Archive for August, 2007

Real estate prices in Slovakia continue to rise

Friday, August 24th, 2007

The average price per square metre of housing real estate in Slovakia increased by Sk2,661 in the second quarter of the year to Sk36,382, thereby posting a y/y rise of 21.3 percent in the monitored period, the National Bank of Slovakia (NBS) stated.

The NBS monitors real estate prices together with the National Association of Real Estate Agencies (NARKS). The published data showed that by Q2 2007, the price per square metre had skyrocketed 104 percent since 2002.

The development of apartment and house prices in Slovakia has a clear growth trend. While in 2002 the average price per square metre of housing real estate was Sk17,832 in 2005, it grew to Sk26,088 and reached the aforementioned Sk36,382 per square meter in Q2 2007. From a regional viewpoint the highest average price per square metre of housing real estate is in the Bratislava Region – Sk47,808, up 6 percent q/q. The Trnava Region follows with Sk23,927, up 7 percent, and the Košice Region with Sk22,526 and 13.2 percent growth. SITA

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Industrial Property Yields in Bulgaria Projected Under 10%

Saturday, August 18th, 2007

Industrial property yields in Bulgaria stood at 10% at the end of July and are expected to fall below this mark with the further development of the sector, a market overview shows.

“Only a few investment transactions have been recorded on the market to date involving relatively small distribution facilities. The yields for these deals are estimated at 10%,”, says the market overview of leading real estate company Colliers International.

Experts point out that yield levels will be compressed as a result of more investment grade transactions, which are expected to take place with the further development of the sector.

The total inventory of contemporary owner occupied and speculative industrial space
in Sofia and the region around the city is estimated at 1,200,000 m2.

Rental rents for industrial space in Sofia remains stable and continues to range between EUR 3.5 – 5.5/m2/month for prime and secondary rents.

In Varna, the third-largest city in Bulgaria, the prime rental rates have decreased slightly because of Logistics Park Varna, which forms most of the prime supply and offers warehouse space at EUR 5/m2.

More than a third of the total inventory in Sofia is located in areas close to the international airport. Kazichene and Bozhurishte, located respectively just outside the eastern and western parts of the city, are the fastest developing new industrial zones.

The forecast is for new industrial developments to concentrate in the eastern part of the city (along the Ring Road between Trakia and Hemus Highways all the way to the town of Elin Pelin) and the western part of the city (along European Transport Corridor 10).

Posted in Bulgaria, Commercial Real Estate | No Comments »

Foreigners Buy EUR 817 M of Bulgarian Real Estate in H1

Saturday, August 18th, 2007

Foreign individuals and companies with foreign shareholders bought real estate worth EUR 817 M in the first six months of the year, Bulgarian National Bank (BNB) data showed on Tuesday.

The figure is a 79% increase over the same period of last year, when foreign buyers paid EUR 457 M for real estate in the country.

Real estate buys accounted for nearly 40% of all foreign direct investment in January-June, helping offset flagging inflows, according to the BNB figures.

Bulgaria has attracted foreigners for years with its warm climate, seaside and winter resorts and relatively low-priced properties, but interest grew into a boom last year.

Foreigners spent a total EUR 1,13 B on Bulgarian real estate in 2006 and will almost certainly spend even more this year, although overconstruction is turning some of them off.

Brits remain the driving force of the boom and paid, as a whole, more than anyone else to buy houses in Bulgaria, focusing on seaside properties and accounting for 15,9% of the total money spent.

Austria and Luxembourg follow in the rankings, with 13,2% and 11,8%, respectively, while Spaniards spent 7,5% of the total sum.

Bulgaria joined the EU in January, but that had no effect on the market, as foreigners could buy real estate long before the accession, with the exception of the land itself.

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EasyJet announces new route to Sofia Bulgaria

Wednesday, August 8th, 2007

easyJet announces expansion in Bulgaria and seven NEW routes
easyJet, Europe’s leading low-fares airline, today announced the addition of seven new routes this Autumn, including new connections to currently served destinations and the addition of Bulgaria to its network.

The introduction of the three times weekly service between London Gatwick and Sofia, which commences on 6 November, reflects the airline’s continued commitment to growth in Central Eastern Europe and follows the recent announcement that the airline will also enter the Romanian market as well as the introduction of routes to Gdansk in Poland.

Posted in Bulgaria, Eastern Europe Flights, Poland, Romania | No Comments »

HOLIDAY PROPERTY PRICES AT BULGARIAN BLACK SEA COAST DECREASE

Wednesday, August 8th, 2007

The trend of the past four years of a steady increase in prices of holiday property at the Black Sea coast has started to drop off.

Prices in the past three to four years initially increased by to 20 to 30 per cent and even 50 per cent in a year, but this had not been the case in 2007, investor.bg reported.

The average price of bachelor flats and two-bedroom summer apartments in Sunny Beach dropped by four per cent between July 2006 and July 2007, according to a survey commissioned by investor.bg.

A trend of falling holiday property prices has been evident in other southern Black Sea resorts in Bulgaria, including Ahtopol where prices of bachelor flats went down by five per cent and that of three-bedroom apartments by eight per cent. Other resorts where prices decreased were Primorsko and St Vlas.

Investors have focused their interest on smaller inland villages and towns. Prices of some properties in Lozenets, Chernomorets and Golden Sands have gone up by more than 20 per cent.

Investors in holiday property would benefit from selling rather than renting out, specialists said.

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