PROPERTY NEWS | PROPERTIES IN BULGARIA (a service of easyBG Ltd.)
1700 Years From
The Edict of Toleration
On April 30, 311, Galerius proclaimed the Edict of Toleration at Serdica (today's Sofia - the Capital of Bulgaria) ending the Christian persecutions. Galerius died on May 5, 311. He was succeeded by Constantine I, his longtime rival. Constantine's rule marked a significant turning point for the Roman Empire, for he was the first emperor to convert to Christianity, but even prior to that had strengthened the original 311 edict of tolerance with his own Edict of Milan in 313, which banned all forms of religious persecution in the empire.
March 20, 2018
What is the Future of Real Estate in Sofia?
Usually we understand if there is a bubble in a market it is just before it bursts, and before that we make very clever conclusions. My very clever conclusion is that we still do not have a real estate bubble, or at least it is not so inflated that we can expect it won't burst soon. This is what Georgi Pavlov, executive director of Address Real Estate, told Bloomberg TV Bulgaria.
"My reasons for this opinion are that prices have not yet reached the peak of 2008, and at the same time, the income of the population for these 10 years has risen, so even if there is a bubble, we are at a much earlier stage, or we are much better prepared for it ".
One of the measures used to estimate the growth in a given sector has a real base or it is a bubble, is the current return on assets and their current price, the guest said. "With residential properties, this is the rental price of the property, it has not yet reached its dangerous levels."
"In Bulgaria traditionally the yield on housing estates is about 6% and in the previous bubble it has dropped to 3%, which clearly indicates that the market is overestimated, yet this factor does not indicate the existence of a forming bubble. The increase in incomes has led to a rise in rents that people are willing to pay, which I think is currently between 4 and 5%. "
February 12, 2018
24% of the Apartments in Sofia are Uninhabited
Despite the continuous internal migration to the big cities, the number of uninhabited dwellings is large. The so-called dark windows in Sofia are 24% of the dwellings. In Sofia area, they reach 48%. The percentage is also significant in Varna - 30 per cent, and in Plovdiv - 26 per cent. This is shown by a Eurostat report on the demographic map of the European Union published last week.
Community statistics are close to the findings of a World Bank report commissioned by the Bulgarian regional ministry and published in early November last year. As the Sega newspaper wrote then, nearly 1.2 million homes in Bulgaria are uninhabited. This is approximately 1/3 of the total number of homes in Bulgaria. In the large cities, an average of a quarter of the dwellings are uninhabited, but in rural areas the percentage is far higher - an average of 43%.
The families who are almost under the poverty line or half of all people, 80% of the children under 18 and 595 of those between 16 and 29 live in a home which is considered overcrowded. 82% of the people who are renting their apartment also live with too many people. Over 3/4 of apartments in the country are in buildings which are over 30 years old and are not in good condition. The reasons for this unfortunate turnout are several factors: lack of care of the common spaces, oweners living abroad and not paying taxes and unreasonable expectations that the state has to take care of such problems. The problems are getting increasingly serious despite the popular rehabilitation propgramme for "free" funded with billions of leva by the state.
The trend towards urban migration continues to deepen, Eurostat data show. By 2016, the cities population in Bulgaria has risen to 75% of the total population. In the last 65 years the small villages in our country have been significantly vacated, losing 6 million people at the expense of the cities. By the middle of the last century, the urban population in Bulgaria was 20%. Only in four decades the citizens of the cities were already 67% of the Bulgarians in the country. Today, more than 5 million people live in the city at the expense of 1.8 million people in the villages.
This migration is extremely uneven. Only Sofia and Varna are the cities whose population has steadily grown in recent years. The growth in the capital is 30%, and in the seaside - about 10%. At the other pole are Vratsa and Vidin. In the most depopulated cities the decrease of the population is minus 23% per cent for Vratsa and minus 22% for Vidin.
More than 30% of the population in the cities in Bulgaria and 39% of the population in the villages are at risk of poverty, Eurostat data show. Romania is slightly better than us - the risk of poverty in the city is 24%, while for another neighbor - Greece, this indicator is over 33%. In 2016, one in four city residents (around 24%) in Europe was at risk of poverty. People in countries such as Austria, Belgium and Denmark are threatened with material deprivation in the city, while in poorer countries like ours and Romania the population is at risk of poverty in the countryside. Material deprivation is measured by the impossibility of paying a rent, a mortgage, the impossibility of vacation or the possession of items such as a TV set, a telephone, a washing machine, and a car, etc.
January 31, 2018
The Properties by the Sea: The Russians Leave, the Westerners Come
French, Germans, Belgians and other residents of Western Europe are asking to buy property on the Bulgarian Black Sea coast. At the same time, real estate developers registered a drop in the number of Russians investing in holiday properties on the Black Sea coast.
The reason for the interest of Westerners is the declared intention of the government that our country should enter the Eurozone waiting room, say brokers. They explain the outflow of Russians, especially with the ongoing economic sanctions against Russia.
Growth of inquiries from French, Belgian and Swiss for purchase of property for holiday in the region of Bourgas and Sunny Beach is reported. This was explained by Deputy Head of the Association of Real Estate Brokers Iliyana Vassileva to Trud.
She also said that Turkish investors have appeared in Sunny Beach who are looking for luxury properties. Buyers are also Bulgarians who have saved money from work abroad and want to invest in a holiday home.
Interest in buying home in Bulgaria continues to be demonstrated by German pensioners. Recently they are heading to Varna.
"They like it here, in Bulgaria, the standard is good for them, but because of the language it is more difficult to socialize," said Deputy Chairman of the National Real Estate Association Deputy Dobromir Ganev.
He explained that because of economic sanctions against Russia and the aggravated situation there, its citizens are no longer the most active buyers of such properties in Bulgaria. And their return to this market is not expected soon.
Because of the outflow of Russians there is a drop in transactions in 2017 compared to the previous year. Sales in Balchik are 11% lower, in Byala - 18%, in Kavarna - by 14%, in Nessebar - by 2% and only in Pomorie marked a growth of 4%.
The Southern Black Sea coast is more attractive due to its proximity to Bourgas airport. Only in Nessebar were bought as many properties as in Balchik, Byala and Kavarna taken together. The prices are in a wide range and vary between 400-500 to 2000 euros per square meter, added Ganev.
Realtors predict stagnation in the property market in Sofia after the growth last year. There will be an increase, but only on luxury homes.
The prices in the capital are in a wide range - from 700 - 800 euro per square meter per panel in the districts to 2000 euro per sq. M for a luxury property in a prestigious neighborhood. Buyers will again be young people who have arrived from other parts of the country to work in Sofia and take a home loan, experts explain.
In the city of Varna, there is no demand for urban housing. The lack of quality properties increases green prices to 600 euros per square meter, and in the most preferred neighborhoods like Chaika - up to 1000 euros per square meter. In Bourgas the prices are about 300-400 euros per square meter for city dwellings, but there is no new construction. This increased the prices of new apartments by 10%. For Plovdiv, real estate developers expect up to five times increase in urban construction due to the strong demand for new properties.
There will be a stagnation in prices in the region of Veliko Tarnovo and Gabrovo. Even after the crisis there was no interest of housing and the average cost per square was 200-300 euros. This year, an active demand for industrial properties in the region is expected due to the construction of the tunnel under Shipka - mainly for premises for restaurants and warehouses.
January 23, 2018
VMware has Negotiated the Largest Office Deal in Bulgaria
US high-tech VMware will rent more than 20,000 square meters in two of the buildings built in the Garitage Park complex. The announced rental area is the biggest office deal on the Bulgarian market.
Buildings will be put into use in mid-2019. VMware will provide more than 1,600 jobs, meeting rooms, leisure facilities, and employee entertainment.
"We aim to turn the office here into an even more attractive location for Bulgarian and foreign specialists to work and live in Sofia," said Diana Stefanova, Managing Director of VMware Development Centers for Bulgaria and EMEA.
Colliers International Bulgaria was the consultant for the deal.
Garitage Park is a residential and business complex located on 165,000 m2. The project will be realized in stages and fully finished will include:
- 95,000 m2 of offices
- 60,000 m2 of dwellings
- 90,000 m2 of parkland with lake, children's and sports grounds
- Primary school for 500 children
- 4 500 parking spaces
- Sports center with pool
- Supermarket, restaurants, cafes and more.
Garitage Park is the first multifunctional complex in Central and Eastern Europe to receive a BREEAM Community intermediate certificate for social, economic and environmental sustainability. The complex is located in an area with well-developed infrastructure and direct access from the Ring Road, which provides fast and convenient transportation to the center, airport and various parts of the capital.
January 19, 2018
Bulgaria is Seventh in the EU in Increase of House Prices in 2017
9 percent the homes in Bulgaria have a higher price in the third quarter of 2017 compared to a year earlier. This places Bulgaria on the seventh position in the European Union on the rise in prices of houses, Eurostat data show.
The largest annual house price increases were reported in the Czech Republic (12.3%), Ireland (12%), Portugal (10.4%), Hungary (10.2%), the Netherlands (10.2%) and Latvia (9.5%). Only in Italy home prices have fallen by 0.9%, according to Eurostat data. On average, for EU, house prices have risen by 4.1 per cent in the third quarter of 2017 compared to a year earlier.
Meanwhile, the BNB has warned banks to pay attention to housing loans because the rise in property prices hides dangers. In its report on the state of the banking system for the third quarter of 2017, the central bank advised credit institutions to be more conservative in funding for economic sectors and high indebtedness. In addition, the BNB warns that rising real estate prices will not be forever, and banks should not lower their requirements for a healthy ratio between the amount of new loans and the value of mortgaged properties.
At the end of last year, in its report on excessive macroeconomic imbalances, the European Commission also warned of a risk in the property market due to the high indebtedness of businesses and households.
© 2018, D. Georgieva
Did you know?
January 19, 2018
Bulgaria is Seventh in the EU in Increase of House Prices in 2017
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