First topic message reminder :

[size=75:1bz3xn8d]novinite 22 March 2010

Bulgaria Govt Orders Demolition of Illegal Black Sea Buildings

The demolition of illegally constructed buildings on the Black Sea coast is set to begin, the Chamber of Builders in Burgas reported Monday.

The Chamber has received a letter from the Ministry of Regional Development and Public Works to collect bids for the removal of illegal constructions, all of which have been proved in court to be built without permission.

Buildings in the old town of Nessebar, Obzor, Sozopol, Kiten, the village of Emona and a swimming pool in Sunny Beach will all be removed according to reports.

Environment Minister Nona Karadzhova also reported Monday that a large number of building projects that have been approved on the Black Sea coast actually do not involve the intention to build – instead after approval the land is just sold at a larger price.

The European Commission is set to launch legal proceeding regarding some of these projects in Bulgaria, Karadzhova reported.

[size=85:20u4gyg7]Sofia echo

The Bulgaria 2010 Review: Properties

Bulgaria Mushrooming Malls Top EU List

Bulgaria ranked first in the European Union in the number of new shopping malls in the first half of the 2010, a report by Cushman and Wakefield consultancy showed.

While in most EU member-states the number of malls is on the slide due to the global economic crisis, their construction has accelerated in Bulgaria, marking a nearly 90% increase over one year.

A similar trend is also witnessed in other Balkan states - Bosnia&
Herzegovina, Romania, Slovenia, Serbia and Croatia - but the growth rate there is 5-10%.

The stock of contemporary shopping mall space in Bulgaria doubled in the first six months of 2010 with the opening of five new shopping malls, reaching 452,000 sqm in total, according to a recent realtor report.

Another five shopping mall projects are expected to open until the end of 2010, which will add 126,000 sqm of contemporary stock to the market, according to Colliers Internationals retail market overview for the first half of 2010 in Bulgaria.

The opening of new shopping malls affected not only the urban landscape, but the performance of the main High Streets as well.

Brands are concentrating in the malls, where rental rates are lower, pushing overall vacancy to 10% in Sofia, according to Colliers' report.

Largest Bulgarian Shopping Centre 'The Mall' Opens in Sofia

The largest shopping centre in Bulgaria known as 'The Mall' was inaugurated in Sofia late on April 20.

The Mall is located at 115 Tsarigradsko Shose, one of the major Sofia boulevards. Its 66 000 square meters of commercial space make it the largest shopping centre in the country.

The Mall, which features 185 stores of top Bulgarian and global brands, restaurants, a parking lot with 2 800 spaces, the first Carrefour hypermarket in Sofia, and an 'Arena' cinema complex, was opened by Bulgarian Prime Minister Boyko Borisov and Sofia Mayor Yordanka Fandakova.

The opening was attended by representatives of the Restis family from Greece, which is the owner of 'The Mall' through its international real estate private equity group Assos Capital Ltd. High-ranking executives of the Garrefour Group and the Marinopoulos Group were also among the guests.

The new shopping centre was formally opened for clients on Wednesday, April 21, 2010. According to the owners, The Mall is aimed at offering "
a new lifestyle to a wide range of consumers – from teenagers and yuppies to family couples with kids and elderly people."


Sofia's newest mall has created a total of 1 500 new jobs;
400 of these are at store of Carrefour, the largest retailer in Europe and the second largest in the world.

The Carrefour hypermarket at The Mall is the chain's first in the Bulgarian capital Sofia, and the largest Carrefour store in Bulgaria. It is located on an area of 9 000 square meters, and offers over 50 000 products.

The new shopping and entertainment centre also has an Arena Cinema Complex with 10 halls and a total of 1 800 seats, a bowling centre, and a gym,

The Mall is located on six levels, three of which are underground. It has been designed by architect Ilian Iliev from 'Planning Studio', the construction was carried out by the GEK TERNA Group, and the property is managed by Colliers International Bulgaria.

Bulgaria Sees Another Shopping Mall Giant 'Serdika Centre'

Bulgarian shopping mall, "
Serdika Centre"
, was formally opened in Sofia in the middle of March.

Serdika Centre is located on the Sitnyakovo Blvd. It has 210 stores with a commercial space of over 51 000 square meters on three levels, and office space of some 30 000 square meters.

Only three of the 210 stores remain unoccupied at the time of the opening, announced ECE Project Management, the company running the complex. Some of the stores, however, will start operating only in April 2010.

Over 60% of the commercial space has been rented by fashion brands. Several brands including Zara and Peek&
Cloppenburg, as well as the Austrian shoe producer Humanic, enter the Bulgarian market for the first time with their stores in the Serdika Mall. New Yorker and Deichmann are opening their first stores in Sofia in the newest shopping mall.

The management of Serdika Centre is going to attract visitors by organizing special events – not unlike the other 114 malls ran by ECE Project Management. The commercial and office centre is going to have 1 600 parking spots and unlike most large shopping malls in Bulgaria, will not feature a movie theater.

The Serdika Centre project was started in 2006 with the Austrian company Sparkassen Immobilien as the main investor. The office part of the mall with an area of 30 000 square meters will be opened in the summer of 2010. Sparkassen Immobilien have three more projects for shopping centres in Bulgaria located in Sofia, Varna, and Plovdiv.

Serdika Centre wa the second large commercial centre to have been opened in Sofia since the beginning of 2010 after the Sofia Outlet Center located on the Tsarigradsko Shose Blvd.

Grand Mall Varna Opening Attracts Thousands in Bulgaria's Black Sea City

Thousands of residents and guests of Bulgaria's Varna attended the opening of the city's newest shopping and entertainment centre – Grand Mall Varna on May 27.

The construction of Grand Mall Varna started in 2007;
over EUR 120 M have been invested in the complex so far, and some 2 000 people have worked on completing the project.

The biggest mall in Varna has a total built-up area of over 150 000 square meters, including 50 000 square meters of commercial space for rent. It features a parking lot with 1 700 spaces. The Arena movie theatre inside it has 8 halls will a total of 1 100 seats. The Carrefour hypermarket, which is the first store in Varna of the global retail chain, has an area of 9 300 square meters.

The global brands that are entering the market of Bulgaria's major Black Sea city for first time thanks to Grand Mall Varna include not just Carrefour but also Zara, Bershka, Stradivarius, Pull and Bear, Humanic, Playlife, Calliope, Douglas, Bata, Deichmann, Intersport.

The partners that took part of the realization of the Grand Mall Varna project include MYS Architects (a firm that participated in the construction of Mall of Sofia), Lagis EOOD, the OTP bank, the MKB Union Bank, the DSK Bank, leading real estate companies Colliers Properties and Colliers Leasing, law firms Firon-Bar-Nir and Eurolex, and Bulgaria's largest PR agency M3 Communications Group, Inc.

The real estate developer and hotel operator Orchid Developments Group Ltd is active in all major sectors of the Bulgarian real estate market. It operates projects in Sofia, Varna, and the Golden Sands resort. With over EUR 150 M invested in Bulgarian real estate properties, Orchid Group is one of the leading companies on the Bulgarian property market.

In addition to the EUR 120 M Grand Mall Varna, the company has two more projects in Varna – the closed-type complex Orchid Hills and a mixed use building in the downtown, Orchid Gardens Varna.

First 'Real' Shopping Mall Opens Doors in Bulgaria's Danube Ruse

The "
first real shopping mall"
in the Bulgarian Danube city of Ruse opened doors in the middle of December with large crowds of shoppers storming it to raid the brand new stores.

The total investment in the construction of "
Mega Mall"
is BGN 64 M;
the total built-up area of the mall is 48 000 square meters.

Of those, the commercial space is 17 800 square meters, and contains 100 stores, many of which are occupied by global brands entering the market of the Danube city of Ruse for the first time. The popular hypermarket chain "
Piccadilly"
, which is one of the major retailers in Sofia, Varna, Plovdiv and Burgas, and already has 30 stores in a total of 11 cities and towns, has also opened a store in the new Mega Mall.

The underground parking of the mall offers 400 parking spots on two levels.

Mega Mall is located close to the bank of the Danube River. It is a joint development of the European Convergence Development Company Limited (ECDC), a company listed on the London Stock Exchange, and the Bulgarian company Megachim AD.

The architectural design of the mall is authored by the UK architectural bureau Chapman Taylor.

4 Emblematic Sofia Cinemas Become Shopping Centres

Four of some of the most popular former movie theatres in Bulgaria's capital Sofia are going to become shopping malls or supermarkets in the short term, according to local media reports.

The properties were owned by the fund TBIL (Trans Balkan Investment Limited – formerly Equest), which recently sold them to other investors.

One of them - the emblematic building of the "
Iztok"
(East) movie theatre, on the Sofia main thoroughfare "
Tsarigradsko Shosse,"
across from the "
Pliska"
hotel, which has been closed for years and had deteriorated badly, is now re-modeled and turned into a supermarket.

The building was purchased for EUR 1.43 M about six months ago by the supermarket chain Billa, owned by German concern REWE Group.

The "
Serdika"
movie theatre building also changed owners last year and now belongs to the company "
Agriway Holding"
of Vasil Zlatev, father of the CEO of "
Lukoil Bulgaria,"
Valentin Zlatev, who planned to turn it to a shopping mall and office centre. The project, however, remains frozen.

Recently, TBIL announced, through the information site of the London Stock Exchange where its shares are traded, that there is a contract for the sale of the "
Evropa Palace"
movie theatre in down town Sofia for EUR 1.5 M. The plan here is again to have a mini-mall with coffee shops and bars.

There is also a preliminary contract for the "
Urvich"
cinema, but the price is unknown.

Raiffeisen Allowed to Buy Bulgaria's Mall Varna

Bulgaria's Competition Protection Commission approved at the end of November the request of Austria's biggest banking group, Raiffeisen Zentralbank Austria AG to buy out the Mall Varna shopping and office centre in the Black Sea city of Varna.

Raiffeisenbank will thus go ahead with the purchase 100% of Miller Mall Varna One EAD, headquartered in Sofia. RZB is the owner of Raiffeisenbank Bulgaria, which owns Raiffeisen Real Estate.

Raiffeisenbank Austria AG is a holding company of the Raiffeisenbank Group, which owns Raiffeisenbank Bulgaria EAD.

Miller Mall Varna One EAD manages the commercial and entertainment centre known as Mall Varna. Raiffeisenbank approached the Competition Protection Commission over the deal at the beginning of October 2010.

The competition watchdog has now ruled that there is "
neither horizontal, nor vertical connection between the activities of the two parties,"
which will therefore generate no changes in the market situation of the participants after the deal is carried out. The Commission believes that the purchase will not affect the efficient market competition in the respective sector.

The sum that Raiffeisenbank will pay to acquire Mall Varna's owner has not been revealed.

Mall Varna was constructed by the Bulgarian Interservice Uzunovi Jsc and opened in the summer of 2008. Shortly after it was acquired by the Scottish Miller Developments, a subsidiary of Miller Group.

The price of EUR 120 M was record-high for the purchase of a commercial centre in Bulgaria at the time. This was also the second largest real estate deal in the country.

Bulgaria's Newest Mall 'Varna Towers' Opens Doors

The Varna Towers shopping mall and office centre in the Bulgarian Black Sea city of Varna opened doors at the end of November.

One of the greatest attractions of the complex is the only rotating restaurant in South-east Europe named Magnito, located on the top of the Eastern Tower.

At the same time, the top of the Western Tower features a helicopter landing ground, which is the first in Bulgaria to be located on the roof of a building.

Varna Towers appears to be one of the largest malls in Varna with a total space of 83 000 square meters, including 60 000 square meters of commercial space and 23 000 square meters of office space.

EUR 50 M have been invested in the project for the construction of the "
Administrative and Commercial Centre Varna Towers"
, with the participation of 2 000 people from over 100 firms.

Each of the two towers of Varna Towers is 70 meters in height, and the complex offers 800 underground and surface parking spaces.

Bulgaria's Property Market in Figures

Bulgaria's Sofia Tops Real Estate Prices Drop in Europe

Sofia is the capital with the biggest drop of real estate prices in Central and Eastern Europe for 2009, according to analysis of the consultant company ERA Europe.

Compared to 2008, last year the real estate prices in Sofia dropped by 22%, putting the Bulgarian capital at the top of the list for the region.

According to the analysis, compared to the whole Europe, Sofia ranks third, left behind only by Dublin and Lisbon, which registered a 26% and 24% drop of real estate prices in 2009.

Bulgaria's capital is followed by Bucharest, with a drop of 15%, and Luxembourg, Amsterdam, Prague, Paris and Athens, which had more moderate decreases of 5% to 10%.

Data showed that Bern was the only capital to register increase of the real estate prices in 2009 – 10%.

The countries that are the least affected by the recession are the Scandinavian countries, Switzerland and Turkey. The reasons are different in every country but there is a category that is valid for all of them and this is the lower consumer confidence and more sellers.

Together with the huge volume of information, available on the Internet, the real estate market is becoming more and more dependent on brokers, while their number continues to decrease, according to the analysis.

On a national level, Bulgaria ranks second in Europe on drop of real estate prices. Ireland holds the first place with its 20% decrease.

The prices went down 5-10% in Luxembourg, the Czech Republic, France, the Netherlands and Portugal.

In Bulgaria, the average price for real estate in 2009 was about 18% less than the previous year.

Bulgaria's Apartment Prices Down by 6% in 2010 Q3

The average apartment price in Bulgaria declined by 6% in July-September 2010, year-on-year, according to data of the National Statistical Institute.

Thus, in the second quarter of 2010, a square meter of apartment space cost BGN 959.79 on average.

Compared with the second quarter of the year, the average apartment price went down by 1.2%.

The highest average price per square meter is in Sofia – BGN 1592.58, Varna – BGN 1592.58, and Burgas – BGN 1164.88. The apartments in Kyustendil are the cheapest – BGN 575.46 per square meter.

Smaller cities around the country such as Gabrovo and Targovishte saw the average apartment prices drop by more than 6% year-on-year.

Putting the house in order

Bulgaria Makes Efforts to Crack Down on Property Frauds

Bulgaria's Notary Chamber has proposed the introduction of a final power of attorney in a bid to reduce property fraud.

"
This is how the elderly and the sick, including alcohol and drug addicts, will be able to entitle only their closest people to manage their property,"
Dimitar Tanev, Chairman of the Notary Chamber said.

Data of the prosecutor's office shows that a total of 90% of the people who fall victims to the so-called real estate mafia are elderly or psychologically unstable.

New rules that envisage that all property transactions in Bulgaria must be carried out via bank transfer were approved at second reading by the parliament at the end of September as part of amendments to the Notary Act.

Whilst the change to buying and selling was first mentioned a year ago as part of a bigger plan to reduce corruption in the property sector, they have not come to fruition.

There is hope that the new rules will help to reduce property fraud and money laundering, as well as ensuring that all fees and taxes owing to the state are paid.

The legislative changes will require that both the vendor and the buyer specify their bank accounts for conducting a property deal. Alternatively, they could use the account of their notary public.

These legislative changes are seen as the first step to an all-out regulation of payment in purchase deals through a special law to be called Deposit Account Act.

There is also hope that the new laws may inspire more confidence from overseas property buyers.

But, there are risks to this new system, as sellers and buyers may want to avoid the new fee charged by the bank for servicing the transactions.

Thus, they may agree a lower price for the official transaction and then do a cash deal privately. This is common in France where the new system planned for Bulgaria is already in use.

Bulgarian Govt Vows to Get Rid of Illegal Construction

The bad weather in Bulgaria suspended at the end of the year the demolition of illegally constructed buildings along the southern part of the Black Sea coast, but the levelling will be renewed after January 10.

The Directorate for National Construction Supervision (DNSK) operations on removing illegal constructions began on November 1 in the fishing village near the mouth of the Ropotamo River. Then, several buildings were demolished in another village near the city of Burgas.

Clashes between protesters and police erupted in the process of removing illegal constructions in the Black Sea town of Nesebar.

In the middle of December DNSK announced it is starting to remove the illegal constructions near the Iskar Reservoir, four years after they were erected.

Doldrums Prompt Glut of Frozen Residential Projects in Sofia

A mix of an economic slow-down, over construction and bankrupt investors have led to a sharp increase in the number of frozen residential projects in the Bulgarian capital Sofia, data shows.

The downturn has dealt a heavy blow to the plans of thousands of investors and clients in Sofia, the biggest number of frozen projects being in the districts of Manastirski Livadi and Vitosha. Experts say that every tenth project in Sofia has been completely frozen, while every third is facing serious delays in construction works and will surely not meet deadlines.

Construction companies put the blame squarely on the shoulders of the banks, which have restricted crediting since last spring.

Experts say this is not the burst of a speculative bubble, but rather the logical development of the market. The foreign buyers, who fuelled the real estate sector in Bulgaria, started to withdraw in 2008 due to the slow-down in markets outside Bulgaria, finding it harder and harder to finance their purchases.

Property in Bulgaria capital Sofia is the third most undervalued of those countries Global Property Guide has compiled data for.

According to the data the average price of Sofia property is EUR 1,759 per square meter, compared to Monaco at EUR 35,658 per sqm, and London, Paris and Moscow at between EUR 10,000 and EUR 14,000 per sqm, but even comparing it to Vilnius in Lithuania at EUR 2,406 per sqm, and Bucharest, Romania at EUR 3,404 per sqm.

Experts have warned however that most of the offers tend to be off plan and there is always the risk of buying a property that only exists on paper -- especially in an emerging market like Bulgaria.

Bulgaria's Property Market in Sectors

Sofia Office Market Sees Signs of Recovery

After a period of relatively low activity, the Bulgarian capital Sofia is seeing signs of recovery in the office market, according to a survey by Colliers International.

The net absorption for the first half of 2010 has marked a 27% increase compared to the previous six months, the most active companies being mainly from the telecom, outsourcing and IT sectors, shows data of Colliers International.

The vacancy level has reached 21% of the total stock and was higher in Class A than Class B buildings - a testament to the price sensitivity of the market.

Office real estate markets around the world took another step towards returning to normal in the past six months. According to the Colliers' Global Office Real Estate Review for the first six months of 2010, most markets show increasing signs that the worst of the global crisis is over.

Leasing activity is up significantly compared to the previous six months. In particular, Asia Pacific, Latin America and Canada all post healthy growth rates and show signs of future expansion.

The outlook for the balance of 2010 and into 2011 is for continued signs of growth, and a general sentiment that "
the worst appears to be over"
.

Right before its accession to the European Union in 2007 Bulgaria emerged as the new shining star for investors in office facilities development. Three and a half years later, the country is going through its first recession in more than a decade and the office market has been hit by a period of relatively low activity.

The market remains focused exclusively in the capital Sofia, which is at a stage when any client might be able to find suitable premises or expect those to appear at a suitable time.

Assessed in comparison with other countries in the region of Eastern and Southeastern Europe, Bulgaria's office market is keeping its edge.

Yields have been rapidly declining in the old hotspots of Central and Eastern Europe for the last few years and investors have been pushed further east to countries, including Bulgaria.

What the country offers them are lower prices, higher returns and relative security.

Bulgaria's capital Sofia made recently its way into the top ten office markets in Europe and the Middle East in terms of construction volume to be built by 2012.

Sofia ranked next to Paris, Brussels and St Petersburg since in each of these cities some 600-700 thousand square meters of office properties are being built.

Approximately 200,000 sq.m. new office space was expected to be completed until the end of the year, shows a research by Forton, a property advisory company.

Sofia Logistics Market Vacancy Rate Up

The logistics market in Sofia region registered new stock increase of 12,684 sq.m., while the vacancy rate went up to 9.24% in the third quarter of 2010, shows a research by Forton, a property advisory company.

Thus, at present modern logistics space supply amounts to 527,434 sq.m., which represents mere 2.46% increase as compared to the second quarter of this year.

Development schemes delivered to the market include industrial projects of T-Logistics Centre and BodyCar, an importer of paints for cars.

T-logistics Centre delivered to the market prime warehouse space totalling 5,184 sq.m. The speculative development is located in Trebich, Sofia.

BodyCar completed its three-storey industrial and office building situated at Rezbarska Str. in Sofia with total built-up area of 7,500 sq.m. The building has underground parking area for approximately 20 auto mobiles.

At present there are industrial/logistics projects totalling 73,730 sq.m. under construction in Sofia region. Among the largest schemes are projects of Simid Sofia, Maria Kom and Elit Imoti.

Rent level for prime logistics space remained unchanged since Q2 2010 at 4 euro/sq.m. (service charge not included). The rates are about 30% down in comparison with the levels in 2006-2007, when they stood at 6 euro/sq.m.

Service charge (operational costs) is within the range of 0,5-1,0 euro/sq.m. Typical lease agreements are concluded for a period of 3 to 5 years with up to 3 months rent free.

There are two distinctive trends at present on the industrial market - relocation and rent renegotiation, the analysis shows.

FMCG, pharmaceutical companies, international brands operators as well as companies from the processing industry and technology sector remain among the key segment drivers.

According to Forton's research toward the end of 2010 and the beginning of the next year these companies will seek quality industrial space for rent. Thus, industrial parks currently at design phase may come into existence.

Bulgarian Commercial Streets Bottom World Survey on Rent Prices

The Bulgarian cities of Plovdiv and Burgas and their streets Alexander Batenberg and Alexandrovska, respectively, have registered the biggest drops in store rents, a survey showed at the end of September.

Both streets had a drop of 50% in commercial rent prices, showed the annual survey by the commercial real estate broker and consultant, Cushman &
Wakefield.

In comparison, Ermou in Athens had a 15% decline, while Dublin's Grafton Street had an almost 26% drop of rent prices for stores.

At the same time, the prices on the best streets in 2/3 of the respondent 59 countries have shown a stabilization or even increase of commercial rent prices since June 2009, which registered the biggest drop of rent prices in a period of 25 years.

According to the survey, Asia was faster than the United States and Europe to increase its rent prices. Tokyo's Ginza and Seoul's Myeongdong have moved forward in the ranking, reaching the third and the eighth place respectively.

In 2009, the two streets were positioned at the fifth and eleventh place respectively, but since then, the prices in Tokyo increased by 4,5% and in Seoul – by 17,4%.

New York's Fifth Avenue topped the ranking after the prices for store rent went up by 8,8%, which equals an average of EUR 16,257 per sq.m. commercial area.

Second place is occupied by Hong Kong's Causeway Bay with registered increase of 9,6%, which means that renting a store on that street would cost about EUR 14, 620 per sq.m.

London's New Bond Street saw a 19% jump in rents, replacing Paris' Avenue des Champs Elysees as the most expensive street in Europe.

Milan's Via Montenapoleone, Zurich's Bahnhofstrasse and Munich's Kaufingerstrasse were the other three European streets that made it to top 10. They rank 6th, 7th and 10th respectively.

As a whole, for the past 12 months, the prices for commercial rent in Europe dropped by an average of 4,5%.

Foreigners and Bulgaria's real estate market

Brits Lose Interest in Bulgarian Properties

The credit crisis has significantly decreased by 64% the interest of British citizens in real estate in Bulgaria, UK property website has announced.

Rightmoveoverseas.co.uk has announced that the requests for search of Bulgarian properties at the website has dropped by 64% for the period July 2008 - July 2010.

With this decrease, Bulgaria has been assessed as one of the "
market at lost"
, in which the drop of interest is bigger than the average change (-37%) of requests for search in the countries, which used to trigger more than 1000 requests per month.

Dubai has been severely affected, experiencing a drop by 80%, compared to July 2008. Eastern Europe has also lost popularity in the UK.

On the other hand, the Netherlands and Germany have registered 37% and 32,7% increase in comparison to 2008.

Although it has a drop by 11,57% in comparison to 2008, Spain is actually in the category for the countries with good results and it is recovering twice faster than France.

The countries that have good results, according to the website, are the ones who have a drop smaller than the average change, which is -37%.

Irish to Sue Property Journalists for Luring Them to Bulgaria

Property journalists emerged in the summer of 2010 as the latest hate figure in Ireland, most easily blamed by those who lost a fortune or who have been left with unsellable property in foreign countries, including Bulgaria.

Although a case has yet to be lodged, a number of aggrieved investors are said to be consulting Dublin lawyers about launching a case against certain journalists who, they believe, were responsible for misleading them into investing in developments that failed to deliver promised returns.

Bulgaria became a particular favourite for many Irish investors because holiday homes were frequently available at half, or even one-third, of the price of similar properties on the Costa del Sol. Attracted by unrealistic promises of exceptional returns, Irish investors had no hesitation in borrowing heavily to buy cheap buy-to-let homes.

Russian Property Buyers Prefer Bulgaria Most

Bulgaria ranked 1st in the chart of a Russian website for interest of Russian property buyers abroad for July.

According to Prian.ru, in July, 21,55% of all requests for properties were for Bulgaria, while in June the number was a little below 20%.

The website that has been following the interests of Russian property buyers abroad for two years has registered the previous Bulgarian record in November 2008, when the country triggered 21,27% of all requests.

Despite the increased interest in Bulgaria, the difference between the country and the rest of the countries in the chart did not build up, due to the increased interest in the second place of interest – Germany.

The top 10 of the chart have almost not changed for three months. The only difference in July was the fact that Montenegro replaced Turkey in the 8th position.

According to the website, the interest in the United Stated and Finland was decreasing. The drop of interest in properties in the Czech Republic from May and June, however, has stabilized and in July the country ranked 6th with a percentage close to Italy which ranked 5th.

Another change of interest in July was registered for the "
warm"
countries. Although Spain held the third place with 7,22% of all requests, the interest in Turkey and Egypt have decreased.

Not making it to top 10, Thailand, Estonia, Sweden and Cyprus still registered an increase in interest, while Lithuania and Hungary lost positions.

Going Green

Tishman Presents 1st LEED Certified Building in Bulgaria at Sofia Airport Centre

The Tishman International Group presented in the middle of July the first commercial LEED-certified office building in Bulgaria, its newest Class A office building in the Sofia Airport Centre.

LEED (Leadership in Energy and Environmental Design) is an internationally recognized certification scheme of "
green"
buildings.

Tishman's Sofia Airport Center's newest Class A office building, is the first commercial LEED-certified office building in Bulgaria, and is expected to achieve LEED's "
silver"
status by using environmentally friendly construction materials and becoming an environmentally responsible, healthy place to work. SAC design includes sustainable sites, water efficiency, energy efficient materials and resources and overall indoor environmental quality.

The environmental and financial benefits to earning LEED certification include lower operating costs and increased asset value;
the reduction of waste sent to landfills;
the conservation of energy and water and the reduction of harmful greenhouse gas emissions.

The building's energy consumption is drastically reduced due to the use of renewable sources of energy such as natural daylight through open atrium's and double-glazed windows, solar shading via cantilevered sun louvres and dual-coated glass on building façades designed to reduce heat and solar impact and a complex, energy-efficient Building Management System (BMS) that monitors outdoor temperature and regulates climate controls with a variable air volume HVAC system.

The total office and commercial space of the Sofia Airport Centre will be about 180 000 square meters upon completion. The LEED-certified Class A building, which will feature a green roof and an interior garden, has a total office space area of 17 000 square meters.

The already completed logistics centre of the largest Bulgarian business park has an area of 30 000 square meters, and has already been 70% occupied by tenants.

The total investment in the Sofia Airport Centre, a joint project of Tishman International and GE Real Estate, is estimated at about EUR 250 M.

Tishman International Companies is currently active in the United States, United Kingdom and Central &
Eastern Europe including Bulgaria, Hungary, Czech Republic, Slovakia and Romania. The firm specializes, in the acquisition, development, management and financing of commercial real estate. It established its European headquarters in London, UK, in 1986. Its roster of clients and partners has included Metropolitan Life, New York Life, Teachers Insurance, Bank of America, Grosvenor International, Citibank, American Express, Fidelity Investments, Lend Lease, HVB Real Estate, and many others.

GE Real Estate currently has over EUR 1 B invested in Central and Eastern Europe. The Company has invested or developed in the retail, office, residential and logistics sectors in the Czech Republic, Poland, Slovakia, Bulgaria, Hungary and Romania. The Company made its first investment in Turkey in 2006. GE Real Estate has more than US billion in assets and a presence in 31 markets throughout North America, Europe, Asia, and Australia/New Zealand.

Realtors' Forecasts for 2011

Green Shoots of Revival for Bulgaria Construction Sector Expected in 2011

A mix of global slow-down, restricted financing and withdrawing investors have brought Bulgaria's construction sector to a stalemate, but entrepreneurs hope that the first green shoots of revival will emerge in the spring of 2011.

"
We are in for a tough winter, but hope that the spring next year will bring the first signs of recovery,"
Svetoslav Glosov, chairman of the Bulgarian construction chamber, commented at the end of October as the sector celebrated its professional holiday.

"
This year the construction sector suffered its heaviest blow, marking a more than 20% decrease over last year,"
says Ivan Boykov, Executive Director of the chamber.

Just three years ago Bulgaria, a confident European Union new member, was celebrated as a property hotspot with healthy growth in all segments. These days, frozen projects and bankrupt investors paint a gloomy picture and there is growing alarm that the big boom is on the brink of becoming the big bust.

The people in the sector now hope to bottom out of the crisis in 2011 and say they rely entirely on European Union funds, which may finance transport, environment, regional development and agriculture projects.

The expected launch of construction works at Belene nuclear power plant on the Danube river will create 15,000 new jobs.

Bulgarian Experts: Real Estate Prices to Hit Bottom in 2011

In 2011, priced for apartments in Bulgaria will hit bottom and go upwards by the end of the year, according to forecasts by real estate experts.

Data from the national statistics showed that the average prices for apartments have returned to their levels from three years ago.

In the third quarter of 2010, the average price was BGN 960 per square meter. In the first quarter of 2007, it was BGN 988 per square meter.

Since Bulgaria's entry to the EU, the prices started to go up from 2007. They continued to rise until the second quarter of 2008 and reached BGN 1,418 per square meter. Then, they started to go down.

According to experts, an increase in the number of deals would be the first positive factor that the property market is getting out of the crisis.

They have said that the demand for residences will depend on employment, salaries and access to credit.

The net incomes of people continue to decline and employment prospects are not clear, which makes people limit their expenses for everything that is not a necessity.

Bulgaria Real Estate Investment Market to 'Take Longer to Pick Up'

It is going to take a little longer before the real estate investment market in Bulgaria improves due to the opportunities available at the moment in western Europe, according to the managing director of Tishman Management Company.

"
A number of the American and European investors would prefer to invest in those markets than to be investing in the emerging markets like Bulgaria, where the additional risks are not truly reflected in yields,"
Julian Edwards, Managing Director of Tishman International Ltd. and Managing Director of Tishman Management Company, EOOD, said in an interview for Novinite.com and its "
International Survey: Bulgaria-USA."


Asked about how Sofia Airport Centre, co-owned by Tishman International Companies and GE Real Estate for Central and Eastern Europe, remained on track despite Bulgaria's deteriorating market conditions, Julian Edwards said:

"
When we commenced the development of Sofia Airport Center we had clear plans that we felt were achievable. We had financing in place, which has been maintained, and we have continued to be focused on the job at hand and have not varied from our business plan and goals."


He pointed out that Bulgaria offers foreign direct investors a good stable country to work within, a good, well educated work force, an attractive tax regime, lower or just the same risks and costs as in other parts of Europe.

Still the deteriorating economic climate has forced Tishman to stop looking at investment projects in both Bulgaria and Romania but the company is currently in the early stages of considering one or two potential investments.

Eastern Europe's Real Estate Market Headed for Full Recovery - Colliers

Most commercial real estate markets around the world, including Eastern Europe, have passed the bottom and are now on the rise, according to Colliers International Global Investor Sentiment Survey for the third quarter of this year.

A total of 90% of the survey participants said they planned to expand their current level of real estate holdings within a year or as a minimum maintain them at current levels.

The Global Property Clock equates market cycles to specific times, with 12 o'clock representing the top of the market and six o'clock representing the bottom. Each six-hour period in between designates rising (after 6 o'clock, to 12 o'clock) or declining (after 12 o'clock, to 6 o'clock) cycles.

The majority of the potential investors for Eastern Europe (30%) place the market as 8 o'clock on the property clock. An almost equal number of investors (26%) place the clock slightly behind, at 7 o'clock, reflecting a feeling that the market has moved off the bottom firmly toward a full recovery. A further 9% believe the market is already at 9'o clock.

Considering that the majority of investors to the survey in Q1 2010 had placed the market at 5 o'clock on average, this indicates a very swift turnaround in the region's fortunes moving significantly to a firm recovery.

Globally, the largest group of survey respondents, which included real estate investors in every region of the world, put the Global Property Clock for their particular regions at eight o'clock, with the second and third largest groups at six and seven o'clock, respectively.

Colliers: Cautious Optimism Returns to Europe Retail Segment

Rental rates in most European retail sectors are expected to either stabilize or increase in 2011, while prices in Bulgaria and its capital Sofia remain relatively low, says realtor Colliers International.

This is seen as a clear indication that enhanced demand in some of the counties will push up rental rates and optimism is back in retailing, Colliers International experts say.

"
The international market for shopping centre real estate is characterized by less new supply compared to previous years, but the quality of projects has improved,"
Iglika Yordanova, Manager – Retail Services, Colliers International shared.

"
Retail real estate developers are more realistic now, and present projects of genuine value to the market. On the occupier side, retailers are both careful and selective when renting space in shopping malls, yet remain committed to expansion across borders as they perceive that the market currently provides real opportunity."


Three capital cities in EMEA (Europe, Middle East and Africa) are standing out in terms of interest both on the occupiers and developers' side: Cairo, Istanbul and Kiev.

All three cities are characterized by a significant pipeline of large-scale shopping centre projects, as developers respond to an under supplied market. 763,000 sqm of prime shopping mall space is expected to open in Istanbul in 2011, while Cairo has a pipeline of 287,000 sqm scheduled for opening in 2011.

The current average monthly rent for a 100-150 sqm unit in a prime shopping mall in Istanbul is EUR 184/sqm/month, while in Kiev a similar unit rents at app. EUR 120/sqm/month.

In comparison, a mid-size shop in a prime shopping mall in Sofia could be rented at an average rate of EUR 39/sqm/month.

Greek Fourlis Group to Open Bulgaria's 1st IKEA Store 2011

Bulgaria's first IKEA store will be opened in Sofia in the last quarter of 2011, announced George Alevizos, Finance Manage of the Greek group of companies Fourlis.

In an exclusive interview for the Greek Survey of Novinite.com (Sofia News Agency), Alevizos said the economic crisis has not delayed the opening of the IKEA stores in Bulgaria. The Fourlis company is IKEA's franchisee for Bulgaria and several other Balkan countries.

"
We believe to the cyclical aspect of any crisis and Bulgarian economy will return soon in positive growth rates and it is very important when this happens, we will be there ready to offer a better everyday life to the many people in the local market,"
the Fourlis manager stated.

Alevizos told Novinite.com that Fourlis intended to open at least one more IKEA store to be located near the Black Sea city of Varna, and might also consider opening a third store within the next 5 years.

The Greek manager praised the working relations that the Fourlis Group has with Bulgarian authorities and said that any potential traffic issues with the Sofia IKEA store will be resolved.

700 Illegal Sites Near Bulgarian Dams to Be Removed

More than 700 illegal sites near dams across Bulgaria have been established during check of National Construction Control Directorate, the Minister on Regional Development, Rosen Plevneliev, announced.

He has explained that the announcement of the results from the checks is expected to happen by the end of January. The orders for the removal of the illegal construction will be prepared in February and March.

"
There will be more clear and accurate result a the end of April, after waiting for a reaction to the orders,"
Plevneliev said.

On Monday, the minister presented Bulgaria's priorities for the Danube Strategy at a public discussion on Bulgaria's place during the Hungarian EU Presidency.

In his words, a proof that the Danube strategy is working is that third and fourth Danube Bridges between Bulgaria and Romania have already been defiend as projects.

Another specific proof that the strategy is working, in Plevneliev's opinion, is the Bulgarian Hemus Highway, which is expected to be part of a new updated European road network.

Novinite

Nobody There to Fix Bulgarian Beaches after Demolition of Illegal Properties

The rublle of the demolished hotel "
Ramona"
has been left just lying right there on a beach near Varna.
No state institution appears to be responsible for cleaning the rubble of demolished illegal beachfront properties along Bulgaria's Black Sea coast.

After in December 2010, the District Governor's administration in the city of Varna staged a demonstration of state responsibility, and destroyed several illegal resort properties on the very beach, two months later no one has cared to restore the respective beach to its original condition, the BGNES agency reported.

One of the demolished properties is the Ramona Hotel near Varna. Neither the district administration, nor the State Directorate for Construction Supervision have completed the job leaving huge piles of concrete, bricks, and steel to be sucked in the sea by the waves and the tides.

Much of the rubble sinks in the sands on the beach creating all kinds of potential hazards for those who will try to use it for holiday fun.

The Bulgarian authorities will "
traditionally"
take measures after somebody becomes injured, and, of course, nobody will be held accountable for potential incidents.

What is more, after the years prior to 2008 saw a boom of construction of resort properties along Bulgaria's Black Sea coast, many of them built illegally or semi-legally, using loopholes in the legislation, many have hoped that the actual illegal hotels will be demolished at least some of the Black Sea beaches will be restored to their previous condtion. Such hopes have failed to materialize as only a few such properties have been destroyed, and apparently - not all the way through as there is no-one to clear the mess.

==========================================================

Par for the course???

[size=55:2s1z0r4r]novinite

Nobody Out There to Fix Bulgarian Beaches after Demolition of Illegal Properties



No state institution appears to be responsible for cleaning the rubble of demolished illegal beach front properties along Bulgaria's Black Sea coast.

After in December 2010, the District Governor's administration in the city of Varna staged a demonstration of state responsibility, and destroyed several illegal resort properties on the very beach, two months later no one has cared to restore the respective beach to its original condition, the BGNES agency reported.

One of the demolished properties is the Ramona Hotel near Varna. Neither the district administration, nor the State Directorate for Construction Supervision have completed the job leaving huge piles of concrete, bricks, and steel to be sucked in the sea by the waves and the tides.

Much of the rubble sinks in the sands on the beach creating all kinds of potential hazards for those who will try to use it for holiday fun.

The Bulgarian authorities will "
traditionally"
take measures after somebody becomes injured, and, of course, nobody will be held accountable for potential incidents.

What is more, after the years prior to 2008 saw a boom of construction of resort properties along Bulgaria's Black Sea coast, many of them built illegally or semi-legally, using loopholes in the legislation, many have hoped that the actual illegal hotels will be demolished at least some of the Black Sea beaches will be restored to their previous condition. Such hopes have failed to materialize as only a few such properties have been destroyed, and apparently - not all the way through as there is no-one to clear the mess.

[size=55:3reazxj2]BNR

Illegal construction in dam areas: solutions hard to find

A campaign of the National Revenue Agency last summer came across major concentrations of cottages in close proximity to a few Bulgarian dam lakes where construction is banned. This has provoked a more detailed joint inspection of the National Construction Control Directorate and the Ministry of Environment about the legitimacy of structures as well as about the way they may influence water resources. The sites of 52 large dam lakes have been inspected. The inspection has found that from the total of 1470 structures, 748 are illegal and should be pulled down. The Minister of Regional Development and Public Works Rosen Plevneliev identified the location of the top offenders:

“As expected the No. 1 site of offenders is Ivailovgrad dam lake where 169 of 195 inspected structures are illegal. The dam lake of Kurdjali comes second where 130 of 159 structures are illegal, and the third worst offender is Iskar dam lake near Sofia where one-third of the total of 329 structures should be pulled down.”

Minister Plevneliev remarked that the biggest concentration of illegitimate constructions was seen in Southern Bulgaria where most dam lakes are found amid lovely nature sites suitable for recreation and rest. This has tempted local authorities to turn a blind eye to the law. This has resulted in mushrooming private cottages perched in the sanitary belts around dam lakes where the land is exclusive state property. The illegitimate structures represent the legacy of the last 20 years since the fall of communism in Bulgaria.

“The problem with the dam lakes in Southern Bulgaria arises from their natural environs”, the head of the National Construction Control Directorate Milka Gecheva explains. “Small holiday villages have emerged there including cottages but also buildings that used to be recreational homes of many state-owned enterprises. Some of them have survived today.”

This legacy from the past followed by the bill passed in 2003 for the legalization of all existing structures explains why today, close to half of the buildings found close to dam lakes, cannot be pulled down. Formally they comply with the Law on Territorial Planning, though they are in violation of the Law on Water passed in 2005. However, there are other violations of that law, argues Environment Minister Nona Karadjova.

“One serious problem is the absence of sanitary belts around nine dam lakes that supply drinking water to the population. Besides, there are 33 illegal dumping grounds close to dam-lakes. We have issued instructions for clearing these irregularities and we will follow strictly their implementation.”

The inspections have also found out about irregular discharge of untreated waste waters into the dams, about the lack of local water treatment facilities or facilities that do not work properly, as well as about irregular use of dam lake water. As to drinking water, Minister Nona Karadjova vowed there would be no compromise.

“I can assure you that cottages will not be allowed to pollute dam lakes that are meant for drinking water supply”, she told the press.

Admin wrote:

“As expected the No. 1 site of offenders is Ivailovgrad dam lake where 169 of 195 inspected structures are illegal. The dam lake of Kurdjali comes second where 130 of 159 structures are illegal, and the third worst offender is Iskar dam lake near Sofia where one-third of the total of 329 structures should be pulled down.”

Yet again they are talking of demolishing these buildings. If they are decent buildings and not shacks, why not get the owners to pay for their legalisation and leave them?

Because maybe some of the land they have built on dosen't belong to them and if they are allowed to pay now then where would it stop?

LisA wrote:

Because maybe some of the land they have built on dosen't belong to them and if they are allowed to pay now then where would it stop?

Hi LisA,

This is what I mean by legalisation - all land to be properly bought and all permissions for building and the actual building itself, ie. completely legal from all points of view. No reason why this cannot be done retrospectively even if they have to pay fines as well.

[size=55:1hijc7bj]Sofia echo

Destined for destruction



Controversial complex the Golden Pearl – Zlatna Perla – is high up on the priority list of about 1500 illegal buildings to be demolished in 2012.

Regional Development and Public Works Minister Liliana Pavlova said that about 2100 orders for demolition of illegal constructions had been issued.

In recent years, the Government has been on the warpath against illegal buildings, notably including a large number near Ivailovgrad dam.

Some the buildings already demolished included massive two- and three-storey buildings, Pavlova said. In 2011, more than 1300 structures were demolished, including a few hundred each in Bourgas, Sofia and Plovdiv, respectively.

"
Wherever there is a final order and the proceedings are completed, the buildings will be removed,"
she said in an interview with television station bTV.

She named Golden Pearl as one of the first marked for destruction. "
All 10 buildings there will be eliminated this year."


The Golden Pearl saga dates back more than six years. The complex was controversial from the outset because it was built in the Strandzha national park, close to the road between the southern Black Sea villages of Tsarevo and Varvara, in a protected area meant to be free from construction. Some years ago, at the height of the boom of foreign investment in property construction, the Daily Mail warned its readers that British buyers who had bought in the complex might see their investments destroyed. Bulgarian media reports have said that most of those who bought in the complex were foreigners.

Authorities had already said in late November that demolition of the first buildings in the Golden Pearl complex would begin.

However, there had been some difficulty in finding the owners in order to serve the demolition order.

The rules are that after such an order is served, there is a deadline for voluntary demolition. If this deadline passes without the buildings being demolished, the authorities may award a contract to a private company to carry out the demolition.

There was no shortage of companies queueing up for such business, local media quoted authorities in the area as saying.

According to an early January report by mass-circulation daily 24 Chassa, a procedure already had been announced to seek a contractor to carry out the first two orders. In the final days of 2011, the Supreme Administrative Court had confirmed three further demolition orders, bringing the total to five, and the outcome of the rest was awaited, with authorities certain that the court would confirm them.

It is hardly the first time that the demolition of Golden Pearl has been announced. In May 2010, then-regional development minister and now President-elect Rossen Plevneliev said that the complex would be demolished, although at the time no date for this was given.

In the past, buyers said that they would take court action against the state after losing their investment because of the cancelled construction. The years since construction began have seen a series of administrative decisions and court battles over the status of the land in Strandja park.

In August 2008, the Supreme Expert Environmental Council approved Tsarevo municipality's master development plan for construction in Strandja nature park. Earlier, in 2007, a Supreme Administrative Court order, with the consent of Tsarevo municipality, waived the park's protected area status. The court decision inspired mass protests in favour of the park. The National Assembly then approved legislation that areas specially protected by a governmental ruling could not have their status disputed or revoked in court.