Bulgarian Properties

Industrial Bulgarian properties are likely to become more and more expensive in the next few years. That is property experts’ forecast, which was discussed yesterday at the ‘Balkan Real Estate - Bulgaria, Romania and Serbia’ regional conference. The conference is held in Sofia on April 15 and 16.

According to real estate consultants, the predicted infrastructural developments, transport junctions, the expected raise of economical growth are key prerequisites for changes in the business property market.

The favorable location of Bulgaria in the context of the European Union together with the improvements in tramsport connections will soon form Bulgaria as a logistic destination for many companies operating on the European and Asian markets. The demand of industrial estates is likely to be dictated by large foreign chain-companies and international logistic consultants.

Industrial real estate matkert will inevitably surpass changes and prices will grow. The fact that only 14% of all major global retail chain stores and international companies have entered the Balkan markets should be considered sufficient evidence of how the industrial real estate market will develop.

According to the experts prices will go up, but they are not sure whether the planned industrial projects will meet buyers’ quality requirements.

The bridge between Vidin and Calafat (Romania) must become operational by the end of 2010. That was reminded to Bulgarian officials yesterday by Jeroen van Oel, representative of the European Commission’s directorate for regional policy. Mr. Van Oel met Deputy Transport Minister Vessela Gospodinova, Vidin regional governor Krustyu Spassov, Vidim mayor Roumen Vidov and Calafat mayor Petre Traistaru.

The construction schedule has been alternated to include the four-month delay and the bridge is now expected to be finished by April 2010.

Gospodinova said that the delay was first caused because the project proposed by FCC architects was rejected by state’s engineers. Fomento de Construciones y Contratas (FCC) is the Spanish company which was picked for the bridge construction on Bulgarian side. Later, FCC run into regulatory trouble with Romania, but all controversial matters have already been settled, announced Gospodinova.

Funds for the project have been lent by EU’s ISPA aid programme and the EuropeanInvestment bank, which will provide 70 million euro each. German KfW Development Bank has also lend 18 million euro.

Bulgaria will contribute 60 million in the construction works. Gospodinova also announced that Bulgarian Government is prepared to maintain the balance between the sources if the project runs into new delays.
Spanish FCC was given the permission to construct the 1971-metre bridge and the road and rail infrastructure on Bulgarian side.

The whole project is estimated at 236 million euro, 162 million of which will be paid to the Spanish company in charge of the construction.

Which is the most preferred suburban residential quarter in Sofia/Bulgaria? That was asked recently on one of Bulgaria’s real estate portal.

The inquiry exclude quarters which are close to the city centre and the ones considered ‘worth the distance’ such as Boyana and Lozenets.

It turns out that most people were willing to move and live in Mladost 1,1a,2,3 & 4. They were mostly picked for the well developed infrastructure (bearing in mind both the existing road network and the new traffic projects) and the new business park which was developed a few years ago.

Traffic jams are soon expected to become history for residents of Mladost districts with the new ring road and the underground routes. Although it will take at least two more years for the new underground section to be finished, this does not worry residents at all.

Next in the chart are Vitosha and Lyulin. Mainly because the air is clear and the two are relateviley close to the city centre. Lyulin is also compared to Mladost and many point out even better reasons for buying a property there.

Lyulin favors the easy connection to the center via the underground and the relatively good infrastructure - most major boulevards have a satisfactory traffic capacity, one has access to the complex from several directions, there are still well-preserved green areas and have all necessary amenities - most banks already have offices in the area, commercial centers have been developed, enough schools and kindergartens as well, etc.