Listed below are all the Press Releases by Bulgaria Beckons.com

MARKET "RIPE" in Bulgaria

COME on down - that's the advice to Merseyside firms from the British Embassy in Bulgaria.

Officials in the capital Sofia say the former communist state is ripe for development ahead of its 2007 accession to the European Union.Opportunities range from roads and railways to IT and consultancy.
In a special briefing for the ECHO the Ambassador's office in Sofia said: "British successes here are in distribution centres, project management, property investment, factory building, air traffic control systems, railway construction, water treatment and gas exploration off the Black Sea coast.
"There are also a lot of UK consultancy businesses here because we are world leaders in every field."
The spokesman also spelled out the ease of setting up a business in Bulgaria: "It is possible to enter into a joint venture with a Bulgarian host but it is also possible to directly set up your own operation or buy an existing company, sometimes within a month.
"Investing in Bulgaria has a lot of incentives such as 15% corporation tax and low labour costs," the spokesman added.
The Bulgarian economy is expected to surge at least until 2018 and inflation is currently about 4%.
Britain is the third biggest foreign investor in Bulgaria. Latest figures show a 27% increase with £155m in trade from the UK and £150m worth of trade done by Bulgaria with Britain.
One area of interest for the UK is the water industry. A new regulator has just been introduced using Ofwat as its model and Warrington-based United Utilities owns a 37.5% stake in Sofia Water which provides services for 1.6 million consumers.
Sofia Water chief executive Kevin Starling said: "It is quite remarkable to see how the place is evolving.
"We are the only international operator here and things are looking good for us."
United Utilities entered the market five years ago and Sofia Water contributed to UU's bottom line for the first time last year.

By Neil Hodgson, Liverpool Echo  his story here http://icliverpool.icnetwork.co.uk/business/news/tm_objectid=16259447%26method=full%26siteid=50061%26headline=market%2d%2dripe%2d%2din%2dbulgaria-name_page.html

75% OF FOREIGN TOURISTS SAY THEY WILL RETURN TO BULGARIA

A total of 75% of the foreign tourists that visited Bulgaria this year intend to return, shows a survey of foreign tourists in Bulgaria, conducted by Visa International, the world's largest card-payment network.

The survey was conducted at the end of August this year at the Burgas airport to trace trends in tourist spending habits.

Out of the random sample of foreign tourists, British tourists outnumbered the others, representing 20% of the total interviewed; followed by Germans (18%) and then Czech visitors (17%). The interviewing process included 8 % of Russian tourists and 12% citizens of countries outside the European Union.

More than 60% of visiting foreign tourists view shopping as a major priority during their holiday, the survey showed

Low prices in Bulgaria continue to be the most powerful force that attracts tourists to Bulgaria. More than half of the surveyed people (56%) claim low prices motivated them to visit the country. Conversely a similar survey in Croatia showed that foreign tourists are mainly attracted by its nature. Those who saw rich cultural heritage as main motive to visit Bulgaria are 9%.

Along with low prices, nearly 94 % of the interviewed expressed a pleasant surprise by the ‘good' or ‘excellent' shopping opportunities that Bulgaria merchants offer. Small shops are the most popular choice for the foreign tourists with 59% choosing them over markets and large shopping centers.

Eating in Bulgarian restaurants and trying out local delicacies is highly valued by foreign tourists with 71% of them eating in restaurants while on holiday. In addition, two thirds of the tourists answered that they prefer the seaside and had no intentions to visit other parts of the country.

Breaking News!

First Bulgaria Beckons Property fund exclusive to members oversubscribed in 10 days.

An additional selection of properties are being considered, if you are a member and have not joined the initial offering you may qualify.

Details from info@BulgariaBeckons.com 

Bulgaria: From city to sea

 LEGEND has it that when God gave out pieces of the Earth for peoples of the world to settle on, He left the Bulgarians till last, giving them with the best, most beautiful and varied landscape. As I emerge from Sofia International Airport for a waiting taxi into the capital, I have a little time to admire the sharp contours of Vitosha mountain, rising out of purple haze at the north of the city. I am staying with friends and family, travelling 500 miles from Sofia to the sea on an improvised backpacking trip across the north of the country. 
A quick change of clothes, and the journey begins with the Orchestra of the Bulgarian National Radio performing Dvorak's seventh symphony in a nationwide classical music festival.

The arts scene in the country has much to offer in spring and summer, with top quality open-air music contests, film and theatre events to please the most capricious connoisseurs. The following day I explore the town by myself. Its cobbled stone streets start to steam as the first rays of sun hit them and the racket of trams, cars and rickety buses is the sound of the city waking up. On Graf Ignatiev boulevard, tempting smells waft from stalls selling zakuski - filo pastries and dough-based snacks stuffed with cheese or sweet fillings - which Bulgarians devour in the morning. Buckets of flowers are for sale by the traffic lights.

Popa, an affectionate title for a black granite statue of the scholar Patriarch Evtimii nearby, is a meeting point for virtually all teenagers in Sofia. Then it's on to Rakovska Street, the artistic hub for fame-seekers keen to try their luck at the National Academy for Theatre and Film Arts. The street is also home to numerous theatres frequented by established and rising actors.

Climbing the hill, I get a superb view of St Alexander Nevski cathedral, its golden domes sparkling in the sun. Completed in 1912, the cathedral honours Russian casualties of the Russian-Turkish war of 1877-78 which liberated the country after nearly five centuries of Ottoman rule. Inside the cathedral's grand wooden door, icons of saints, kings and queens line the walls and ceiling, painted in the signature fashion of Eastern Orthodox church art. Frankincense burns during the service to drive the devil away.

My tour of Sofia's sights finishes at the main building of Sofia University, with statues of Greek canonized scholars Kliment and Methodius. Beautiful copper domes, green with age, finish off the grand look. There's so much more to Bulgaria than just Sofia, however, so I board a coach to take me 500 miles east to the coast, travelling in daylight to make the most of the stunning scenery on the six-hour drive to the sea.  
 

 Leaving Sofia, the ravine of the Iskurski Prolom - the sharp-edged canyon of the river Iskur - appears to our right. Then the rounded peaks of the Stara Planina range appear, half bathed in crimson morning sunshine, half covered by shadow of faint blue clouds. Vast expanses of green mountain forest greet us as we follow the curving motorway. It isn't just breathtaking; this is scenery to lose your heart for. On the way to Varna, Bulgaria's third biggest city, we stop for a brief stint at the country's medieval capital, Veliko Turnovo, where cosy-looking townhouses dating from a mixture of centuries perch on the slanting banks of the river Yantra.

With a constant, slow breeze from the coast, Varna is a cooler town next day. I follow the traffic of sandals, strappy tops and shorts along the pedestrian commercial area to meet a friend at the gates of the Morska Gradina, Sea Gardens, for a walk along the beach.  
 
The lavish dark green beeches and maple trees in the park surround us as we make for the beach, passing a string of Varna's famed seaside nightclubs, which function as casual restaurants and cafes by day. Here we feast on the essence of Bulgarian beach cuisine - a bowl of chips, piles of small deep fried fish - tzatza - and copious amounts of Bulgarian lager - for about £2.50.We sit on steps carved into a stone block, our feet almost touching the water, watching the steel masts of cargo ships and cruisers in the harbour.

After lunch we turn back and climb the steep hill leading to the Gardens and head for the Leten Teatur (Summer Theatre) - an open-air venue popular with touring orchestras, ballets and bands in the warm seasons - for a colourful production of Carl Orff's Carmina Burana.

Varna has many faces and moods. A new life emerges after sunset as revellers flock to the seaside nightclubs and bars, where the entry fee is a modest four leva, or £1.50. More expensive night life can also be found at the seaside resorts north of Varna - among them Zlatni Pyasatzi (Golden Sands) and Slunchev Den (Sunny Day). It is the town's clubs I opt for on a Friday night, where I perfect my salsa dance moves on the stone slate floors of a Latin fiesta club. A night to remember takes on a whole new meaning as we leave at 3am to the crash of waves on the seafront. As legends go, Bulgaria's is one of the more extravagant ones. But there may well be truth in it, for few leave this country untouched by its unassuming beauty.

Article by Denny Vlaeva, Manchester Online 

Welcome to the Costa del Bulgaria

British tourists are flocking to this country's Black Sea coast, says Robert Nurden. But there are still some quieter corners to explore
A story going around says that Bulgaria decided to shun mass tourism on the Black Sea in favour of a more authentic, low-key product. Some in the industry say that the country has looked at Spain, shuddered at the sprawling expanse of hotels, and opted instead for low-impact development, while still offering cheap holidays by the sea.
The story has an element of truth, but it ignores the high-rise complexes at Sunny Beach and Golden Sands. Formerly called Slanchev Bryag and Zlatni Piasatsi, they were renamed to blatantly lure British visitors. And obligingly we've come running from the Spanish costas in droves. 
The picture is complicated by the demise of Communism. Czechs, Poles and East Germans used to descend on the pristine white beaches of the Black Sea for totalitarian breaks at soviet prices. Now that the new capitalists of the east are exploring the hotspots of western Europe, the old-style summer playgrounds are being demolished to make way for basking Britons - more than 250,000 of them last year, 62 per cent more than in 2003. The chance to snap up a bargain property and the promise of double-digit investment growth also beckons.
Is it too late to find rest and recreation on Bulgaria's 350km (200 mile) coast? Luckily not. Down south, beyond Burgas, lies a huddle of peaceful villages next to the shore. (The Black Sea may be inland, but it's insulting to call it a large lake: waves regularly lash its high cliffs.) 

This selection includes Ahtopol, one of the last Communist summer camps still in operation, where old-timers from workers' co-operatives roll up every year to take advantage of the ridiculous prices and pitch their tents for weeks on end. If you speak Russian, you might be able to strike up a conversation. But five miles down the road at Sinemorets, it's a different story. There, English is widely understood. Amid a cluster of new guesthouses and gaudy second homes, hip Bulgaria is flexing its monetary muscles.

Mercedes and BMWs whisk their passengers from south Sofia's posh suburbs to this most exclusive of resorts, just 10 miles from the Turkish border. Sinemorets lies exposed on a windy hill, backed by the Strandzha nature reserve, with a panoramic view of the Black Sea. 
To the north lies one of the region's loveliest expanses of sand, a spit bordered to the west by the river Veleka, to the east by the sea. Top of the charts in the ornithological stakes, the protected wetlands of Strandzha are on the Via Pontica, one of Europe's motorways for migrating birds. You can see black storks, vultures, eagles, corncrakes and woodcocks. And if you take the six-hour trek into the remote mountains, you may see red deer, wild boars, martens, polecats, and even wolves. Only the Caucasus has a similar ecological profile. To the south, the green hazy coast with its countless inlets and windswept scrub is reminiscent of Kerry, Ireland, but without the rain. Soon the pinks, limes and lemons of the Bella Vista Beach Club are out of sight and you can walk for miles without seeing a soul. Paths weave their way through thickets of untouched oak and beech forest.  
 
Tentcho, a 78-year-old retired neurologist who fills his days cooking for his young wife, Irina, while complaining about the past and present, put me up in his guesthouse overlooking the bay. Over a mid-morning rakiya, the professor reminisced, telling me he'd resisted joining the Communist Party, with the result that he never reached the top of his profession. "I know why," he said. "Afterwards I found out that 60 per cent of my colleagues had been informing on me."

I nicknamed him Great Uncle Bulgaria, and the next day we drove out in his rusty, Womble-like Lada to the Turkish border for lunch. For decades, this was banned territory as the authorities erected a four-metre high electric fence to stop East Europeans escaping to Istanbul. 
Now that Bulgaria is a candidate to join the EU, they fear migration in the other direction, so it was no surprise when we were waved through this false border with hardly a glance.
"Bulgaria is always at a crossroads," said Tentcho, tucking into his kavarma (meat stew), as a horse and cart laden with freshly cut hay rolled by. "Geographically, it's between east and west, and politically it never knows where it is. We are not embracing western systems as fast as our neighbours. We know there's something wrong with out-and-out development, yet we are still letting it happen. The truth is we don't know what to do. We've never fitted in. We are the awkward Slavs." 
 
Travel cliches abound about wonderful friendly locals, but here they are true. I lost count of the number of times Bulgarians held out a helping hand, followed by an invitation to join them for a meal. Tentcho had a take on this, too: "Bulgarians love foreigners."

The patchwork of development is easy to see on the route north to Varna. Benidorm-style high-rises are followed by untouched beaches and forests. Because Bulgaria uses no chemicals on the land, the countryside is awash with wild flowers. It is also possible to wander at will: you'd be hard put to find a fence.

The Black Sea was a favoured spot for the ancient Greeks, and their colonies can still be seen. At Nessebur, reached by a narrow isthmus, you can pick out the outlines of the 6th century BC fortress on the seabed. Thracians, Romans and Byzantines converged on this spot, too, and the murals and icons in the churches are some of the finest around.

But it's the Bulgarian National Revival architecture that's worth your time: marvel at the two-storey houses, the ground floor in stone with an outside staircase to the timbered first floor. These 19th-century bourgeois homesteads are named after their original merchant owners: Muskoyanis, Ivan Markov, Captain Pavel, the Pipchenkov. They open their doors for a nominal entrance fee.

Before venturing out to the toasting 35C, sun-drenched vistas, linger awhile in one of Varna's best restaurants, the Paraklissa. Don't be put off because it's in the courtyard of the Museum of Medical History: the food is fresh and succulent. Try the St George's lamb, Bulgaria's national dish. You'll need all the protein you can get for the sun-and-sand experience ahead.

The Independent, 4th September 2005 

SKI SPECIAL

Bulgarian ski resorts boasting year-round rentals and yields of up to 12%, approximately double those available in the coastal resorts, claimed to offer the best option for investors

The Bulgarian market remains a speculative choice, notes investment specialists Assetz, with membership of the EU in 2007 still not ratified. The country’s immature economy is driven almost entirely by investors and there is no guaranteed resale market. But with property prices remaining some of the lowest in Europe and a burgeoning tourist market that is growing by 22% per year, Bulgaria is holding fast as a favourite for investors with a long-term view.

Ski resorts offer the best rental returns due to their year-round tourism capacity. The coastline, including resorts such as Sunny Beach, freezes throughout the winter and most of the local amenities close, but the ski resorts remain very much alive, offering summer activities such as hiking, fishing and mountain biking. As a result yields are considerably higher. A low cost of living (a pint of beer for example, costs 50 pence) combined with world-class ski facilities means Bulgaria is now providing healthy competition to the French and Austrian ski markets. Assetz has launched two developments off-plan to investors in the prime Bulgarian ski resorts of Bansko and Borovets. Thorough research has been carried out into the background of the developers to ensure they are reputable and credible. Ten apartments are for sale in Borovets which will complete in January 2006, priced from €76,961 for a studio (approximately £52,236) and €78,897 (£53,524) for a one-bedroom apartment. A guaranteed rental scheme is available offering a yield of nine per cent. Eleven apartments are for sale in Bansko, due to complete in March 2007, priced from €58,353 for a one-bedroom apartment, with ‘ski to your door’ access.

Peter Holden, UK and International Investment Manager for Assetz comments: “Prime skiing locations such as Bansko have strong long-term investment prospects, with the likelihood of securing guaranteed rental schemes with leading holiday companies who already operate in the area. Yields are essential for any Bulgarian investor, since capital gains of 20% last year may not continue to grow at such as rate if entry to the EU in 2007 is delayed.”

Full story here, http://www.newskys.co.uk/property_news/ski_special/1049/article.html

BULGARIA TOURISM UP

Judging by records from the 2004/05 winter season, Bulgaria saw the highest rate of growth in the number of British tourists compared to similar resorts in other countries.

Last year, 2.8 per cent of all UK tourists who travelled abroad visited Bulgaria, and in that one year alone, the number of British tourists visiting the country increased by 10,000. According to research done by UK-based website travelmole.com  British tourists saw Bulgaria’s low prices as one of the main reasons to holiday in the country.

Meanwhile, Bulgaria’s Tourism Agency announced last week that there were a number of hotels operating without having been properly categorised. According to agency chief executive Bissel Yalamov, about 170 hotels in Sunny Beach were not categorised, while 88 were and nine had applications pending. In Golden Sands, only 77 hotels were categorised and seven had submitted documents.

A lack of categorisation creates an awkward situation, because in terms of the Tourism Act, the Tourism Agency may inspect only those hotels that have been categorised or have applied for categorisation. Yalamov said that the agency could do nothing about the situation regarding hotels that had failed to apply.

Last week, from the northern Black Sea coast came news that a tourism complex with at least 25,000 beds is to be built in Shkorpilovtsi. The announcement was made by the mayor of Dolni Chiflik, Svetlo Yakimov. Should the project go ahead as planned, it will be the biggest on the northern Black Sea, exceeding by 1,000 the number of beds offered at the Golden Sands resort. Accommodation at the new resort is to include a five-star, 500-room hotel.

Full story here http://www.newskys.co.uk/property_news/bulgaria_tourism_up/1052/article.html

Linexa Property ready to invest 100 mln levs in Razlog area

The Linexa Property company has announced plans to invest around 100 mln levs in a sports and entertainment center near Razlog, a town situated in the foothills of the Pirin mountain some 150 km south of Sofia.

Moving To Bulgaria

Bulgarian property expert Phillippa Roberts offers her advice on buying in Bulgaria. What are the attractions of Bulgaria to anyone hoping to move abroad?

There are many attractions to Bulgaria but the recurring reason tends to be focused around investment potential. The country itself is largely rural, with acres of forest covered hills, sweeping valleys, unspoilt villages and warm coastline. This rural environment appeals to those people wishing to escape the busy hustle and bustle of working life. Add this to the unrivalled investment potential and it really is no surprise that people are realising what Bulgaria has to offer.

The Bulgarian Revolution: Get more building for your bucks in Bulgaria.

Buying Up Bulgaria: Bulgaria makes a good retirement destination.

Loire Longing: French property expert Sam Carter on buying in the Loire Valley.

Under The Tuscan Sun: Expert advice for anyone hoping to move to Tuscany.

 Where are the most popular areas to buy?

The most popular areas to buy depend on whether the purchaser is seeking to buy for investment reasons, or for personal reasons. The most popular regions for investment tend to be focused around the main towns, including locations such as Varna, Burgas, Pamporovo, Sofia aand of course Sunny Beach (Including St Vlas).

What can a buyer expect to get for £100,000 in Bulgaria?

For £100,000 a purchaser can expect to get a two bedroom off-plan apartment in an exclusive development in the sought after locale of St Vlas (Sveti Vlas). For example at £72,420 you would be able to purchase a 2 bedroom 3rd floor apartment, at 84.34 Sqm2 which would include the following facilities (and all the facilities of the neighbouring complexes in the Dinevi resort):

A plethora of pools including two for this complex, Pool Bar, 24 Hour Security, Beach, Piano Bar, Children’s Pool, Restaurants, Shops, Cable TV, Gym and Internet Café.

How does the buying process differ in Bulgaria to the UK?

The buying process does differ from the UK with the main difference being should any purchaser wish to purchase land, they will need to create a company to do so, as foreign nationals are not permitted to purchase Bulgarian land.

If the purchaser is purchasing newly constructed properties/apartments on a complex or resort then they do not need to create a company.

When a purchaser buys through ourselves we send out a standard preliminary contract which we advise be checked by a solicitor for the purchasers own peace of mind. If the purchaser is happy with the contract then they sign to confirm they will be proceeding with the purchase of that property. Payments are then made in three separate stages, with the final payment usually being made when the construction of the complex is completed. The purchaser would then need to visit a notary, passport in hand, for the ‘Notary Act’ to be signed and ownership transferred.

What should potential buyers look out for when buying a property in Bulgaria?

Potential buyers should look out for the long term investment potential of any area before they buy there. How will that area have matured over the coming years? Are there enough facilities there to support a growing community? One of the most important things to remember, especially if buying for investment purposes, is if/when you sell your property how will it compare to others available on the market at the time? Will your apartment be one of many, or does it have something to set it apart from the others and thereby have the potential to appeal to a wider market.

Are there any types of property you would advise potential investors against buying?

We would never presume to tell somebody what not to buy, however there are risks involved when purchasing any property abroad. For example, many of the older properties in Bulgaria, as picturesque as they are, can come with problems. If anyone were thinking of purchasing an older property we would recommend the purchaser check the ownership of the property as thoroughly as possible as it is not unusual for a property to be owned by several family members, and all must agree to a sale before it can proceed.

Have property prices increased in the last five years? If so, by how much on average?

Property prices have increased in the last five years and more recently the growth in the last year has been approximately 25%! Because Bulgaria is such a newly emerging market it is difficult to attribute an average growth, however an approximate figure of 20% to 25% a year would be reasonable.

How much do you think property prices are likely to increase in the next 5 years?

Property prices will no doubt increase in the next five years if this current trend continues but of course it is inherently difficult to predict any increase in the property markets around the world. However, if the current growth is sustained then we can expect to see an average increase of perhaps 25% year on year and would expect investors to see a 100% return over the next 3 to 4 years.

 Phillippa Roberts:

'Before buying in Bulgaria visit the country and thoroughly explore the region.'
 
What advice would you give to anyone considering buying a property in Bulgaria?

The best advice we could give anyone thinking of purchasing in Bulgaria would be to do their research, leaving no room for surprises. Visit the country and thoroughly explore the region they want to purchase in and of course the best recommendations come from people who have already made the move, so we would suggest getting in contact with those people who have already purchased. Discussion forums such as My Bulbaria.info are an invaluable source of information.

How safe is Bulgaria’s economy?

After the fall of communism in 1989 the country has steadily set about reforming, aided by the encouraging development that Bulgaria is scheduled to join the EU in 2007; the country is also a member of NATO. The Bulgarian Lev is pegged to the Euro, meaning it will not fluctuate independently. Of course, there are no guarantees as to the stability of any economy, but Bulgaria is certainly proving itself to be in a confident climate.

In your experience, do British expatriates in your region settle in well?

English is now taught in Bulgarian schools, and the majority of Bulgarians, especially in and around the towns and cities, generally speak a measure of English so the language should not be a barrier. The Bulgarians in general are a welcoming people and in St. Vlas, the region we sell the majority of our properties, we find that British expatriates soon feel at home.

Phillippa Roberts is a property consultant at Barrasford and Bird

The Bulgarian Revolution

Anyone hoping to retire overseas on a budget should look to Bulgaria and the E.U.’s expanding eastern border. Dale Lovell reports.

Thanks to recent property price rises in the UK, more and more of us are cashing in on the value of our homes and choosing to retire abroad, where the cost of living is cheaper. Spain and France have been the most popular retiree destinations among Brits in recent years, but because of this, property prices have gone up rivaling the UK in many sought after locations.

The ‘elderly exodus’ has hit property prices throughout the Mediterranean region. In Croatia for example, a twwo bbedroom ffllat will now set you back at least £200,000 in the more popular resorts. Hard to imagine when you think just 12 years ago the country was being ravaged by war.

But if you want to move abroad, but can’t afford to buy in the more popular destinations, Bulgaria could prove the perfect destination for you to invest for your retirement.

Although not joining the EU in May, Bulgaria has been formally invited to join in May 2007. After this date, property prices are likely to rise, so now could be the time to invest.

Indeed, Bulgaria has been touted by many in the know as a potential future property hotspot. International rreal estate agents Colliers International released figures this month highlighting positive trends for the emergence of a strong property market in Bulgaria. Colliers highlighted that a significant growth in mortgage financing boosted the market in 2003, which led to an increase in sale prices and forecasts a further increase in prices in 2004/5.

In comparison to UK prices, property in Bulgaria is still extremely cheap; An 80 Sqm in the prestigious Veliko Turnovo area of the Capital Sofia will set you back 27, 000 Euros (£18,000). With prices likely to increase with EU membership, as well as been a great retirement home, any Bulgarian property purchase could become a great investment too.

At the moment, however, buying a property in Bulgaria is a little laborious for foreigners. Under the Bulgarian act on Foreign Ownership, foreigners are not allowed to own land but they can own buildings. To get around this fact, foreigners can set up a Bulgarian company to hold the land for them. As the date for EU membership nears however, this formality is likely to change.

Bulgaria lies on the Black Sea and has summer temperatures to rival, if not better, the Mediterranean. And of course, good weather also means good wine, fruit and vegetables. It might not have the same facilities as Spain or France, just yet, but for a fraction of the cost you could retire in style. One to watch most definitely.
 

Buying Up Bulgaria

Cheap property prices and a good climate make Bulgaria a good retirement destination.

With entry-level prices grabbing the headlines at just £30,000, it’s easy to forget that Bulgaria has a great deal to offer in the prestige homes market, where a luxury penthouse will set you back less than the average humble terrace in Britain.

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The Bulgarian Revolution: Anyone hoping to retire overseas on a budget should look to Bulgaria and the E.U.’s expanding eastern border.
 
There exist some very affordable investment opportunities along the beautiful Black Sea coast. Prices at the summer resort of Sunny Beach and the ski resort of Bansko typically start from around £30,000 for a studio and £60,000 for a two bedroom apartment. Such bargains are a dim and distant memory in the British property market.

But if you are looking for something bigger and better you can find a luxury penthouse from as little as £100,000.

Sunny Beach is a Blue Flag beach resort offering golden sands and a similar climate to Spain's Costa Del Sol. The resort offers five star hotels, clubs, bars, restaurants, excellent shops, watersports facilities and three proposed golf courses. Yet a penthouse here - providing almost 1200 square foot of space, plus luxury bathrooms, air conditioning, balconies and sea views - can be found from just £109,051.

Prices in the Privilege, Panorama and Marina View Fort Beach apartment complexes include access to a private bay, plus luxury health, sports and leisure facilities. Bulgarian Developments, a specialist property consultancy dedicated to helping customers access the newly emerging and exciting investment opportunities in Bulgaria, recently sold an apartment here for £143,202 (€207,481).

Further inland, prices are equally attractive. In Bankso, a 1,700 sq. ft. apartment with balconies and mountain views, just 150 metres from the ski lift, can be yours for just £145,631 (€211,000). Offering a superb location for walking, mountain biking and skiing, the development includes a sauna, steam room, gymnasium and restaurant, plus use of the ski & boot lockers, parking, shop and 24 hour concierge service.

Such facilities are great news for potential investors looking for a rental return on their property. The five month ski season is expected to command 75% of the total rental revenue in the resort of Bansko, where £21 million has just been invsted on twelve new ski lifts and improving and creating new runs. But such high quality apartments offer year round rental opportunities from holiday makers drawn to hiking in the beautiful Pirin Mountains, horse riding, mountain biking, fishing and rock climbing.

For now, Bulgaria has some of the lowest property prices in Europe, but property prices have increased by around 25% in the last 12 months. The trend looks set to continue, as Bulgaria prepares to join the European Union in 2007, its economy is more stable and predictions are that property prices will continue to rise steadily and strongly.

Bulgaria is also the fastest growing tourist destination from the UK, with over 220km of beaches along the Black Sea and the Aegean Sea, plus stunning mountains, ski resorts and unspoilt countryside, blessed with dry, hot summers. Yet Bulgaria still has one of the lowest costs of living in Europe. A three course meal with wine costs just £5.10, while a 33cl bottle of beer costs just 30p. Getting there is becoming more affordable too, with budget airlines soon to offer flights to Black Sea airports, about three hours from Britain.

As new investors rush in, old hands look further afield: Eastern Europe's capital cities are no longer considered an exotic market 

The last foray by British property groups to the European mainland - in the 1970s - ended in ignominious retreat.

Consequently, most listed companies and fund managers spent the 1980s and 1990s licking their wounds and sticking to the domestic market they knew best.

Until recently, only a few solitary pioneers such as Freeport and Gerald Ronson's Heron International were very active on the Continent.

But in the past year, some of the most conservative names in the business have reassessed the situation.

Yields in Britain are among the lowest in Europe, with some properties in London's West End selling for outrageous prices - a few have exchanged hands at yields of as little as 3.6 per cent in recent months.

In addition, borrowing rates are higher, giving investors a painful double whammy.

As a result, many managers are inclined to head for other countries despite the operational risks.

Schroders, Insight Investment, Prudential, Henderson and Grosvenor are among the fund managers to have announced big European investments. Capital & Regional, the listed co-investing fund manager, has just set up a German fund.

They have been joined by a throng of other buyers - Irish consortia, private British companies and individual investors as well as various international investors.

Some of these are taking the logic further. Paris and Milan may offer better returns than London, they say, but eastern Europe has even higher yields.

According to research published this week by Savills, the agents, yields in Warsaw and Prague are above 7.5 per cent but they are below 5 per cent in London, Dublin, Madrid, Zurich and Paris.

A few years ago it was mainly US opportunity funds run by Heitman, the real estate investment management firm, that were buying office blocks and shops in central and eastern Europe.

Now, however, the presence of conventional institutions such as Morley, ING or Germany's DIFA is unlikely to raise eyebrows in cities such as Prague.

Invesco Real Estate closed its second Central European Real Property Fund in January and is just completing a second closing, which is expected to take the fund up to Euros 700m (Pounds 480m).

Paul Kennedy, Invesco's head of research, says attitudes have changed significantly. "What is happening is, particularly in core Prague, core Warsaw and core Budapest, these markets have gone from being markets that are targeted by opportunistic investors or brave core investors to the Prudentials of this world."

The higher yields of central and eastern Europe, say some, reflect certain risks: unemployment is high, prospects for growth in gross domestic product are unclear and property ownership rights can be opaque.

Yet some experts warn that it is no longer easy to make phenomenal returns in central Europe, given that prices have already jumped and competition for deals is fierce. Brenna O'Roarty, head of European research at Deutsche Bank Real Estate, asks: "When you look at certain office markets in Hungary and the Czech Republic and then you look at a less risky market like Sweden, where yields are not that much lower, does it justify the risk?"

As a result, some of the more seasoned operators are starting to comb more obscure markets.

For some, this means secondary or tertiary cities in central Europe.

For others, it means trawling countries that have not yet joined the European Union, such as Romania and Bulgaria, or others, such as Russia and Ukraine, that may never do so.

A host of start-up funds and companies, often aimed at niche markets such as residential property in Bulgaria's Black Sea coastline, have appeared.

The market has seen flotations by Lewis Charles Sofia Property Fund, aimed at Bulgaria, First Croatia Properties, aimed at Croatia, and Dawnay Day Carpathian, which hopes to spend Pounds 750m on retail property across eastern Europe.

Grainger Trust, the residential property group, has started a joint venture in the Baltic States.

While most operators still blanche at the thought of Russia's opaque property market, others are keen.

Anton Bilton, a property entrepreneur, has set up a new Aim-listed vehicle called Raven Russia to invest in warehouses.

Invesco's latest fund is authorised to invest in Russia as well as Poland, Hungary and the Czech Republic.

Mr Kennedy, at Invesco, says: "Russia is a very challenging market but we think there are reasons to go in and invest sensibly. You can still get decent yields of 11 to 12 per cent for decent office buildings."

by Jim Pickard, Property Correspondent

see the original article here

 http://www.firstnews.com.ua/en/business/business.html?id=86167

BULGARIAN TAXI FEES JUMP BY 30% - REPORT

Taxi rides are expected to grow pricier by 20-30%, a press report said Saturday citing taxi companies in Sofia.

The recent drastic increase in fuel prices will bring the new taxi fees by the end of September, Trud daily said.

They cited a local company's forecast of one quarter of a Euro daytime fee per kilometer. Currently it is much less!.

After 10p.m, a kilometer's ride will cost BGN 0.58, (approximately 30 cents) the taxi company has said.

Public trams and buses, as well as trains, are still not planning hikes, the article says.

Still, there are fears that the worldwide petrol crisis will trigger boosted inflation in Bulgaria.

With the country's average wage of some 150 euros, fuel is an out-of-reach luxury for many people already. Current prices are about 1 euro per litre.

Bulgarian property investors hit the slopes

 Ski resorts could offer the best value for people looking to invest in Bulgarian Those seeking to invest in buy-to-let property in Bulgaria could do worse than head to the mountains, a new report finds.
Assetz, a leading UK property investment specialist, reveals today that ski resorts offer year-round rentals and up to 12 per cent in yields, around twice the returns available in the coastal resorts.

"Prime skiing locations such as Bansko have strong long-term investment prospects, with the likelihood of securing guaranteed rental schemes with leading holiday companies who already operate in the area," said Peter Holden, UK and international investment manager for Assetz.

"Yields are essential for any Bulgarian investor, since capital gains of 20 per cent last year may not continue to grow at such as rate if entry to the EU in 2007 fails."

But the property investment firm warned that Bulgarian market still represents a speculative investment.

With membership to the EU in 2007 still uncertain, an immature property market driven by investors means there is no guaranteed resale market, Assetz warns.

However, some of the lowest house prices in Europe and a booming growing tourist market make Bulgaria a favourite for long-term investors.

Mr Holden added: "Generally, investors should be aware of the apparently 'bargain' deals in Bulgaria citing properties for under €30,000, which are likely to be located in the more rural areas and are will not enjoy such high growth rates and rental yields. At Sunny Beach and other coastal areas, a property that is not right on the beachfront will not currently make a viable rental prospect.

"All investors should be aware that Bulgaria is still a speculative market, therefore those looking for a quick fix to a pension shortfall would be better off looking to more established markets such as France or Spain."

Thursday, 01 Sep 2005 16:55 Original story here  http://www.myfinances.co.uk/property/housing-market/buying-overseas-property/bulgarian-property-investors-hit-slopes-$15034677.htm

Bulgaria's Tourism Formula "Messed Up"

Bulgaria, Turkey, Croatia, Egypt and Tunis are becoming tourism hotspots for the European tourists replacing the posh Italian and Spanish resorts, Deutsche Welle radio reported.

Still, there is something completely messed up in Bulgaria's tourism formula.

Data shows that the tourism sector in Bulgaria is going up five times faster than the world's is, the radio pointed out. Bulgaria's Economy Ministry reported that back in 2004 the number of foreign tourists coming to the country has exceeded 4,5 million. Most of the tourists came from the Great Britain, Germany, US, Japan and Egypt. Statistics also shows the tourism sector has marked an increase of 25% as compared to 2003 and the turnover registered stood at USD 2 B.

That is all undoubtedly a major factor, but experts warn that what really matters is the number of the tourists coming back to Bulgaria, Deutsche Welle stated. It cited another survey of the Economy Ministry, which revealed that at least 85% of the foreign tourists are positive that they will return to Bulgaria.

Deutsche Welle pondered over how Bulgaria could expand its positions in the tourism sector. So far the country has hardly conquered 1% of the European tourism market.

If we have to summarize all the pieces of the "Bulgaria" puzzle, we have to concentrate on the first piece - Bulgaria a cheap destination, the radio said in its report. It then focused on beautiful sights, golden sands, and spacious beaches.

Still, over the last years the smell of the Bulgarian rose has been mixed up with the dusts, the petrol vapours and major concrete buildings, which spread over the Black sea coast. Deutsche Welle was critical over the continuing construction works, the poor hospitality conditions and the badly organized holidays.

In its report the German media stated that Bulgaria's tourism formula "minimal efforts -maximal results" will work on for another few seasons to end up completely messed up.

Bulgaria can offer something completely different. It has its own uniqueness, which could be sold to the foreign tourists, the German media

Source - Novinite.com.  2005-08-30

 Alan Greenspan said  Saturday (27.09.05) that the nation's frenzied housing boom - along with the consumer spending that it has spurred - is close to ending.

Mr. Greenspan quoted the excesses of the housing market and the Countries unprecedented dependence on foreign borrowing were both likely to correct themselves through the normal function of market forces.

He also acknowledged heavier than he has done in the past that the boom in  housing which has been fueled in large part by the Fed's own decision to bolster the economy with low interest rates, is closely tied to the nation's soaring trade deficit as well as its record level of foreign indebtedness.

However Mr. Greenspan also wanted to make the public aware that is previous record was defended against critics who say his policies contributed to the United States' imbalances, these may lead to higher interest rates and potentially large declines in housing prices and consumer spending.

"We have a problem. We have a policy that is adding to, adding to the systemic risk by subsidizing investors to take greater risks," said Michael Mussa, a senior fellow at the Institute for International Economics and a former director of research at the International Monetary Fund.

In Mr. Greenspan's view, the housing market will inevitably "simmer down," and sales and prices are all but certain to slow. "House turnover will decline from currently historic levels, while home price increases will slow and prices could even decrease," he said.

Mr. Greenspan's prediction that prices could actually decline aligned with other recent warnings that people have become too confident that the market value of assets will remain high for the foreseeable future.

But he went further, saying that the end of the housing boom would also help correct other major imbalances. It would lead to weaker consumer spending, a recovery from today's nearly nonexistent rate of household savings and a reduction in the nation's huge trade deficit.

"An end to the housing boom could induce a significant rise in the personal saving rate, a decline in imports and a corresponding improvement in the current account deficit," he said. Whether those changes are "wrenching," he said, will depend on whether the United States remains flexible and avoids over-regulation and barriers to trade.

Mr. Greenspan was gloomier about the nation's long-term budget deficits, which skyrocketed after President Bush took office. He said today's budget deficits were likely to get far worse as the nation's baby boomers begin to retire and drive up the costs of Medicare, Social Security and other entitlement programs.

Regardless of how the deficit is reined in, Mr. Greenspan said, rising federal deficits and overall government debt will, if not reduced, force the Federal Reserve to raise interest rates to prevent future inflation.

"We had too much experience with the dangers of inflation in the 1970's to tolerate going through another bout of dispiriting stagflation," he said. "The consequences for future workers and retirees could be daunting."

August 28, 2005

Property analysts warn of Spanish building over supply

Overseas property investment experts have voiced alarm at the potential oversupply of new build homes in Spain. One analyst said that the 750,000 new homes forecast for 2005 is an "incredible and unsustainable" situation.

Analysts have pointed to the ratio of properties under construction to the national housing stock, currently four per cent compared to the European average of approximately one per cent.

"Two hundred and forty five thousand new households were created in Spain during 2004, according to the Institute of National Statistics (INE), whilst demand for second homes was around 200,000," Nick Tyrell, vice president of the JP Morgan Fleming Bank told Spanish Property Insight.

"The sum of these two figures represents real demand for property in Spain, and does not match the 750,000 house starts of last year. This mismatch between demand and new supply is a risk that does not exist in the UK," he added.

JP Morgan figures indicate that there were 150,000 new homes constructed in the UK last year, while the British Population is 50 per cent larger than Spain's.

Figures indicate that property currently represents somewhere in the region of 40 per cent of all capital investment in Spain, with a sizable proportion of all Spanish economic growth attributed to the property boom that began in the mid nineties.

Over the course of 2004, Spain saw more new houses built than Germany, France and Italy combined, continuing a remarkable trend that has resulted in over 20 per cent of all Spanish properties being built over the past decade.

Popular locations including Barcelona, Marbella and the Costa del Sol have seen a dramatic surge in house-building, much of it illegal, and it is unclear how much of it has been purely speculative in relation to the level of demand for property.

It has been speculated that the Spanish property market could see a slump in house prices if interest rates rose, economic growth continues to slow, and EU subsidies dry up. This could spell bad news for sellers and investors, especially if the new build property boom was to continue apace.

Problems would more likely affect people living in Spain, which currently has one of the highest owner-occupancy rates in Europe at 90 per cent. For foreign investors a key concern is that an oversupply of cheaper properties in popular holiday locations is making it more difficult for investors to put down deposits on off-plan properties and then sell them on at profit before final completion

Many of these investors are finding themselves without prospective buyers, making the "off plan" property purchase scheme largely unworkable and Assetz, a property investment specialist has advised against buying off-plan to sell before completion if you don't have the funds to complete if you find you need to. As a long term rental investment Stuart Law, Managing Director of Assetz said "Spain will always be one of the few top destinations or the British with short flight times, excellent weather, a long season and excellent english spoken by many locals. Investors buying for the long term are still getting a good deal at todays prices especially as it is our view European mortgage interest rates will remain around the 3% mark for a long time to come as Europe continues to try to improve its economy.

European Real Estate Sees Continued Influx of Investment

Investment yields are improving around the continent, despite low vacancy rates. Just like in the United States, the market for fully leased investment property is hot in Europe. One only has to look at the escalated prices in London to feel the heat.

“London has always out performed other European markets, but it keeps going up,” said David Perry, vice president of NAI Europe. “London is off the scale. Supply and demand there is enormous.”

NAI Europe is part of NAI Global, a managed network of commercial real estate firms. Based in Princeton, N.J., the group has more than 300 offices in 40 countries.

Other locations within the United Kingdom are positioning themselves for growth. In Wales, an initiative is underway that could see 1 million square feet of speculative office space during the next decade.

Unveiled in February, the new Welsh Investment Strategic Partnership is planning the first three-office schemes to be built in Swansea, Newport and Treforest. These developments will range in size from 30,000 to 40,000 square feet. Consortiums of banks, developers and building contractors are already being formed to bid on the projects.

Meanwhile, companies like France-based Sintel are opening subsidiary offices in Rome to take advantage of market opportunities there. Italy has a tradition of ICT (information and communication technology) innovation, yet it is also attracting businesses expanding in new areas such as biotechnology and nanotechnology.

Capital Flows of Money

Driving overall demand in Europe’s real estate markets continues to be capital flows with huge sums being invested from German open-ended funds, opportunity funds, institutional investors and other collective vehicles.

All this despite the fact that overall economic growth in the European Union (EU) remains sluggish, around 1.9 percent for 2004.

“There is still a lot of money worldwide seeking product,” Perry said. “Property funds are buying fully leased assets, but there is a serious shortage of Class A space.”

Despite the fact markets across Europe have been weak because of low vacancy rates, investment yields are improving.

“This is historically unusual but is fueled by poor performance in the global stock markets,” Perry said.

The largest amount of money is coming from major German open funds, which are active outside of Germany because of that nation’s poorly performing economy.

“Curiously, we are seeing investors from other countries invest in Germany because yields, which have been extraordinary stable despite Germany’s economy, are softening,” Perry said.

Market Boosts

Paris has become an attractive city for investment since prices there are significantly cheaper than London. According to NAI, rents there are bottoming, particularly for new, large space.

“But Paris is a much smaller market,” Perry said.

A survey by the Urban Land Institute (ULI) and Pricewaterhouse Coopers entitled “Emerging Trends in Real Estate: Europe 2005” pegs Paris to be the top European property investment market to watch in 2005. The reasons are diversity, low vacancy rates and rising office occupancy rates. Milan was ranked No. 2, followed by London, Lyon and Brussels.

The survey cited Athens and Dublin as top markets in which to sell.

Helsinki, Warsaw and Budapest were listed as attractive buys. High-risk investors listed Istanbul and Moscow as their top choices for property investment. Shopping centers are expected to bring the best returns in 2005, followed by retail parks and warehouses.

“Traditional investment markets have now been joined by increasingly interesting markets in Central Europe,” Perry said. “These have done exceptionally well for investors as they become integrated into the EU. What is occurring is an equalization in yields with values going up.”

Giving many Central European and Baltic nations a boost was their incorporation into the EU. Last year, the EU expanded its membership from 15 to 25 nations with the addition of Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

With Bulgaria and Romania expected to join in 2007, the investment climate is fast improving as investors see these two countries as safer, yet largely untapped prospects.

Following a hesitating beginning in the post-Communist era, the real estate market in Romania has undergone a spectacular development mainly during the past five to six years. Giving the market a particular boost are international companies with their need for both production and storage facilities, as well as office space.

During the past six years, the Bucharest real estate market has practically become consistent with European quality and professionalism standards, yet it still has a long road to cover before reaching the size of other relevant markets in Europe.

Moscow has the second-best real estate development prospects of any city in Europe, but as far as the risks involved are concerned it is at the bottom of the list, according to the ULI/PricewaterhouseCoopers survey.

“Moscow’s office and retail sectors have high numbers of both ‘buy’ and ‘sell’ recommendations,” according to the survey. “This may seem inconsistent, but it is probably indicative of the fact that you have to take a view on numerous political and legal issues in addition to the usual risk/return concerns.”

Also, while Moscow returns remain high by European standards, the survey pointed to the limited scope for investment activity in the city, given the fact there are very few investment-grade properties and the market is dominated by “huge domestic equity capital that does not require the same risk premium as Western capital, nor does it engage in the same level of due diligence.”

But while Moscow weighed in last for risk, the Russian capital ranked No. 2 by total returns, rent increases, capital growth and development, surpassed only by Istanbul. Moscow is undersupplied in all sectors, the survey said. It has the lowest office vacancy rate of all the cities surveyed, it is significantly under-shopped, has strong demand for residential real estate and hotels, while the industrial market is waiting to explode.

Overall, Europe’s real estate markets are not exploding at the seems, but interesting developments are taking place as it evolves and the EU expands.

  [ 8/10/2005 ]  By: Karen E. Thuermer   Karen E. Thuermer is a freelance business writer based in Alexandria, Va.
 

BULGARIAN BONANZA

With the words investment and capital appreciation closely associated with the emerging market of Bulgaria, The Right Move Abroad now bring to the marketplace a strong investment opportunity in the form of Breza apartments in the Central Park area of Sofia

Most opportunities to invest in Bulgaria that are widely available to the British market are the coastal areas and the renowned ski resorts. However, The Right Move Abroad are now marketing Breza apartments in central Sofia, an outstanding opportunity to invest in a prestigious city area that offers all the attractions and benefits that major cities can offer and with the chance to gain the highest return possible on original investments.

Michael Johns, company director of The Right Move Abroad, says, “This is a unique opportunity for those in the UK to invest in an emerging market that has in previous years out-performed even the best expectations and will continue to do so for the foreseeable future. Bulgaria is certainly one of the most exciting market places in the ‘new’ eastern European countries that have emerged in recent years. There are great expectations for all property investments whether coastal or mountain retreats to keep performing above par. The beauty of Breza apartments is that this is the first time that we have been able to offer to the British market place, premier apartments within a city. The location of Breza is unparalleled being in one of the most sought after areas and we are expecting to see serious investors purchase all apartments off plan over a very short period of time, such is the expected return on investors original investments.”

Breza Apartments (Birch in English) are situated in the prestigious Lozenetz district of Sofia. Not only is it only a few metres away from the Central Park area it also is in close proximity to the South Park main shopping street in Vitosha Boulevard. In addition to this, it is within close walking distance to the main Cineplex, the biggest and most modern sports and swimming pool complex and the National Palace of Culture.

The apartments themselves are to be built to a high standard and will benefit from many extras. Living rooms and bedrooms will be laid with wooden parquet; there will be telephone, Internet and cable TV installations in each apartment along with video entry installation. There will also be a range of finishes available for purchasers to choose from as marketing is off plan and there are special packages for those looking for the developer to fully furnish the apartment before completion. There is also 24-hour security and video surveillance.

Johns adds, “These apartments really are cutting edge for Sofia and with the interest levels been so high for Breza already that those investing here can automatically be assured of a guaranteed rental income from the developer of seven per cent for the first year which is a tremendous return for the serious investor.”

Prices start for a one-bedroom apartment from £41,000, rising to £74,000 for a large two-bedroom apartment, and the development is due for completion in August 2006.

The Right Move Abroad will soon also be bringing to the market Silver City apartments in Sofia situated in the heart of this vibrant city close to the American Embassy. These apartments are again of a high quality and will even offer roof gardens along with splendid mountain views in the distance past Sofia.

ENGLAND BEATEN IN BULGARIA

England are finding life tough at the top of the European game as they lost 90-64 to hosts Bulgaria in the Sofia Awards Basketball tournament.

The defeat means they have little chance of finishing their summer programme by winning the four-team competition.

They made one of their best starts of the summer but found Bulgaria's fast break too hot to handle and again were punished for a lack of scoring from the bench.

Of the 130 points England have scored so far in Sofia, only 28 have come from the five non-starters.

England began with a 12-4 run with Julius Joseph, John Amaechi and Robert Reed exhibiting good passing to combine for their early scores.

Bulgaria recovered thanks to their strong defensive rebounding and seized an 18-16 lead with one minute remaining in the first quarter, before a two from Joseph, who then fed David Aliu for a three-pointer, showed England still had a say in the game.

Level 21-21 at the end of the first quarter, Joseph and Aliu hit further three-pointers to help establish a 28-26 lead within the first two minutes of the second quarter.

At this point, the wheels appeared to come off for England as their hosts scorched into the lead with a 16-1 run, ignited by two threes by Filip Bidenov, who went on to score 13 points in the quarter.

A late Andrew Bridge three-pointer kept England in the game, although they trailed 52-39 at the half-time interval.

England made the worst start possible to the third quarter, allowing an 11-4 Bulgarian run, in the midst of which starting point guard Germayne Forbes received a fourth foul and was taken out of the game by coach Peter Scantlebury.

In Forbes' absence, Bulgaria stretched the lead by putting pressure on England's ball-carriers and ended the quarter 74-51 ahead.

After a Joseph three, Bulgaria went on a 9-0 run to lead by 29 points at the start of what was to be a miserable quarter for England.

Joseph scored four of only eight points the team managed in eight minutes and Bulgaria extended their lead to 31 points (90-59) before a three-point play by Forbes and a coast-to-coast drive by Pierre Henry-Fontaine brought England a minimal consolation.

Despite the defeat, England still appear likely to finish second in the tournament if they beat minnows Cyprus in their final game on Sunday, and assuming Bulgaria do not trip up against FYR Macedonia.

Bulgaria is a destination for property investors

Britishers are now Bulgaria-bound to own foreign properties. The erstwhile communist country is a sure-shot destination for many to invest in the property business with an intention to reap some quick profits. The entire coastline of the country is attracting property investors, according to a study in the Sunday Times. These investments are not just for purposes of owning a holiday home or a studio accommodation to spend a vacation.

On the contrary, investors are pouring in hordes, attracted by the price and the prospects of early returns, the study said. In a bylined article, the paper said, "Old-style communist resorts that were once the summer playground of Russian, Czech and Polish workers are being demolished and replaced by a Balkan version of the Costa del Sol. In scenes familiar from the Spain of the 1970s and1980s, virgin coast is filling rapidly with apartment blocks and prices are climbing steadily. The price of land, meanwhile, is going through the roof: plots five or 10 miles inland are being snapped up even if the sea views are so distant that you need a telescope.” The Observer paper too came out with a similar report saying increasing number of Britishers are buying second homes in Bulgaria.

The paper quoted 25-year-old Scott Love who, along with his girlfriend Claire Spencer, bought a place in the Emerald Beach Resort in Revda for euro 36,000: "It's very unspoilt, the people are nice and the beaches are beautiful," Scott will have facilities in the resort like a private beach, pools and restaurants. Anyone travelling by air to Bulgaria are bombarded with advertisements for property in the country. And once a person lands there, estate agents are dime a dozen, offering luxury villas and flats with exclusive sea view for a pittance. Though property prices in the country have gone up by 40 to 50 percent in the last one year alone, yet a flat or a villa here comes at a bargain compared with prices say in Spain, leave aside in Britain.

Bulgaria has a 100-mile coastline stretching towards the country's borders with Turkey. The beaches are sunny and peaceful. Near one such beaches, in the ancient city of Nessebar, is located the world heritage site, which had a Greek colony of 6th century B.C. There is the luxury of golf now in this country, as at least two golf courses are coming up at Kavarna. There are plans for more. Besides, there are several traditional spas with facilities for processes such as mud treatments. The areas that attract foreigners are Sunny Beach, Ravda, where a Manchester-based Bulgaria Revealed has set up a luxurious resort called Emerald, and Kavarna, where Bulgarian Properties has started construction of Saint Nicola Lodge. The newspaper report says that the investments are mostly not intended to own a place for stay during a vacation.

Most of the people do it for higher returns on resale. One such investor is Jeremy Leach, 34,an IT specialist from Reading. He saw the scope some two years ago and invested in two flats, a village house and in some land. He says he has already doubled his money. He sold a flat, in Varna, in April for a healthy profit after just over a year. But, he has not been lucky when he tried to sell his second flat in Sunny Beach. It is yet to get a customer. This is a warning for those who come with money now merely seek to double it.

Experts feel the bargain prices may rise to European levels soon, mainly because the country is likely to join the EU in 2007 while the two low-cost airlines, Ryanair and EasyJet, are planning to operate to Bulgaria. 

 Published on : Mon, 22 Aug 2005 13:05     By : Phil Bateman 
 

Overseas Property, Bulgaria Black Sea Bonanza

It begins on the plane from Britain: pick up a copy of the in-flight magazine of Bulgaria Air, and almost every other page carries an ad for the latest Black Sea apartment complex, each apparently more glittering, splendid and - above all - profitable than the last.

Pitch up in Sunny Beach, the brash heart of the coast, and the streets are full of estate agents peddling luxury flats and seaside villas. People go on holiday here, it seems, as much to snap up property bargains as to lie on the sand.

"There must be 40 or 50 agents here now, but very few of them have any experience or know what they are doing," says Mihail Chobanov, 30, co-founder of Bulgarian Properties, one of the country's best established agents, whose little office in the resort is already surrounded by several clones. "You get one kiosk selling clothes, the next one selling hamburgers and the one in the middle selling property."

The Bulgarian property market is booming. Old-style communist resorts that were once the summer playground of Russian, Czech and Polish workers are being demolished and replaced by a Balkan version of the Costa del Sol. In scenes familiar from the Spain of the 1970s and 1980s, virgin coast is filling rapidly with apartment blocks and prices are climbing steadily. The price of land, meanwhile, is going through the roof: plots five or 10 miles inland are being snapped up even if the sea views are so distant that you need a telescope.

Curiously, though, the boom is being driven largely not by people looking for holiday homes for their own use but by investors lured by rock-bottom prices and the hope of rapid returns.

The Bulgarian coast, stretching for more than 100 miles between the Romanian and Turkish borders, certainly has much to offer. Those seeking sun, cheap beer and noisy nightlife will make for Sunny Beach or the slightly leafier Golden Sands - known respectively as Slanchev Bryag and Zlatni Pyasatsi to Bulgarians, they have been rebranded under English names for the British market. Other more upmarket resorts are also springing up in quieter coastal locations. And in the ancient city of Nessebar, about a mile south of Sunny Beach, the Bulgarian coast can boast a world heritage site that was already a Greek colony in the 6th century BC.

Golf, the great motor behind much Spanish property development, is also on its way. Gary Player, the South African veteran, is involved in developing two courses near Kavarna. Others are planned, with a mixture of foreign and Bulgarian backers. There is also talk of exploiting the country's traditional spas and exotic mud treatments.

The growing interest is reflected in the tourist numbers, especially from the UK. More than 250,000 of us went on holiday to Bulgaria last year - 62% more than in 2003 and more than three times as many as in 2001. The overall number of visitors, at just over 4m, was up 14%.

Many Brits have been combining holidays with a little judicial home-buying, lured to Bulgaria by developers offering low prices and promises of high yields and double-digit growth. Much of the action is off-plan, with some investors already cashing in and selling on flats during the typical 15 months it takes to build them.

Despite 40%-50% increases in the past year or so, property remains remarkably cheap by Spanish, let alone British, standards.  Remember to check out the soundproofing, too: at the height of the season, the music in the open-air bars is still pounding at 3am.

Moving up the scale, Manchester-based Bulgaria Revealed is about to start selling flats in Emerald, a luxurious resort at Ravda, a few miles from Sunny Beach. Building began only this summer, but the developers are confident it will be ready in time for the high season next year. To sweeten the deal further, there is a guaranteed yield of 4.5% next year, followed by 7% in 2007.

"We are going to install a webcam so people can see, 24 hours a day, their apartment being built," says Maria Chepova of Pioneer Development, which is constructing the complex, as she picks her way through the muddy building site with Mina Valcheva, one of Bulgaria Revealed's property agents.

Near Kavarna, Bulgarian Properties is offering an even more generous 9% guaranteed annual yield - albeit only for an initial 18 months - on its Saint Nicola Lodge of 18 one-bed and nine two-bed flats. Due to be completed in May 2006, the units - all with sea views  include a  penthouse with two bedrooms.

It would be foolish, though, to base a long-term strategy on rent guarantees that are limited in time and difficult to enforce if things go wrong. With most purchasers buying to let, everything depends on the ease of finding tenants and how much they are prepared to pay. The holiday business in Bulgaria is largely package tour-based, so this normally means finding an agent dealing with Balkan Holidays or other operators, who will rent your flat for the season.

Unlike Spain, with its mild winters, the Bulgarian season lasts a maximum of 120 days; the beaches that seemed so welcoming in July and August can be dusted with snow in January and February. So just a few weeks empty during the season can cut quite sharply into your return.

But, as Jeremy Leach, 34, an IT specialist from Reading, has discovered, there is certainly money to be made. Since spotting Bulgaria's potential two years ago, he has invested more than 110,000 in two flats on the coast, a village house in Nikolaevka, 14 miles inland, and some land - and reckons to have doubled his money already.

Whether this will continue to be the case remains to be seen. After selling on the first flat, in Varna, in April for a healthy profit after just over a year, he has tried to repeat the trick with a second apartment he bought for 46,000 in the Fort Knox development in Sunny Beach. Three months later, it is still on the market.

"It seems easier for people to sell off-plan apartments than real ones, because they have huge marketing campaigns for them and everybody is trying to grab them before they go. But if they do have some flats left over once the building is finished, the development companies don't have so much to spend on the marketing."

Although Leach remains bullish, the difficulty he is having in disposing of his latest apartment is seen by some experts as a warning sign of trouble ahead. According to this pessimistic scenario, the bargain prices that are Bulgaria's main selling point will gradually converge towards European levels, especially once the country has joined the EU, likely in 2007. If this in turn dampens the growth in tourist numbers, they warn, then the tour operators will cut the amount they pay to rent flats, squeezing yields.

Patrick Berger, who has analysed the Black Sea property market for CA-IB, an investment bank that specialises in emerging Europe, is concerned at the sheer size of the flood of British and other Western money pouring into Bulgaria in search of investment projects. He fears the result could be the kind of overbuilding that has blighted much of the Costas.

"If you want to make a profit, then invest now, but you need to monitor developments and time your exit from the market carefully," Berger says.

"It's not something where you can invest and then just go to sleep at night, because overnight they might start building a mega-complex next to you."

Jonty Crossick, co-founder of Brighton-based Ready 2 Rent, which has already sold more than 130 flats off-plan in Bulgaria for other developers and is developing three complexes at Kranevo, Obzor and Akutino, has little time for such doom-mongering.

As Crossick sees it, high economic growth and foreign investment, rising tourist numbers, a stable currency and political system and impending EU membership make for an irresistible combination. A further boost is likely to come from the eventual arrival of low-cost airlines that will bring in individual tourists alongside those on packages.

"Once Ryanair and EasyJet get in there, it will be a whole different ball game," says Crossick. "We wouldn't let our investors go into these off-plans unless we felt there was real demand. There has actually been a flattening off in the supply of developments, while tourist numbers are still going up. It's like Spain just before it joined the EU."

By Peter Conradi, Sunday Times, 25.08 2005

Which country you live in can affect your pension

You will not lose any state pension you have built up in the UK if you retire overseas, but you will only get it uprated in line with inflation if you live in certain countries.

About 400,000 of those British pensioners who live abroad get their pensions uprated in line with inflation, but about 550,000 do not because they live in Commonwealth countries.

If you retire in a country that is in the European Economic Area (EEA) or that has a reciprocal agreement with the UK your pension entitlement will increase with inflation, and you should check that your pension is being increased accordingly.

The EEA is made up of all European Union countries, and includes Austria, Belgium, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Republic of Ireland, Slovakia, Slovenia, Spain and Sweden plus Iceland, Liechtenstein and Norway.

  
The European Court of Human Rights in Strasbourg, where campaigners for pension equality are set to take their case
The UK has reciprocal arrangements with Barbados, Bermuda, Cyprus, Israel, Jamaica, Jersey and Guernsey, Malta, Mauritius, Philippines, Turkey, USA, Yugoslavia (and its former Republics).

Campaigners are arguing it is unfair that the state pension is raised if you live in certain counties, but not others.

The House of Lords rejected an appeal in May which may have changed things. The law lords' four-to-one majority ruling brought to an end a seven-year legal battle.

Annette Carson, 64, a writer who moved to South Africa in 1990, was selected by campaigners to be the test case.

Her pension is frozen at the 2001 level of £67.50 a week despite making full national insurance contributions, but if she still lived in the UK she would now be receiving £82.05, with a further increase due next April.

  
Annette Carson: court battle ended in disappointment
Some pensioners who emigrated to Commonwealth countries long ago still receive pensions as low as £6.75 a week against the current £82.05. Ironically, pensioners living in Spain, for example, are entitled to the Government's Winter Fuel Allowance on the same basis, but those in Canada are not.

The Department for Work and Pensions has estimated that it would cost up to £400m each year to give the annual increase to all British pensioners who decide to live abroad, a small sum compared to the total cost of state pensions of around £40 billion.

Campaigners are likely to pursue their case by taking it to the European Court of Human Rights in Strasbourg.

Graham Chrystie, of law firm Thomas Eggar, who represented Annette Carson, said: "It is expected it will go to Strasbourg. We feel we have a strong case to take to the European Court.

"Those affected have paid full national insurance contributions but are receiving a pension without indexation, and not even any of the other benefits such as national health and social security benefits.

"These people would not have paid their contributions had they known they were not going to get indexation and would have got a better deal putting their money into local pensions."

A spokesman for the Department for Work and Pensions said: "Annette Carson's case was a test case and the decision went against her. There are no plans to change the situation in those countries where pensions will be frozen. People should seek advice."

The Pension Service International Pension Centre (IPC) deals with queries about UK benefits payable to those living overseas. You can contact them on +44 191 218 7777.

Full Story from the Telegraph here http://www.telegraph.co.uk/global/main.jhtml?xml=/global/2005/08/18/elretiret.xml&sSheet=/global/2005/08/19/home.html

Bulgaria Looms as the Next Real-Estate Hotspot
 
A villa overlooking the Black Sea? Or a flat in the Bulgarian capital, Sofia? A country home with land? If you happened to be vacationing in the area this year, you might have noticed just how temptingly cheap all those properties for sale are.

Now you can take a chance on the market without going to the trouble of dealing with real-estate agents and lawyers. Several recent initial public offerings in London have been designed to raise money for the booming property market of Bulgaria. Some other share sales were aimed at the Russian market.

The catch-up between property values in Western and Eastern Europe isn't finished yet. Even as house-price bubbles burst in Western Europe, emerging markets such as Bulgaria may be immune.

Rapidly modernizing economies, rising investment and asset prices, and booming tourism, will keep property values climbing for years. In the long term, Eastern Europe's real-estate boom may stall as population growth wanes. Still, that's a long way off.

There is certainly no shortage of vehicles to put your money into. In London, several new companies have come to the market in the past few months raising funds to invest in Bulgaria.

Black Sea Property Fund Ltd. staged an IPO on London's Alternative Investment Market in March, raising 50 million pounds ($90.6 million) to invest in luxury holiday apartments in Bulgaria. It joined Bulgarian Property Developments Plc, which has been acquiring land for development in the country, which listed on the same market two months earlier.

Orchid Developments Group Ltd., a hotel and property development company operating in Bulgaria, listed its shares in London last month. Meanwhile, the Lewis Charles Sofia Property Fund, specializing in developments in and around Sofia, also plans a London share sale. It aims to raise 50 million pounds.

`Not Many Avenues'

Russia has also been attracting interest from investors wanting to take a punt on Eastern European property.

This month, Raven Russia Ltd. raised 153 million pounds in an IPO in London to invest in the Russian property market. That followed the listing of Eastern Property Holdings Ltd. in Switzerland in 2003. That company's share sale produced 50 million Swiss francs ($39.9 million) to put into Russian real estate.

``There's been a lot of interest in this sector this year,'' said Terry Olin, a spokesman for Eastern Property Holdings, in a telephone interview. ``There are not many avenues for private investors to get into this market.''

If the Bulgarian and Russian vehicles work, don't be surprised to see more companies specializing in the rest of emerging Europe.

Each enterprise is tapping slightly different markets, yet all of them are trying to take advantage of the same combination of cheap prices and booming economies.

European Demand

Black Sea Property, for example, is serving the growing trend for Europeans to buy real estate in other countries. ``Last year, 146,000 British people bought properties outside the U.K.,'' said Roger Hornett, London-based manager of the fund's property holdings, in a telephone interview.

``You can buy a two-bedroom luxury flat by the sea in Bulgaria for 40,000 pounds, which is less than the average British house has gone up in value by during the past two years. So we think there is going to be big demand from foreigners for holiday properties in the country.''

Bulgaria Beckons has a selection from just 10,000 pounds! www.BulgariaBeckons.com

Still, just because something is cheap doesn't make it a sure bet. The issue is whether the Russian and Eastern European property markets can keep expanding.

Reliable figures on trends in property prices are hard to compile, the U.K.'s Royal Institution of Chartered Surveyors said in its latest review of the market. There is little historical data and not enough information comparing properties over time.

``Despite little change in rents, investor demand in emerging Europe is surging across the board,'' the institution said. ``The primary driver is expectations for convergence in incomes over the medium to longer term to Western European levels, which will facilitate growth in rents.''

What kind of returns you might expect will vary. Hornett says the Bulgarian market has risen about 40 percent in the past two years. He predicts gains of at least 10 percent annually for the next three years.

That may be too optimistic. Still, equity markets across Eastern Europe remain strong. The Bulgarian stock market, for example, is up 32 percent this year. Asset prices are rising fast, and property is unlikely to be left out.

Economic Expansion

Growth is strong as well. This year, the Bulgarian economy may expand 5 percent, according to a Bloomberg News survey of five economists in August. Inflation is subdued and the government aims to join the European Union by 2007 and to sign up for the euro by 2010. There is little to make investors feel nervous.

In parts of Western Europe and the U.K., property prices have surged because of historically low interest rates and rising incomes. It looks like a bubble has developed. In Eastern Europe, real-estate prices are being driven by rapid economic growth and the need to replace low-quality housing. As people get richer, they spend more money on living somewhere nicer. It may be decades before that process is complete.

The boom in companies investing in markets such as Bulgaria isn't just a passing fad. Money is there to be made over the next few years.

Bulgaria may join Euro Zone in 2010

It is realistic for Bulgaria to introduce the euro in 2010 with the second wave, provided that the country joins the EU in 2007, according to a latest expert study.

The candidate countries from South-East Europe - Bulgaria and Romania - are making good progress on their way to the euro, Bank Austria Creditanstalt (BA-CA) says in a study named "Euro train running at two speeds".

Bulgaria and Romania will join the EU in 2007 provided they meet the required conditions, make the reforms and find ways to quickly resolve internal political turbulences. Their efforts will then focus on introducing the euro as soon as possible, the experts' report says.

The Bulgarian National Bank (BNB) has already engaged with the daten 2010 as timeline for adopting the euro.

Marianne Kager believed that Poland, the Czech Republic and Hungary will not join the euro area before 2010. "These three countries will significantly exceed the limit of 3% of GDP in 2005 and will continue to make only slow progress towards achieving the target. Moreover, the scope for action by