiev, from the Social and Economic Geography department at Sofia University, said in an interview for Novinite.bg.

Even though many expect the open sale of Bulgarian land to foreigners to enliven the market of tilling land in the country, Boyadzhiev says that land plots here are ridiculously underpriced in comparison with Central and Western Europe.

"Bulgaria's fat land is just as good as in France in terms of mineral resources and biodiversity, but it is tagged at ten times lower prices.

My most serious concerns are that we are already wasting this precious natural resource. As of January 1, 2014 the plundering will be official.

In time you will realize that we made a big mistake by not preparing a national policy on what is still national resource. I say "still" because it is no secret that foreigners, including from non-EU countries, have been buying Bulgarian land for years by different means."

Nowadays, foreigners who have the legal right to reside in Bulgaria, are free to purchase land.

Citizens of the EU, who do not reside permanently in Bulgaria, were able to acquire the land of their second home in the country after January the 1st 2012 as to the Treaty of Accession of Bulgaria to the EU.

The situation is different however when there is an issue considering agricultural land.

Officially only after January the 1st 2014 foreigners will be able to acquire agricultural land. But there are exceptions - EU citizens can register as agricultural producers and state their intention to reside permanently in the country, which will entitle them to the right to purchase land even before 2014.

Source: http://www.novinite.com

Bulgaria has the eight fastest Internet connection in the world, according to the latest rankings of Bloomberg.

In the third quarter of 2012, the average internet connection speed in Bulgaria was 32.1 mbps, which is a fifteen-percent increase from the previous quarter.

Hong Kong, South Korea and Japan have the top three fastest internet connections in the world.

In Europe, Bulgaria is trailing behind Switzerland, Romania, Lithuania and Belgium.

Source: http://paper.standartnews.com

(Sofia, Jan 22) - The Bulgarian economy will grow by 1.9% year-on-year in 2013, the European Bank for Reconstruction and Development predicts. The 1.9% forecast represents an increase in the institution's expectations as compared to the 1.7% GDP growth outlook for 2012.

The EBRD emphasizes that the fiscal position of Bulgaria remains stable and that our country has a  low budget deficit. Attributable to the successful Eurobond issues released last year, Bulgaria has substantial cash buffers to withstand future shocks, the bank said.

Yet, with the 1.9% forecast, the EBRD expects Bulgarian GDP growth to remain modest because of slower export growth and problems in the eurozone.

While the World Bank's outlook for Bulgaria in 2013 is an 1.8% GDP increase, the IMF counts with an 1.5% growth. The European Commission on its part expects an improvement of 1.4%.

Source: http://paper.standartnews.com

An increasingly sought-after property destination, Bulgaria's appeal has recently stretched beyond Russian and German buyers to include investors from UK, Europe and other countries from around the world.

Indeed, the country's combination of low prices, beautiful beaches and culture has seen it become a regular feature in TheMoveChannel.com's 10 most popular property destinations.

Here are the six most popular property destinations in Bulgaria:

Sunny beach

Sunny Beach is the largest beach resort in Bulgaria and also the most popular. Developed over recent years into a major coastal hotspot, complete with hotels, restaurants and clubs, the resort has seen its visitors grow from just Germans and Russians to include the whole world. No wonder that almost half of those searching for Bulgarian property on TheMoveChannel.com look here first.

Varna

The biggest city on the Black Sea Coast, Varna is Bulgaria's summer capital. Its unique range of thermal baths full of hot water sprinkle the beautiful coastline, causing visitor numbers to swell during the peak season. Combined with its affordable property prices, Varna is the perfect alternative to the Mediterranean for investors and holiday home hunters.

Burgas

Home to the second-largest city on the Black Sea Coast, Bulgaria's Burgas province is the largest region in the country. From Burgas city and Obzor to Nessebar and the hugely popular Sunny Beach, demand for the area's property stems directly from its beach hotspots.

Veliko Turnovo

Located in the centre of Bulgaria, what Veliko Turnovo lacks in coastline it makes up for with history, architecture and culture. The main city is one of the country's most popular destinations among visitors. In fact, property in the Veliko Turnovo province is so popular it makes up over 1 in 5 enquiries for Bulgarian real estate on TheMoveChannel.com.

Veliko Turnovo

Located in the centre of Bulgaria, what Veliko Turnovo lacks in coastline it makes up for with history, architecture and culture. The main city is one of the country's most popular destinations among visitors. In fact, property in the Veliko Turnovo province is so popular it makes up over 1 in 5 enquiries for Bulgarian real estate on TheMoveChannel.com.

Dobrich

Located in North-East Bulgaria, Dobrich is a popular destination for buyers in Bulgaria thanks to its proximity to resorts such as Golden Sands. Allowing residents easy access to the coast without busy tourist crowds, property in Dobrich is perfect for quieter holiday home hunters.

Source: http://bulgaria.themovechannel.com

Bulgaria’s Registry Agency launched on November 14 2012 a new website to give foreign citizens and companies information on procedures for buying and maintaining real estate in Bulgaria.

Prime Minister Boiko Borissov, Justice Minister Diana Kovacheva and Registry Agency chief Yuliyan Mitev attended the launch of the website.

The launch comes about four years after the beginning of the decline of the property market boom in Bulgaria which had seen large numbers of British and Irish citizens, pensioners in particular, buying real estate in Bulgaria. The global financial crisis precipitated a sharp decline in Bulgaria’s property market, although recent years have seen a recovery to a degree because of Russians buying property, especially along Bulgaria’s Black Sea coast.

The boom in British and Irish investors also was damaged by incidents in which buyers were scammed by unscrupulous lawyers, brokers and developers, with some buyers losing large sums of money through fraud or failed residential building development projects.

According to the Bulgarian Government media office, the Cabinet allocated 30 000 leva (about 15 000 euro) in July 2012 for the launch of the website, which is to offer foreign natural and juristic persons detailed information on the rules for buying and managing real estate in Bulgaria, including about relevant bodies and procedures.

The website, according to the Government media office, will also enable foreigners to submit complaints online to the relevant bodies. Apart from Bulgarian, the site has English and Russian versions.

The media office said that the website will ease the work of investors and reduce the number of cases that they refer to foreign embassies in Bulgaria.

Source: www.sofiaglobe.com

The direct foreign investments in Bulgaria for the first eight months of 2012 amount to 873 million euro, the Bulgarian National Bank (BNB) reported. This figure is by 68% more compared to the same period of 2011 when the foreign investments reached 516 million euro.
At the same time, the direct foreign investments in Bulgaria in August 2012 were only 21,6 million euro compared to the 140 million euro in August 2011.
The main part from the foreign investments in Bulgaria come under the shape of joint-stock capital and real estate purchases - 541,9 million euro. The invested funds in real estates in 2012 are 157,5 million euro compared to the 152,5 million euro for the same period of 2011.
Bulgaria increases its direct investments abroad by 104,5 million euro end-August 2012, the BNB data shows.

Source: www.standartnews.com

In 2013, Bulgaria could become one of the top 25 most fiscally-disciplined countries in the world, Deputy PM and Finance Minister Simeon Djankov told the Focus news agency.
Of all criteria for competitiveness included in the Global Competitiveness Report, he pointed out the country's fiscal policy as the sector, where the country has made the biggest progress, climbing fifteen positions in 2011 - from the 46th to the 31st place in the world.
Europe's strongest economy, Germany, ranks 30th and Austria is four positions behind Bulgaria, Djankov said also.
Djankov's statement came as a response to the statement of Mrs. Meglena Kuneva, leader of the Bulgaria of Its Citizens Movement, who said that Bulgaria's ascend to the 62nd place in the Global Competitiveness Report owes itself to the increasing unemployment rate in the country.
"What we have here is fewer and fewer working Bulgarians, who produce the same amount of goods," she pointed out.
Djankov, however, countered that the competitiveness report encompasses twelve criteria, such as fiscal policy, infrastructure, education, healthcare, technologies, agriculture, etc.
Against the infrastructure criteria, for instance, Bulgaria has climbed to the 76th place from the 87th a year ago, and in the field of primary education Bulgaria now ranks 49th, while last year it was 56th, Djankov explained.

Source: www.standartnews.com

A new demographic trend is emerging in Bulgaria. Many urban residents are prepared to become residents of rural areas for the sake of the European subsidies. The change will occur by the end of 2013 when new municipalities will appear, The Standart learnt. A team of experts of the Ministries of Regional Development, Agriculture and Environment are working on a new administrative division of Bulgaria. It is expected that rural municipalities will become more numerous at the expense of the urban ones. Thus rural areas will be able to apply for EU programs focused on environment protection. To this end some of the smaller municipalities will split from the larger ones.
Currently only municipalities where the smallest settlement numbers 30,000 inhabitants may apply for funds under the EU Rural Areas Development Program. The others are deprived of an access to this ample resource exceeding 3 billion euro. The amendment to the administrative division is the last chance to many small villages located close to big urban centers to take a breath, experts believe.    

Source: www.standartnews.com

Bulgaria's minister of economy and energy Delyan Dobrev forecast an economic growth of 2% by the end of 2012 during his visit to the town of Haskovo. According to the hitherto data, as to the first trimester of 2012 the economic growth was 0.5%.
"Tourism is the sector which gives us good hopes for improvement of Bulgaria's economy in 2012," minister Dobrev stated.
In his words, the number of tourists to visit Bulgaria this year will increase by between 5% and 8%. About 20% of all holiday-makers in Bulgaria this summer will be from Russia. A big number of tourists from Belarus is also expected.
By the end of June all vacancies in the summer resorts will be filled up and all expectations are for a very successful season," minister Dobrev commented.

Source: www.standartnews.com

Bulgaria's Minister of Regional Development, Lilyana Pavlova, wants to introduce mandatory insurance and technical passport for all private properties.

According to the Bulgarian Minister of Regional Development Liliana Pavlova, the Bulgarian government plans to build a highway that will connect the border between Romania and Bulgaria – from Ruse to Turkey as a public – private partnership project. According to Mediafax, she said that the investment required for the 300-kilometer highway will be between 500 million and 1 billion Euro. The Regional Development Minister estimated that the preparation of the paperwork could take as long as a year, adding another six months for the tender process and around 2 years for the construction, according to Bulgarian newswire Novinite.

Bulgarian authorities had already consulted for this project with investors from Qatar, China and Oman. The Minister of Foreign Affairs of Qatar, Khaled al-Attiyah said, during a visit in Sofia last week that his country was interested to participate in this project. About 7,000 vehicles, mostly trucks pass every day through Bulgaria on the way to Turkey.

Source: http://www.bucharestherald.ro

A car and a flat to be bought only after paid health contributions, Bulgaria's cabinet decided yesterday approving the amendments to the Tax-Insurance procedure code. The idea was pushed forward by current minister of health Dessislava Atanassova the moment she occupied the post of minister of health. Dessislava Atanassova also proposed that IDs and driving licences should not be issued to people who have missed to pay their health insurances but this proposal was turned down.
The latest data shows that about 1 million Bulgarians have not paid health insurances. The cabinet hopes that the new sanction forces at least part of them pay their health contributions.
The new measure will create additional difficulties to those people whose employers have not paid their health contributions. Such people are not in the list of uninsured Bulgarians but cannot show a document for paid health contributions.

Source: http://paper.standartnews.com/en

Bulgaria is to spend about 300 million leva (about 150 million euro) in European Union funds over the next two years restoring 11 castles and a large number of ancient sites that are popular tourist attractions.
 
Among the sites where restoration and development work will be done are the museum village of Etura, former capital Pliska, the Madara Horseman cliff carving near the town of Shoumen, Arbanassi, the Assenovgrad fortress, Magura and Ledenika caves and the Belogradchik rocks.
 
Regional Development and Public Works Minister Liliana Pavlova said that 61 municipalities would be involved in implementing the projects, with their tasks including improving infrastructure near tourist attractions, a report by television station bTV said.
 
For example, near the village of Belchin – in western Bulgaria, 15km from Samokov and 50km from Bulgaria’s capital city Sofia – there is a fortress dating back 1700 years. The fortress, with walls 350m long and with six towers, would within two years be restored to its former appearance, according to the report.
 
Close to the fortress walls, archaeologists found the remains of three churches, said to date back to the same period as the fortress, seen as proof that Christianity had come to the area at the time of Byzantine emperor Constantine the Great.
 
Samokov municipality is to be given close to six million leva to develop the site into a tourist attraction, with a museum and reconstructions portraying ancient life, the report said.

Source: http://sofiaecho.com/

Bulgaria’s real estate brokerage business is set for a cleanup, with plans to table legislation in Parliament later in 2012 to professionalise the business and drive out rogues and rip-off artists from its ranks.
 
Currently, the property business in Bulgaria is in the doldrums, a sharp contrast to the heady days of the real estate boom of a few years back – a boom that led a number of unscrupulous operators to seek to take advantage, especially because of the unregulated nature of the business.
 
The new bill envisages the setting up of a professional association of realtors, along the lines of such associations in other countries which seek to ensure proper professional standards in the real estate business, and to establish a public register of companies and individuals in the real estate sector.
 
Television station bTV quoted Vassil Lazov, a dissatisfied client in a real estate transaction, as saying that in many cases where customers had received bad service, it was because the real estate agent had behaved inappropriately or was incompetent.
 
Lazov said that he had bought a plot in the Lyulin residential area of Sofia and had been promised that he would receive the title deed after a month – but instead got it after more than a year and a half.
 
The Real Estate National Association said that the bill would provide for the introduction of mandatory requirements for qualifications to become real estate agents and brokers.
 
Businesses in the sector should have legal and financial standing and professional liability insurance so that, in the event of serious negative consequences for the client, compensation would be possible, association president Ivan Velkov said.
 
The report said that the bill, "consistent with European standards", would be tabled in Parliament by the late summer.
 

Source: http://b2bnews.bg

After a careful study of the market and the preferences of the clients and thanks to our experience on the sphere of real estate business, we have developed a new website of the established Real Estate Agency VT Bulgaria Ltd. – www.vtbulgaria.com. Here you will find a great variety of properties with facilitated search according to different criteria; automatic update of the properties after entering new criteria; daily news from the real estate market and the region, information for our agency and services we offer.

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