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Quoting unnamed officials at the Bulgarian-Russian Investment Forum as saying that Russian investors were "opting for partnerships with Bulgarian companies in order to start new casinos in Bulgaria", Bulgarian daily Standart said the country had a "golden opportunity to become the Las Vegas for Russian gamblers."

As reason for the Russian interest, Standart referred to a Russian decision to restrict casinos in four regions on July 1 2009.

Luring rich Russian gamblers, however, was not going to be easy, as the country would have to compete with the likes of Monte Carlo and London.

Blagoy Ragin, chair of the Bulgarian Hotel- and Restaurant-Keepers Association, was quoted as saying that "rich Russians would come only if there was a megacasino – giant, luxurious, and with a lot of extras."

Ragin said that such a megacasino would be "most becoming in the western part of the Sunny Beach resort," Standart said.

According to an unnamed source in the tourism sector quoted by Standart, businessmen were already hoping that gambling-loving Russian tourists would "be the prime saviours of this summer's holiday season at the Bulgarian seaside."

Source: The Sofia Echo

Real Estate experts Cushman and Wakefield have stated that Bulgaria is one of the countries in Europe with the possibility of having a more robust short term economic performance.

In its bi-monthly report Cushman and Wakefield suggested that there are signs of an economic recovery in some parts of Europe.

They stated; "It's certainly true that the public's imagination has been caught. A quick look at Google shows a marked increase in stories related to ‘green shoots' appearing this spring, along with a corresponding fall in ‘recession' stories."

The report went on to state that "in the short term, more robust performances are expected by Greece, Norway and France in the West and Poland, followed by the Czech Republic, Slovakia and Bulgaria in the East."

The report concluded by saying that new property investors should act in anticipation of economic stabilization and that existing players are already getting ready to act.

Source: Sofia News Agency

Bulgaria is regaining its popularity with British real estate buyers, according to the first quarter results of major UK portal Property Abroad. Bulgaria became a preferred destination during the real estate boom, but credit crunch in 2008 and the sudden oversupply on the local market have altered market dynamics.

Still, Bulgaria has managed to reclaim some lost territory, according to Property Abroad director Les Calvert. "Not a major jump by any stretch of the imagination, but for us, immersed in the industry, watching and reading the negative press about Bulgaria and seeing thousands of British buyers rushing to sell-up, this is quite a pleasant surprise for us," he said.

Such is the story of Carl Froch, World Boxing Council super middleweight champion, who bought property in Bulgaria from Joe Upchurch, managing director of Aston Lloyd.

Froch has said that his purchase of property in Bulgaria was "just as satisfying as delivering a well-placed left hook", and it is likely to prove a lucrative one, as well.

"What is the point of having money in the bank which is earning nothing?" said Froch, 31, who hails from Nottingham. "I have been investing between 8800 and 44 000 pounds sterling in property in Bulgaria and Turkey over the past 12 months."

Froch has poured money into small flats with the intention of renting them out to local residents, rather than seasonal holidaymakers.

According to the Daily Mail, in 2008 revenue generated by tourists rose by 8.4 per cent over the previous year, with demand from foreign visitors and Bulgarian nationals expected to remain stable in 2009, particularly along the Black Sea coast. The healthy forecasts are attributed to the advertising campaign backed by the Bulgarian Government, worth the equivalent of 3.5 million pounds sterling, meant to promote tourism.

"The rise can be accredited to Bulgaria's economic performance: Bulgaria is now one of only four European Union member states forecast to avoid recession this year, and forecast to do so in the most impressive way; strong growth with a firm handle on the budget deficit. That and the low-prices of course," analyst Julie Liddle said, quoted by Property Abroad.

The British based firm is currently in the market in Bulgaria, advertising hundreds of real estate for rent, sale, resale and off plan, available for less than 10 000 pounds sterling.

Ross Elder, managing director of holidaylettings.co.uk, was quoted as saying by the Daily Mail: "Inquiries for Bulgaria in the first quarter of 2009 are up nine per cent. It's a fantastic holiday option if you are seeking value for money on accommodation, flights and food."

Simon Conn, a property consultant for the 58-room four-star apartment hotel in Kostinbrod, close to Sofia, where Carl Froch has invested in a suite, has said: "In good city locations, such as Sofia and the better-quality coastal developments, there are long-term possibilities."


Source: The Sofia Echo

David Darmanin

In 2006, Dhalia Investments set their eyes on a stretch of land facing an 18-hole golf course beneath the Pirin Mountains in southwest Bulgaria. After commissioning a world-renowned project management firm to develop the plot, a luxury apartment complex comprising 150 units, a spa, a restaurant and other facilities now nears completion.
Meanwhile, Dhalia owner Chris Grech forms a new company representing the ownership of the complex and brings on board two independent financial and management moguls as co-directors. In the next months, 150 new shareholders are expected to invest into this new company so that they can each enjoy a quota to spend their holidays at the complex; acquire dividends through short-lets to third parties; and finally reap the full investment benefit once the complex is sold off in 2017.

Choosing Bulgaria
When Dhalia had decided to venture into overseas investments four years ago, Chris Grech and Dhalia Group Executive Chairman Franco Valletta had toured Eastern Europe seeking new prospects of investment. Neither Albania, nor any other Balkan country including Croatia, Czech Republic and Slovenia fit the bill. Bulgaria on the other hand, was what they seemed to be after.
“Bulgaria is the smallest of all Eastern European countries – and this has clear advantages. When we were looking around in 2006, Bulgaria’s accession to the EU was just round the corner and the growing rate of tourism was very promising,” Grech explains.
In 2006, tourism in Bulgaria was increasing by 20 per cent each year – a significantly higher rate than that of Croatia, Slovenia and Romania.
“The Bulgarian workforce is also very highly educated,” Grech said, although he later remarked that the country has “a reputation for work that at times looks shoddy”. For this reason, Dhalia commissioned none other but Vector as their contractors – the UK group behind the construction of Heathrow Terminal 5 among others.
Grech chose Bulgaria also because “the destination is accessible by direct flight and there is a strong rapport between Malta and Bulgaria.”
But most of all, once his primary intention was to develop apartments for holiday rental, the village of Bansko proved ideal because it is an all year round destination.
Bansko is somehow perceived by locals as the St Moritz of the Balkans – albeit drastically cheaper and significantly busier in summer. Because it is set amid the Pirin Mountains, in winter, Bansko is packed with skiing tourists - most of whom German. The nearby mountains comprise 11 marked ski runs and four ski tracks, with a total ski area extending 65km in length.
But as summer draws nearer and the skiing season ends, the area keeps buzzing.
The Maltese development faces the Razlog 18-hole golf course designed by Ian Woosnam. Besides, many other summer activities and excursions are popular in the area. Such include whitewater rafting, horse riding, mountain biking, trekking, rambling, game hunting and quad biking.
Before picking Bansko however, Grech and Valletta looked into different alternative spots around Bulgaria – both “within the inner city as well as out of town.” But they gladly settled for Bansko to construct what they later dubbed “The Balkan Jewel”.

The Balkan Jewel
“We did not just want to build a residential resort but also a tourist complex – in a similar way an apart-hotel is designed,” Grech said. “The Balkan Jewel will in fact offer a host of in-house services and activities – such as a spa, a restaurant as well as transport and booking services for excursions and amenities in the area.”
According to Dhalia’s contract with Colliers, 120 of the 150 apartments in the Balkan Jewel must be allocated for rental purposes.
Initially, Dhalia intended selling 20 of the apartments to Maltese investors for private use, but thanks to an overwhelming response in Malta, they ended up selling 70 units. The new owners of 40 of the units sold agreed to the condition of handing their properties to Colliers for third party lease.
The ownership of the remaining 80 apartments will now fall under the wing of the Bulgaria-registered company Balkan Jewel EOED, whose board is composed of Chris Grech himself along with another two independent directors – John Cassar White, who needs no introduction; and former banker and financial services specialist Tony Camilleri.
The three directors are now offering a prospective 150 new investors to purchase shares of €50,000 each into the company. In return, the shareholders will be given a quota to use apartments for their own holiday needs, the possibility of earning dividends acquired by the Colliers operation and finally, an expected profit out of the sale of the apartments earmarked for 2017.
“Investors are effectively purchasing shares into the company that owns the property already,” said Dhalia Group CFO Nicky Camilleri. Essentially, this means that although investors will be putting their money into property – they will not have to fork out additional VAT and stamp duty expenses seeing that the property itself is a company asset already.
Camilleri stressed that “investors will be benefiting from property ownership at very reduced rates.”
In fact, the property value represents a rate 15 per cent lower than that valued by an independent firm.

The Bulgarian economy
Bulgaria became a member of the EU in 2007. The World Bank classifies it as an “upper-middle-income economy”. Bulgaria has experienced rapid economic growth in recent years, and although the country continues to rank as the second-poorest member state of the EU, standards of living have clearly risen.
Due to high-profile allegations of corruption, the EU has partly frozen funds of about €450 million until Bulgarian authorities speed up reforms.
Bulgaria plans to join the euro zone by 2013-2014.
Bulgaria’s economy contracted dramatically after 1987 with the dissolution of the Council for Mutual Economic Assistance (COMECON), with which the Bulgarian economy had integrated closely. The standard-of-living fell by about 40 per cent, but it regained pre-1990 levels in June 2004. United Nations sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged in 1994 when the GDP grew and inflation fell. During the government of Zhan Videnov’s cabinet in 1996, the economy collapsed due to lack of international economic support and an unstable banking system. Since 1997, the country has been on the path to recovery, with GDP growing at a 4–5 per cent rate, increasing FDI, macroeconomic stability and EU membership.
The former NMSII government elected in 2001 pledged to maintain the fundamental economic policy-objectives adopted by its predecessor in 1997, specifically: retaining the Currency Board, implementing sound financial policies, accelerating privatisation, and pursuing structural reforms. As of 2006 the GDP structure comprised: agriculture at 8.0 per cent; industry at 26.1 per cent; and services at 65.9 per cent.

Source: businesstoday.com

The number of Russian citizens receiving Bulgarian tourists visas has increased since the beginning of 2009.
After a 30% decline in January 2009 compared to December 2008, and a 20% decline in February, in March, the number of Russians who received Bulgarian tourist visas grew by 12%, by another 62% in April, and the growth in the first 20 days of May is already 68%.
The news was announced Friday by Bulgaria's Deputy Foreign Minister Milen Keremedchiev in Varna, BGNES reported.
Keremedchiev reminded that the Bulgarian government had revoked the visa center fees for Russians for the period between June 1 and September 30, 2009.
The Deputy Foreign Minister also announced statistical data showing substational growth in the number of persons from other former Soviet and Balkan states traveling to Bulgaria in the first quarter of 2009 - Serbia (48% increase), Macedonia (40%), the Ukraine (20%), Belarus (12%), and Moldova (7%).
The only non-EU states that enjoy visa-free travel to Bulgaria are Macedonia, Serbia, and the People's Republic of China.

Source: Sofia News Agency

Industrial properties are the absolute leader on Bulgaria's property market, according to a research of Forton International.
The research shows that serious competition is still lacking in the warehouse and logistic segment, leading to the success of all new projects.
The biggest interest is towards facilities with over 6 000 square meters, which offers the possibility of concluding serious, for the local market, deals. The rent remains at EUR 5-6 per square meter but the profitability of industrial properties continues to grow and reaches 13%.
The office facilities market maintains a relative, more limited activity. New trends among renters of offices are renegotiation of the rent amount, subleasing or relocation to buildings with lower rents.
The biggest supply of office space in the capital Sofia continues to be located on the main thoroughfares and around the beltway near Business Park Sofia.
19 315 square meters of office space have been created in Sofia during the first quarter of 2009.
The biggest deal in the segment, despite the reduced activity, is the renting of 23 000 square meters of office space by the Bulgarian telecom BTK.
The commercial space market also continues to develop, but with lower rates. Big international discounters are entering the market while the other merchants are looking to reorganize their activity and/or renegotiate their contracts' terms.
Forton representatives further say that the deals that are being currently finalized date from 2008 and are the result of older negotiations, adding quick and incidental deals are impossible due to the big supply and cautious landlords.
The crisis has its effects not only on shopping malls but on Sofia's main shopping streets such as the boulevards "Alexander Stamboliiski", "Hristo Botev", and "Maria Luisa". "Vitosha" is currently the only shopping location where all store spaces are rented. The others have many empty store spaces.
According to the Forton research, 5 shopping mall projects are currently in construction stage in the capital, with a total area of 193 000 square meters.
Investment deals have been strongly limited during the first 2009 quarter. Despite the big supply and the revised sellers' expectations, buyers remain limited in numbers. They are seeking distressed assets, and would not make a purchase until those properties with significantly lowered prices appear on the market.
The Forton experts warn Bulgarian sellers that potential foreign investors are comparing local properties with similar ones in Western Europe, which has the advantage of more long-term rents with fixed prices and better justice systems.



Source: Sofia News Agency

The Bulgarian Government’s fast access visa system for non-EU nationals who own property in Bulgaria is reaping results with Russians emerging as the largest group, Deputy Foreign Minister Milen Keremedchiev told The Sofia Echo on May 11.
Keremedchiev said that it was Russians, followed by Serbians, who had best exploited the procedure to provide them with a three-year long multiple entry visa.
The logic behind the visa system, which has been in effect for more than a year, provides for granting an entry visa to non-EU nationals who own property in Bulgaria.
If non-EU nationals own property in Bulgaria they can apply for a multiple entry visa for up to three years, also valid for their spouses and children under 21. Applicants must also have had a Bulgarian visa - minimum one year-long, issued before that. Besides the three-year long multiple entry visa, foreigners would be entitled to stay in Bulgaria for 90 days.
"This has had an effect, especially when it comes to interest shown by Russians," Keremedchiev said. "All they need do is present their title deeds to one of the Bulgarian embassies’ consulate services and apply for the visa."
Since non-EU nationals cannot own land in Bulgaria they could apply for this procedure by presenting a document stating that they owned the company that had bought the property. "Many people do so when it comes to owning a single house but as regards owning an apartment in a residential building, there is no problem for non-EU nationals to have the deed in their name," Keremedchiev said.
The procedure came about when many Russian tour operators and real estate companies said that Bulgaria’s protracted visa system policy was deterring Russians from visiting.
The decision was also based on dwindling interest from British and Irish buyers, perturbed by continuing rising prices and the beginnings of the global economic crisis. Russians, on the other hand, still found prices viable. This, allied to close cultural ties and a shared past, made Bulgaria an attractive destination, hence the request for a streamlined visa system.
According to some complaints, property-owning Russians in Bulgaria were also treated the same as Russian tourists. As a result, Bulgaria’s Foreign Ministry introduced a separate procedure for non-EU nationals that entitled them to access to their property. How this will change when Bulgaria joins the EU Schengen Agreement area is yet to be seen.

Source: The Sofia Echo

The real estate market has already reached the bottom and in the last several weeks there are signs for its recovery, said the chairman of the national association “Real estate” Luchezar Iskrov, cited by BNR.
Yesterday the delegates of the general assembly of the organization re-elected Iskrov as leader of the association.
According to Iskrov the existence of the crisis in Bulgaria is mostly in the rumours and not so much in the real sector.
There is money in Bulgaria. However, the real estate market in the country is much weaker. According to Iskrov it can be stirred up if the banks based on their reports understand that they have the possibility to reduce the interest rates.
The main problem in the real estate branch is the regulation of the profession, said Iskrov. According to him it is not clear whether this will happen through a law, but it is important the companies’ work to be certified in compliance with the EU standards. Iskrov added that on this occasion a technical committee at the Bulgarian standardization institute has already been established.

Source: News.bg

The Bulgarian capital Sofia is going to open officially on Friday part of the extension of the first Sofia Metro line.
The line connecting the Mladost 1 residential quarter and the main building of the Sofia University "St. Kliment of Ohrid" in dowtown Sofia is 6 km long.
It has five subway stations. The distance will be covered in 10 minutes. The line will initially be served by four trains traveling at seven-minute intervals.
A day before the official launch of the new metro line, the construction works around the future subway stations are still in progress.
The constructing of the extension to be opened Friday started in 2006. Part of the line between Interpred and the Darvenitza Quarter does not run underground.
The Metropolitan company, which is in charge of constructing and running the Sofia subway has promised that the final part of the first metro line, which is located in the downtown between the Serdica Metro Station and the Sofia University Metro Station, would be completed by the end of September 2009.
Until then, the two parts of the first metro line - the currently existing part from the Obelya Quarter to Serdica, and the part to be opened Friday - from the Mladost Quarter to Sofia University - will be functioning independently of one another.
With the completion of the connection between Serdica and Sofia University, the first line of the Sofia Metro will be completed, thus connecting directly Sofia's two largest residential quarters - Lyulin and Mladost.
Two more metro lines are planned to be built in Sofia by 2014.

Source: novinite.com

Lease options will be one of the new schemes to be offered by investors during the BalPEX real estate exhibition, which will take place in Sofia’s Inter Expo Center between April 24 and 26.
Investors will showcase more than 150 projects, both completed and under construction, said Veneta Krasteva, managing partner at the event.
One reason why the lease option is more appealing than a mortgage is the smaller down payment of usually three rents versus 20-30% co-financing required by banks, said Rosen Plevneliev, manager of property developer Lindner Immobilien Management.
Moreover, the scheme enables homebuyers to avoid value-added tax (VAT) payments.
The buyer also has two or three years to assess the property and decide whether to buy it or extend the rental agreement, Plevnaliev explained.
Another option is the family account available in Spain where a fresh bank deposit is fed for four years and then the government guarantees tax breaks for the property purchase, explained Mauricio Mesa Gomez, Hercesa country manager for Bulgaria and Romania.
The only incentive currently offered in Bulgaria is waiving the interest payments on homes of up to BGN 100,000 purchased by spouses aged up to 35 years.
Hercesa offers a property purchase scheme where the buyer pays just 25% of the price until obtaining right of use, with the other installments distributed at five steps over a two-year period.
Israel-based AFI Europe offers a two-year grace period for buyers to live in the new home, with 20-30% of the price payable in advance and the remainder in 24 months.
The credit market is expected to start to thaw in a year and a half and now is the time for homebuyers to sign up to the scheme, the company’s country manager for Bulgaria, Shimon Ben Hamo, said.
The prices of quality homes will not go down as they are tied to quality guarantees by the developers, predicted Plamen Miryanov, head of local real estate developer Arteks Engineering.

Source: dnevnik.bg