News and Info for investment

Jain and Chris · #1 14-09-2007, 12:38 PM

As we all know, apart from the normal "location, location, location" one of the other things which can affect desicions for investment and the investment potential are important things happening around the area.

This thread is being started to give news on important things which are happening in areas of Bulgaria to help with 'where to buy'.

To start the ball rolling, here is today's news:
Pleven
The central Bulgarian town of Pleven will soon a sport a new western european style shopping centre after the reconstruction of the former town bank building is finished.

"Central Mall Pleven" will cost almost EUR 9,2 M and will be built by Niya Ltd, a construction and investment company.

The mall will have a total of 11,000 sq.m built-up area, 7,000 of which will be used for shops.

The mall will also have a two-level cinema, bank, restaurants, fast food outlets, cafeterias and a large children's playground.

The mall is scheduled to open for visitors in September 2008.

Niya Ltd is a Pleven company dealing with construction works and investment projects.

More news as it comes in...

diga · #2 17-09-2007, 12:39 PM

Does anyone know if or when the new gondola in Bansko is to be built? I know the municipal have earmarked the land running alongside the ski road on the right(looking up) of the old gondola before the Glazne river. It hadn't started when I was there in April supposed to be completed by 2008. Chances are slim!

Jain and Chris · #3 17-09-2007, 01:54 PM

A very interesting observation about the Black Sea coast and one which I personally would agree with - Varna should aim for upmarket tourists and investors.

The volatility of the local tourism industry was highlighted in technicolour recently when two of the big shot international tour operators announced their plans for next year.
Pan European giants TUI and its newly acquired stable mate First Choice (previously the UK’s 1st & 4th largest operator) announced that from next year it will focus solely on the Southern Black Sea region. Whilst this only applies to its UK operations it highlights the vulnerability of hotels, restaurants and general tourism infrastructure to the whims of marketing executives in other countries.
There is no panic that tourism may collapse in the Northern Black sea area, for the region is not dependent on one tour operator alone nor for visitors from one country. What should be looked at is why Tui/First Choice made this decision and could there be a replication by other Tour Operators in future years?
Entrepreneurs invest time and not insignificant amounts of money in tourist related projects on the assumption that there is a market for their investments and if this market is changing they would perhaps best be advised to find out why it is changing and what it is changing to.
It might well be that the Southern Black Sea area is now considered more ‘budget’ orientated and if one Tour Operator takes this stance will others follow?
Is this a threat or an opportunity?
Actually if the aforementioned scenario were to be correct then the Northern Black Sea area might wish to position itself as a more up-market tourism location and turn away from being a ‘budget’ destination.
The key to doing this is ensuring that tourist facilities such as hotels, restaurants and entertainments also reflect a more upmarket image with golf courses, marinas and spa facilities.
It‘s up to the investors to stay ahead of the game!

Cheers, Jain

Jain and Chris · #4 17-09-2007, 01:59 PM

Quote:

Originally Posted by diga

Does anyone know if or when the new gondola in Bansko is to be built? I know the municipal have earmarked the land running alongside the ski road on the right(looking up) of the old gondola before the Glazne river. It hadn't started when I was there in April supposed to be completed by 2008. Chances are slim!

Hi Diga

This is a good post and one which is relevant to investment in Bansko area. I have asked our office manager to phone the Mayor of Bansko this afternoon to check out what is going on.... whether he will get a reply or not is anyone's guess!?!? I have also put out some feelers with others in Bansko. Hope to get a reply to you soon as we can.

All the best,

Jain and Chris · #5 19-09-2007, 01:03 PM

Hi Diga

We got a phone call from the Mayor today.

He says that 22,000 sq.m is prepared for the first station of the gondola. Everything is still at project stage as they are awaiting approval from the Ministry of the Environment and Water. He anticipates approval from them in the second half of 2008.

Now, this is from the current Mayor, but keep in mind that there are local elections in Bulgaria at the end of October, so the Mayor and other things may change.

Hope this is of assistance.

All the best

propertastic · #6 19-09-2007, 01:31 PM

I thought that the following was a very interesting article on the changing face of the market in Bulgaria:

Less Brit Buyers: More Russians

In summary is says that British/Irish buyers, who used to comprise 80% of foreign buyers now only make up 20%, with 80% now coming from Russia and other former Soviet Bloc countries.

What I found particularly interesting was learning at the differences in the type of properties that the 'first wave' and 'second wave' of buyers are taking.

The Brits and Irish always went for the cheapest they can possibly buy. The Russians conversely are looking for the most luxurious properties on the market.

This is good news for anyone who bought top of the range property off-plan as they should be able to sell on the secondary market quite easily, as I have heard that Russians prefer buying finished property than off-plan (in cash - no questions asked where it came from, please!).

For those who bought something 'cheap and cheerful', prospects for easy resale of completed property probably aren't looking quite as rosy.

Jain and Chris · #7 19-09-2007, 01:51 PM

Hi propertastic

I'm not sure this article is quite true (you don't quote source, so I don't know where you got it from - perhaps it is an agency, which would explain what they are saying).

Latest figures in Bulgaria show statistically that some 70% of all foreign buyers are from the UK/Ireland.

Yes though, there is definitely a change in the face of overseas buyers but differently. We just recently (in the last four weeks) did a survey amongst thousands of both readers and agents/banks/financial companies/removal companies... and found that very interestingly UK and Irish buyers of Bulgarian property are getting significantly younger and are wanting much higher quality properties including rural older properties (conversely to what you are suggesting).

I believe our data to be the most up to date, accurate and impartial available as most figures coming from Bulgaria either come from the NSI (usually two years out of date) or from an agent (own axe to grind or own properties to sell in a given area / price).

I think in the long term those who have bought property in Bulgaria, be it old property for renovation or renovated, be it apartments in ski or coast.... they will all be resold but only those in the very best location will achieve best prices.

All the best

propertastic · #8 20-09-2007, 01:04 AM

Quote:

Originally Posted by Jain and Chris

Hi propertastic

I'm not sure this article is quite true (you don't quote source, so I don't know where you got it from - perhaps it is an agency, which would explain what they are saying).

The article was published in:

The Sofia Echo
Dnevnik Daily
Focus News

There's definitely a lot of spurious facts and figures out there. I don't see what this agency would have to gain from overstating the impact of Eastern European buyers on the marketplace though.

Jain and Chris · #9 20-09-2007, 02:22 PM

Hi propertastic

I checked out these articles and found that the source was an estate agency. Perhaps they do not have a particular point of view, but I believe their main market is highly priced property!? so they are interested in obtaining buyers with a lot of money and in particular Russians.

I have seen no downturn from our readership (97% British and Irish) nor any downturn amongst agents who are selling to Brits.

Maybe an anomoly in reporting???

propertastic · #10 20-09-2007, 04:50 PM

Quote:

Originally Posted by Jain and Chris

Hi propertastic

I checked out these articles and found that the source was an estate agency. Perhaps they do not have a particular point of view, but I believe their main market is highly priced property!? so they are interested in obtaining buyers with a lot of money and in particular Russians.

I have seen no downturn from our readership (97% British and Irish) nor any downturn amongst agents who are selling to Brits.

Maybe an anomoly in reporting???

I'm a great believer in the expression:

"lies, damned lies, and regurgitated press releases coming from journalists who are too lazy to go and check the facts from an alternative source"!