February « 2006 « Eastern Europe Property

Archive for February, 2006

Bulgaria Property Investments

Tuesday, February 28th, 2006

Forecasters expect property prices in Bulgaria’s Black Sea and Mountain Ski resorts to increase 20 per cent -30 per cent annually until 2007 – the year Bulgaria is scheduled to join the EU.

Two developments, The Pirin Golf & Country Club and The Lighthouse Golf Resort and Spa, are the latest resorts available through experiencebg.co.uk and are the only resorts to have properties located on golf courses.

Located on the Black Sea Coast and Mountain Ski Regions of Bulgaria, both resorts boast prestigious golf courses designed by Ryder Cup Captain, Ian Woosnam and offer a world-class environment for sports and relaxation.

The Lighthouse Golf Resort includes a range of properties, from studios to detached villas, with vistas onto the golf course as well as mountain landscapes.

For sports enthusiasts, the Lighthouse Golf & Resort development includes access to five star facilities including the Ian Woosnam Signature Golf Course with special rates for residents, a world-class sports complex & equestrian centre, and indoor and outdoor heated swimming pools.

The resort is 35 minutes’ drive from Varna International airport and prices start from EUR47,013 / £32,144.

The Pirin Golf & Country Club lies in the southwest of Bulgaria at the foothills of the Pirin mountain range, 160km from the capital Sofia.

The Pirin Golf & Country Club is just five minutes /3km from the gondola in the ski resort of Bansko, and 2km from the edge of the town.

Properties available off-plan range from detached villas and semi-detached houses to apartments of all sizes set in landscaped gardens with communal areas and open BBQ area.

In addition, the Pirin Golf & Country Club offers access to five star facilities including a hotel spa and wellness centre including mineral water pool, massage, sauna, hydro massage tubes and alternative relaxation therapies, and downtown area providing restaurants, cafes and selected retail outlets.

Investors have access to a full rental management and maintenance programme, 24-hour all year round security service and a shuttle bus service to the Gondola lift station.

Prices start from EUR42,413 / £29,250

Visit www.experiencebg.co.uk for more info.

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NEW LOW-COST AIRLINE TO LAND IN SOFIA

Monday, February 27th, 2006

Italian no-frills airline Myair has announced a new destination – Sofia.

Flights outgoing from Bologna and Milan’s Orio al Serio airport to Bulgaria’s capital will start April 13, the company’s web site announces.

A round-trip ticket from Bologna will cost about EUR 107, airport taxes included, while the price for flying from Milan is slightly more expensive and would round up to about EUR 126.

To get the best possible price, however, tourists should book no later than 15 days before their planned flight. Passengers would fly on an Airbus A320 and, as in most low-cost airlines, would not be treated to free on-board food and drinks.

Three other no-frills airlines have already added Bulgaria to their list of destinations – Wizzair, Sky Europe, and Air Shuttle.

Posted in Eastern Europe Flights | No Comments »

SOFIA TO SEE HIGHER OCCUPANCY LEVELS OF OFFICE PREMISES IN 2006

Friday, February 24th, 2006

Supply of office premises and occupancy levels in Sofia are expected to mark an increase in 2006 since many investors are about to launch large-scale projects, to be rented by foreign clients, forecast experts from Forton International.

Data of the company shows 83% occupancy for Class A offices in Sofia and 90% for Class B offices.

“The overall Class B vacancy rates are lower due to the large number of small and medium-sized enterprises on the market. As compared to the market in previous years, occupancy levels and the number of appropriate land lots offered are higher,” Valeri Vulchev, Managing Partner of Forton International, told Sofia News Agency.

Bulgaria has emerged as an important investment market for investment funds since average yields nationwide vary between 9-11%, which are relatively high as compared to other Central and Eastern European countries.

“Our forecasts are that the levels will remain unchanged or decrease slightly until the end of the year,” Vulchev said in an exclusive interview for Sofia News Agency.

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Poland – fantastic potential

Monday, February 20th, 2006

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BULGARIA LIMITS COASTAL CONSTRUCTIONS

Sunday, February 19th, 2006

The permits for constructions on Bulgaria’s Black Sea coastal areas will be issued only if the needed infrastructure has been built.

The new regulations are stated in the draft bill for the Black Sea coastline, approved by the Cabinet.

The buildings that have already been constructed in areas where construction is banned under the new draft, will not be demolished, Bulgaria’s Regional Development Minister Assen Gagauzov said.

Bulgaria’s coastline is divided into two zones.

The construction plans should be actualized every two years, in view of the newly adopted measures.

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BULGARIAN FARMLAND PRICES JUMP AHEAD OF EU ENTRY

Sunday, February 19th, 2006

Bulgarian farmland has seen a hike of 26% over the previous year, when deals on half a million decares were realized.

According to the annual report of the System on Farm Market Information, the average price hit BGN 194 (approximately EUR 100) per decare. Some 94% of transactions sought to further develop the agriculture in the respective region, Deputy Agriculture Minister Svetla Buchvarova said.

Most attractive appeared to be farmlands in the north-east area of Dobritch.

According to the conclusions of the report, the upcoming EU membership of the country, scheduled 1 January 2007, pumps expectations on increased farm productivity and stable profits.

Meanwhile, deals in which the purpose of the farmland would be changed afterwards were agreed on the average of BGN 28,000 (approximately EUR 14,000) per decare.

A report of the Centre for Economic Development, released in the end of 2005, pointed that the sustainable development of farming in Bulgaria improves the demand of agricultural land.

The high market supply allows for selecting land parcels according to certain quality and size criteria (over 10 decares), the analysts said. The future EU accession and the opportunity to benefit from sizable amounts of subsidies will make the practice of tenant farming increasingly popular.

Consolidated land allows for leasing at higher prices and achieving higher yield, the CED report stressed, which, in turn increases the price of Bulgarian farm land.

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Flights To Romania

Friday, February 17th, 2006

Speaking at a press conference at the Four Seasons Hotel, Basescu said he had discussions with the Emir H H Sheikh Hamad bin Khalifa Al Thani, on various proposals to strengthen economic and political relations between the two countries. He added that the discussions were fruitful.

He said following an agreement signed with Qatar Airways, the airline would start thrice weekly flights to Romanian capital Bucharest, likely in three months.

Some Romanian pilots are already working with the airline, he added.

The President invited Qatari businessmen to invest in Romania, especially in the tourism and agricultural sector.

Posted in Eastern Europe Flights | No Comments »

Moscow Risks Are High But City Still Rates ‘Buy’

Tuesday, February 14th, 2006

A report on investors’ sentiments toward real estate markets across Europe has found strong “buy” recommendations for all property types in Moscow.

But although the Russian capital ranked second for capital growth and development prospects, it came in 26th — or second-last — in the risk-adjusted total return ratings, according to “Emerging Trends in Real Estate, Europe 2006,” published at the end of January by the Urban Land Institute and PricewaterhouseCoopers. The report reflects the views of more than 300 investors, developers and property companies who were either personally interviewed or completed surveys.

Even though Moscow finished toward the bottom of the pack overall, respondents positively evaluated all the city’s property types, especially industrial. Moscow suffered in the rankings largely because of its poor risk ratings, with respondents rating it the highest-risk city of all 27 in the survey.

The industrial “buy” recommendation jumped from 45 percent of respondents in 2005 to 74 percent in 2006. The warehouse sector is underdeveloped with “incredible demand,” one respondent said. Retail and warehouse vacancy rates have been declining since 2002.

The study found demand is increasing for a high-quality Class A office space. Class A office vacancy rates have steadily declined over the last two years.

One of the most notable changes from last year was the growing number of investors now prepared to take a development risk. In some Central European cities, risk-taking is the only way to obtain a high-quality product, the report said, adding that “speculative development is making a comeback.”

Paris received the highest ranking overall, with top marks for its size and liquidity. London was ranked second, with investors in all property sectors wishing to buy or hold in 2006. Helsinki jumped from sixth place last year to third place this year, followed by Madrid in fourth place and Barcelona in fifth, up from eighth last year.

The search for property investments and development is now spreading to many second-tier property markets, with respondents frequently mentioning cities in Cyprus, Croatia, Ukraine, the Baltics, Slovenia and Romania.

According to one interviewee active in Russia and other CIS countries, the need remains “for the market to become more transparent and open; people should feel more comfortable that there are fair, open, clear rules.”

Posted in General, Russia | No Comments »

Property Investing Warsaw Poland

Tuesday, February 14th, 2006

Poland, as the largest of the 10 new Countries that joined the EU in 2004, stands out as offering significant growth opportunities for overseas property investors. A recent Channel 4 programme cited Poland as being one of the best places to make money from property investment in all of Europe!

EU membership removed the obstacles that previously prevented foreigners from purchasing property there. In addition, EU funding will generate significant impetus to the development of the economy, as Poland seeks to establish itself as one of the major players in the expanded EU.

Poland has focused on economic liberalisation and with membership of the EU, the key economic challenge now is to align the economy to the strict economic criteria for entry into the European Single Currency zone which may be feasible from around 2010. In the meantime, property prices are likely to be influenced by improving economic circumstances, the prospect of joining the Euro zone and increasing demand for quality housing in the major cities by the Poles and expatriates alike

Many cities such as Warsaw and Krakow have ambitious development plans to cope with the increased demand, particularly among the young population, for affordable but quality new build developments. With Warsaw’s population forecast to double by 2010, demand for such property is increasing and property prices in Warsaw have experienced significant growth over the past two years.

Many International Companies have been attracted to Warsaw by the educated workforce and lower overheads associated with running offices or Companies there. These Companies and the growing population are fuelling the need for quality residential accommodation. Demand for premium residential apartments is likely to remain high for the foreseeable future, providing significant opportunities for the investor interested in the buy-to-let market.

Some forecasts suggest that property prices may double in some areas of Warsaw over the next five years, and this coupled with the prospect of excellent rental returns make for an opportunity not to be missed for the overseas property investor.

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