Prime Realty Investment - Investment company in Bulgaria

The Bulgarian government has updated the terms and conditions for the issue of visas to non-residents.

The new ordinance simplifies the visa procedure for non-residents related to EU citizens. Going forward, these applicants will be required only to certify their kinship or that they are part of the household of the EU citizen.

Postgraduates, students enrolled in one-year courses and applicants sent to Bulgaria by a foreign employer to perform concrete tasks related to the oversight and co-ordination of the implementation of a contract for tourist services will be eligible for a one-year visa under a simplified procedure.

30 March 2008, Sunday

Low-cost carrier Germanwings announced the launch of bargain flights from the Cologne/Bonn and Berlin/Schoenefeld airports in Germany to Burgas and Varna airports in Bulgaria.

The first flights will be conducted in the beginning of May this year.

Flights from Burgas to Cologne-Bonn and back would be serviced on Tuesdays and Sundays, while flights between Burgas and Berlin/Schoenefeld will be carried out on Wednesdays and Sundays.

Flights between Varna and the two German airports will be conducted on Saturdays.

20 March 2008, Thursday

An ultra-modern yacht port will be constructed in the Black Sea Resort of Ravda within two and a half years.

The port is worth EUR 30 M, and will extend 480 m into the sea. Its total area is going to be over 24 000 square meters, and it will contain 450 yacht spots.

The project envisages a highly modern infrastructure, wireless Internet connection, storage and repair base, and stores. The construction is expected to start in the fall of 2008 at the earliest.

Businessmen from Dubai and Cyprus have already expressed their interest in buying yacht spots.

The Ravda yacht port is part of the luxury vacation complex "Emerald Resort", which also includes three tennis courts, basketball and volleyball fields, a bowling-disco club, a restaurant, and a few bars.

The locals expect over 3000 people during the summer season. Ravda is right next to the Bulgarian Black Sea resorts of Nessebar and Sunny Beach, and is 26 km away from the city of Burgas.

21 March 2008, Friday

Return on investments in Bulgarian residential properties is getting more and more dependent on the fluctuations in the sale price than on rental yields, says a report of the Bulgarian economic think-tank Industry Watch.

The report covers the residential market development in the country during the first three months of 2008.

Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March this year.

The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels.

According to Industry Watch the credit crunch in the United States has had a negligible impact on the property market in Bulgaria, but negative influences have not been ruled out in the long term.

Industry Watch forecasts a slow-down in the flow of foreign investments in real estate.

Average annual growth in sale prices is set at 13-14% in the next five years.

Over 115 charter and 20 regular routes will be available this summer from the Varna airport, on the Bulgarian Black Sea coast, said Andreas Helfer, executive director of Fraport Twin Star Management, the outfit operating the Varna and Burgas airports under a concession arrangement.

A total of 48 airlines have so far notified flights to and from the Varna airport. The new additions include Swiss International Airlines and Edelweiss Air with flights to Zurich, Lithuanian Airlines with flights to Vilnius and Air Italy Polska with flights to Katowice and Warsaw while Lvov Avia will be flying to Lvov in the Ukraine.

A host of low-cost carriers will be performing regular flights to and from Varna this summer.

In early April, Norwegian Air Shuttle will open a service to Oslo on Saturdays. Starting June 20, the company will fly Fridays from Varna to Warsaw.

Denmark's Sterling will rejoin the fray in mid-May with a regular route to Copenhagen. The first flight is scheduled for May 17. The company also plans to offer a regular service from Burgas to Stockholm and Gothenburg.

The Danish airline first started a Burgas-Copenhagen service a year ago.

In May, Germany's Air Berlin and Germanwings will resume budget flights from Varna and Burgas to Berlin, Duesseldorf and Cologne.

Wizz Air will be flying from Burgas to Luton, Katowice, Warsaw and Budapest.

In early July, the airline will offer Varna-Sofia and Varna-Budapest flights.

Tickets from Varna to Bratislava, Prague, Vienna, Budapest and Kosice are available from SkyEurope.

Aer Lingus will launch June 11 the first direct regular service from Varna to Dublin. Flights will be performed once a week.

The Bulgarian housing prices increase accelerated to 8.8 quarter-on-quarter in Q4 2007 with annualised growth reaching 35%, local analytical outfit Industry Watch said in a market overview for the latter part of last year.

The Industry Watch data is in line with numbers reported by international real estate consultancies showing the Bulgarian property market as the world's biggest gainer in 2007.

Knight Frank had reported a 34% rise in Bulgarian house prices, a growth margin that has been roughly unchanged in the past two years. However, price growth is expected to slacken of in 2008, decelerating to 15%.

Industry Watch said regional cities posted substantial price gains with Varna and Sofia recorded a nominal growth in excess of the nationwide average.

Among the nation's six largest cities, Ruse posted the highest quarter-on-quarter increase of 14.9%.

Sofia is the residential market that is considered to be most sensitive to the dynamics of domestic mortgage lending. The analysts expect that the brisk lending growth will feed demand for housing in the mid-price range. Any market correction would manifest itself in fewer property deals rather than a price decline.

Sofia homes continue to be significantly more expensive per square meter than those in other regional cities. Residential prices in the capital city are around 40% higher than those in Plovdiv.

None of the regional cities recorded a price decline with six of them posting double-digit growth.

Bulgaria tops the Knight Frank Global House Price Index for 2007 as the country with the greatest annualised price growth at 33.7%, said the global property consultancy.

Prices for flats in Bulgaria over the year increased by nearly 34%.

Price growth in the last quarter of the year reached 8%, yet prices remain relatively low compared with much of Central and Eastern Europe, said the property consultancy.

Price growth has been greatest in the region around Vidin in the North West, and Ruse in the north east, close to the border with Romania. Prices in the capital Sofia also saw significant growth

during 2007. In each case, prices increased by over 50%, said Knight Frank.

Bulgarian housing prices had a torrid run of annual increases in excess of 30% over the past couple of years, shows data of other real estate agencies, but growth is expected to slow down to 15% in 2008.

10 March 2008, Monday

Bulgaria has cemented its reputation as the cheapest package holiday destination on the British market, a survey shows.

A pint of beer and a Big Mac costs just GBP 1.49 in Bulgaria, making it the world's best value holiday hotspot for Brits, according to the survey of Teletext Holidays, a specialized tourism site.

The World's Best Value Breaks Report surveyed holiday costs in 20 worldwide destinations.

The findings cement Bulgaria's reputation as a cheap package holiday destination, with many Brits now shunning the Costas in favour of Black Sea resorts like Sunny Beach and Golden Sands.

Research revealed that traditional holiday favourites such as Spain, which trailed in 17th place, Italy and France are left firmly in the shade when it comes to value-for-money escapes.

The Teletext Holidays survey claimed average hotel prices in Spain vary between GBP 80- GBP 145 per night, while holidaymakers have to fork out GBP 18 for a three-course meal.

Although Bulgaria boasts the cheapest pint in Bulgaria - costing 49p - beer-lovers can also enjoy a cheap booze-up in Morocco (51p), the Czech Republic (61p) and South Africa (83p).

Marrakech, famed for its winding souks, minarets and medinas, is singled out for offering luxury breaks at affordable prices. A five-star hotel room with breakfast in the city will set the visitor back GBP 80.

Two other African hotspots - Tunisia and Egypt - are also recommended for holidaymakers on a shoestring, while Greece, Turkey and Portugal are other short haul winners.

Surprisingly, two long haul destinations are featured in the top 10. Despite the flight costs, splashing out on a three-course meal in South Africa or India won't cost more than a tenner

20 February 2008, Wednesday

Named the world's strongest price riser in 2007, Bulgaria's property market is expected to keep up its momentum this year, experts said.

Amidst a global cooling of the property market, residential prices are forecast to grow by up to 20% in 2008, down by an average of 15% last year, Martin Gikov from UniCredit Bulbank projected.

He presented the bank's analysis of the property market and the prospects for its development up to 2009.

In view of the forecast rising prices following the county's accession to the European Union, the sellers on the house market decided to play a wait-and-see game, slowing down supplies and pushing prices up, Gikov explained.

The British and Irish home hunters are pulling out of Bulgaria's property market, unlike the Russians and Scandinavians, who are the most enthusiastic property buyers for the time being.

Mortgage credits grew by 67% in 2007 as compared to the previous year, Levon Hampartzoumian, UniCredit Bulbank CEO commented, denying reports of a speculative bubble in domestic lending.

He ruled out a Bulgarian repeat of the severe credit crunch that the United States faced.

14 January 2008, Monday

Named the world's strongest price riser in 2007, Bulgaria's property market is successfully keeping up its momentum in the first month of the new year, realtors said.

The capital city of Sofia and the Black Sea town of Varna are recording the most impressive growth with asking price levels in the most expensive districts nearing EUR 1500/m2.
The districts of Yavorov, Ivan Vazov and downtown Sofia remain the costliest residential areas in the capital, commanding prices of EUR 1467/m2, EUR 1466/m2 and EUR 1425/m2 respectively.

Prices of residential property in the most expensive districts of coastal Varna, such as the Greek neighbourhood, overtake those in the capital with offers averaging EUR 1561/m2.

Experts point out that the sale prices levels are usually from 5% to 10% lower that the asking prices.

Bulgaria recorded the world's strongest house price growth last year amidst a global cooling of the property market. A study carried out by Global Property Guide (GPG) set the country's house price growth at 30.6% (15.4% in real terms) to end-Q3 2007 from a year earlier.

6 January 2008, Sunday

Yet another research has pointed Bulgaria as the country with the world's strongest house price growth last year amidst a global cooling of the property market.

The study carried out by Global Property Guide (GPG) said Bulgaria saw the world's strongest house price growth at 30.6% (15.4% in real terms) to end-Q3 2007 from a year earlier.

Shanghai came in second, despite efforts by the Beijing government to cool the market. House prices there rose by 27,85 percent in 2007.

The survey, which provides information for potential property investors, says that while the housing market gained momentum in the Asia-Pacific region, it slowed in Europe and "crashed" in the US.

In Europe most countries registered unimpressive y-o-y house price changes in 2007, aside from Norway and Estonia, the survey shows.

Ireland's house price plunge continued, with a 4.68% y-o-y drop to October 2007. When adjusted for inflation, the drop is more pronounced at 9.1%. The Irish housing market is vulnerable to interest rate changes, as 85% of mortgages are variable rate, GPG comments.

The Baltics performed quite well in terms of house price changes from a year earlier, but the latest quarterly data presents a picture of a region whose housing markets are in trouble.

In Latvia apartment prices have dropped by 7.7% to September 2007, over a quarter earlier. Lithuania's apartment prices have stagnated at LTL 12,500 (US$5,213 or €3,620) per sq. m. in the last two quarters. In Estonia quarterly house prices increased by 23.4% y-o-y to Q3 2007, lower than the 28.6% growth to end-2006.

Norway's housing markets are showing signs of nervousness, despite a strong performance this year. The house price index for the entire country increased 11.6% y-o-y to Q3 2007 (11.9% in real terms due to slight deflation). However, prices in the metropolitan area of Oslo-Baerum fell 0.5% from Q2 to Q3 2007.

Spain recorded 5.31% y-o-y house price growth to Q3 2007, the lowest rate of increase in nine years. Higher interest rates have dampened demand, and banks have become very careful in granting housing loans.

A slow down was also evident in the UK, though less sharp than expected. British house prices increased 9.7% y-o-y to Q3 2007, less than 2006's y-o-y increase of 10.5%. When adjusted for inflation, the house price increase in Q3 2007 was 7.5%, slightly higher than the 7.3% rise in 2006.

House prices in Italy and Greece have also cooled. Mortgages in these markets are predominantly based on variable interest rates.

Although mortgages in Denmark, France and Germany are mostly based on fixed interest rates, their housing markets have nevertheless cooled. Other European countries which experienced house price slow downs are Sweden, Poland, Finland, Netherlandsand Switzerland.

France has increased tax deductions on mortgage-loan interest rates, a measure expected to hold housing demand firm.

17 December 2007, Monday

Budget airline EasyJet will start daily flights from Sofia to London on January 22.

The British no frills airline announced Monday that the decision for daily flights comes in response to the increased demand for the company's services.

EasyJet, which is considered to be the second-biggest low fare airline company after Ryanair, stepped on the Bulgarian market in November with low-cost flights to London Gatwick three times a week on Tuesdays, Thursdays and Saturdays.

WizzAir, Germanwings, Easyfly, Sky Europe, My Air, Air Italy and Norwegian Air are the other low-fare airline companies conducting flights from the three Bulgarian airports to other European cities.

Data shows that no-frills airlines account for about 40-50% of the aviation market in the country.

Property prices in Bulgaria rose faster than anywhere else in the world in 2007, according to a survey by a leading British estate agency.

The European Union's newest member topped the latest Knight Frank Global Price Index with an annualised property price growth of 30.6 %. Bulgaria ranked three percentage points above the south-east Asian economic powerhouse of Singapore.

"Despite numerous concerns over the level of oversupply in a number of locations within Bulgaria - notably the winter ski resort of Bansko and selected coastal resort locations - Bulgaria has supplanted the previously top performing Baltic hotspot at the top of the Knight Frank league," the report declared.

Last year, the highest ranking country was Latvia, which saw property price growth of 56.9%. However, this dropped in 2007 to 10.9%, on concerns about overpricing in the Latvian capital, Riga.

Budget air carrier Wizz Air Tuesday announced on its website that it would expand its Sofia base by deploying an additional new A320 aircraft starting from 12 July 2008.

The airline will start new flights from Sofia to the domestic Varna airport, on the Black Sea, becoming the first low cost airline to operate domestic flights in Bulgaria.

Concurrently, the launch of the Sofia-Izmir flight will be the first low fare route from Bulgaria outside of the EU, said Wizz Air.

Tickets are already on sale with one way all inclusive fares starting from as low as 9.99 euro for Varna. The average price for a one-way fare will be 60-80 levs if it is purchased on the day of the flight, said József Váradi, chief executive officer of Wizz Air. Travelers will pay additional charges for non-carry-on luggage.

The Wizz Air fare is around ten times cheaper than competing offers from Hemus Air, the only other carrier currently flying between the capital and coastal airports Varna and Burgas. The price is even lower than bus and train fares available to these destinations from Sofia.

Wizz Air also said will be adding routes to Milan-Bergamo, Valencia, Barcelona and Izmir (Turkey), and will increase frequencies on existing services to London, Rome and Dortmund.

Germanwings is expected to announce Wednesday its plans for Bulgaria which will include the launch of 5-6 new external destinations.

Another no-frills carrier operating on the local market, SkyEurope, said it has no plans for domestic routes at this point.

BDZ, the national railway carrier, currently offers one-way fares to Varna at 21.90 levs.

The resort apartments market in Bulgaria continues to grow with increasing pace, show the latest research findings.

As a result the total number of holiday homes units as of June 2007 is in excess of 76,500.

In the mountain resorts supply increased by 52% during the first half of the year, after almost 10,000 new apartment units were put on the market.

The growth was most significant in the Bansko area (including Razlog), which accounts for 78% of the new supply.

Supply in coastal resorts also increased substantially and recorded a 39% growth, or 13,500 apartment units, in the first half of 2007.

Although Sunny Beach continues to account for more than one third of the supply in this segment, other resorts saw accelerated development as well. In St. Vlas and in Sozopol holiday homes supply increased by 52% and 62% respectively.

Overall sales prices in the resort apartments segment remained unchanged for the past half year as supply continues to outpace demand.

Болгария по-прежнему показывает наибольшую прибыльность среди стран Восточной Европы. В 2006 г. общий объем иностранных инвестиций в недвижимость достиг рекордной отметки в 427 млн. евро…

В советские времена тех, кто уезжал по путевке в солнечную Болгарию, провожали со словами: «Курица не птица, Болгария не заграница», а саму страну считали чуть ли не шестнадцатой республикой СССР. Наши магазины были завалены болгарскими томатами и сигаретами, а практически все жители этой милой страны, с которыми нам приходилось общаться, прекрасно говорили по-русски. Сегодня ситуация кардинально изменилась. Некогда дружественная нам Болгария вступила в Европейский Союз (ЕС) и даже в НАТО, а болгарские мальчишки и девчонки мечтают уже не о том, чтобы поехать учиться в СССР, а о том, как бы, окончив школу, уехать на заработки в страны Старой Европы.

Но что осталось незыблемым - так это хорошее отношение болгар к россиянам. Мы по-прежнему самые желанные туристы, приятные гости и, конечно, покупатели болгарской недвижимости.

По статистике, россиян, приобретающих недвижимость в Болгарии не так много - всего 5% из общего числа иностранных покупателей. Сегодня до 60% иностранных владельцев недвижимости - англичане. До вступления Болгарии в ЕС они скупали целые села на кредитные средства своих банков. Ведь по всем прогнозам, после вступления цены должны были заметно вырасти, - уж кто-кто, а жители британских островов извлекать прибыль умеют. И действительно, в течение нескольких лет цены в стране росли ежегодно на 35-40%. И хотя сейчас, конечно, такого существенного роста ожидать уже не следует (по данным экспертов, средняя стоимость объектов класса люкс на болгарском побережье за 2007 г. возрастет на 25%), Болгария, наряду с Румынией, по-прежнему показывает наибольшую прибыльность среди стран Восточной Европы. В 2006 г. общий объем иностранных инвестиций в недвижимость достиг рекордной отметки в 427 млн. евро, а на будущее только британская девелоперская компания European Future Group приобрела в разных районах страны земельные участки, на которых планируется построить объекты недвижимости общей стоимостью 600 млн. евро. В то же время аналитики ведут все больше разговоров о том, что рынки восточноевропейских стран оказались сильно переоценены, а, следовательно, можно ожидать снижения цен на недвижимость. Но это скорее относится к малокомфортному жилью вторичного рынка.

Однако далеко не все россияне рассматривают покупку дома на берегу Черного моря только как выгодное вложение денег. Многие хотят просто приезжать на отдых в собственный уютный домик. В одной только Варне проживает около 30 тысяч россиян, половина из которых находится там постоянно, а вторая половина приезжает летом «на дачу». Видимо поэтому болгарские риэлторы считают, что будущее - за покупателями из России. Ведь сегодня любой человек, чей доход составляет 1500-2000 евро в месяц, может стать владельцем жилья в Болгарии. А уж о красотах и удобствах этой страны кому не знать лучше, чем ее ближайшим соседям - россиянам. Чистейшие песчаные пляжи, старинные города, построенные «лесенками» на склонах гор, пряная кухня, великолепный сервис. У болгар есть только один «недостаток»: они не переставая курят и пьют крепкий черный кофе литрами. Причем курить разрешается даже в купе поездов.

Сегодня Болгария активно застраивается. Это происходит в первую очередь в крупных городах, на берегу моря и в районах горнолыжных и СПА курортов. На побережье строятся великолепные современные жилые комплексы - просторные квартиры с видом на Черное море со всеми мыслимыми удобствами, оборудованные самой современной домашней техникой и даже мебелью (Sunny Fort, Golden Fort, Emerald и др.). Причем фирмы, которые их продают, готовы взять на себя все хлопоты по присмотру за недвижимостью, и если необходимо, даже сдавать ее в аренду. В последние годы в Болгарии активно развивается туризм: количество туристов стабильно увеличивается на 25% каждый год. Так что сдача жилья в аренду может стать хорошим бизнесом. Но эту возможность нужно при покупке обговорить в договоре, как и предполагаемый доход. Сдача в аренду квартиры или дома на берегу моря принесет не меньше 4-8% годовых. В сезон сдать домик на море можно за 1200-1400 евро в месяц. Сдача дома на год обеспечит меньшую доходность, зато гарантированную. Ведь если дом сдавать в аренду неделями, то аренда стоит дороже, но невозможно представить, что он будет одинаково востребован в течение всего года. Впрочем, тем, кто намерен извлекать из своей покупки постоянную прибыль, имеет смысл присмотреться к строящимся комплексам в районах горнолыжных курортов и минеральных источников. Квартиры в таких районах пользуются спросом в любое время года. И цены вполне приемлемы: например, апартаменты с одной спальней в строящемся комплексе Riverside Ski Resort в центральной части горнолыжного курорта Банско можно купить за 47-50 тыс евро.

Цены на жилье в Болгарии значительно ниже цен на аналогичную недвижимость, скажем, в Испании. Стоимость элитных апартаментов в современном жилом комплексе начинается от 1000 евро за кв м. В Софии средняя цена квадратного метра равняется 1050 евро. В районе курортов цены по болгарским меркам высокие: до 1600 евро за кв. м. Новый двухэтажный дом можно купить за 90-100 тысяч евро, трехэтажный - за 180. Самая дешевая недвижимость в Болгарии - дома, расположенные в так называемой материковой части страны, вдали от моря. Старый домик с неплохим участком можно купить даже за 15-20 тысяч евро. Но и продать его будет непросто - все-таки, покупателей в первую очередь привлекает знаменитое Черноморское побережье, а что делать москвичу в болгарских селах, лесах или горах - не очень понятно. Тем не менее, такие предложения на рынке тоже есть.

Приобретая недвижимость в Болгарии, необходимо обратить внимание на несколько важных моментов. Во-первых, здесь принято в стоимость квартиры включать также и, так называемое, пространство общей площади. Поэтому, приобретая квартиру, реальной площадью, скажем, 80 метров по цене 1000 евро за квадрат, не удивляйтесь, что ее стоимость окажется равной 88 тысячам евро. Восемь лишних метров - это пространство лестничной клетки и других общественных зон. Кстати, в дальнейшем придется оплачивать и их содержание - а это лишние 300-400 евро в год. Во-вторых, приобретая дом или коттедж, обязательно попросите местного юриста проверить наличие всех правоустанавливающих документов и подтвердить «статус» земли. Например, земля может иметь запрет на строительство по геологическим или иным причинам. Недавно Дирекция по контролю за национальным строительством (DNCC) издала 18 постановлений о сносе нелегальных построек в районе Iskur Dam. Владельцев коттеджей в пригороде Софии, построенных, по мнению властей, нелегально, попросили снести здания добровольно. А значит, теоретически, не зная местных законов и правил, можно легко оказаться и собственником такой недвижимости.

Все сделки с жильем в Болгарии регистрируются у нотариуса. Сделка длится около месяца. Как правило, сначала требуется заплатить 10% от стоимости будущего жилья. После этого объект снимается с продажи и закрепляется за покупателем. Остальные деньги вносятся уже после подписания договора. При покупке квартиры на первичном рынке у покупателя есть возможность вносить деньги частями: рассрочка обычно дается на год.

Болгарские банки не очень любят кредитовать иностранцев, исключение составляют лишь те из них, кто не менее двух лет ведет бизнес в Болгарии. Вообще, страна очень жаждет прихода иностранных бизнесменов и соответственно, инвестиций, поэтому для тех, кто вкладывает денежки в болгарскую экономику, придумано множество преференций. Например, право на длительное пребывание в стране.

Оформить ипотечный кредит на покупку жилья можно в российском банке под залог российской квартиры, или же взять потребительский кредит, расходование которого не отслеживается банком. Но недавно появилась еще одна возможность: крупные болгарские застройщики, осуществляющие инвестиционные проекты вместе с банками, заявили о своей готовности кредитовать россиян под 8% годовых. А поскольку отношение к российским покупателям за рубежом меняется в положительную сторону буквально на глазах, то можно прогнозировать, что процент будет постепенно уменьшаться, а программы кредитования становиться все более лояльными к российским заемщикам.

И вот последняя, сногсшибательная новость с рынка болгарской недвижимости: Филипп Киркоров, находившийся с гастролями в Болгарии, купил 12 роскошных квартир в элитном комплексе Emerald на Черноморском побережье. Комплекс из 800 квартир был построен в прошлом году и почти весь уже распродан. Квартиры в Emerald поражают роскошью: здесь есть несколько видов бань, сауна, бассейны и даже ледяная комната, где можно скрыться от жары. По некоторым сведениям, две квартиры певец купил для себя, а остальные рассматривает как выгодное вложение денег.

Ольга Хвастунова

Sales of vacation homes on the Bulgarian Black Sea coastline to Russian buyers have become to outnumber the transactions involving British nationals.

English-speakers drove 80% of the market just a year ago but that ratio has since been reversed and now British buyers account for only 20% of property transactions.

Nationals from the Baltic states, Romania, Belarus and Kazakhstan have also snapped up local vacation properties in significant numbers.

Buyer paradigms are also shifting. The Britons were looking for bargain prices while the Russians are less price-conscious but big on high-end add-ons like a beachfront location and the proximity of spa, fitness, swimming and tennis venues.

The market overview indicates that holiday homes along Bulgaria's southern coastline have appreciated by an average of 18% so far in 2007 in comparison with the year-ago period.

Sozopol properties are fetching 800-1,500 euro/sq m, up from 600-1,200 a year ago. Tsarevo has moved into the 600-1,100 euro/sq m range, improving from 500-950 euro in 2006. The asking sale prices for vacation homes in Lozenets have increased to an average of 600-1,200 euro/sq m versus 500-1,000 euro a year earlier. Prices in Primorsko rose to 600-1,100 euro/sq m from 550-950 euro in 2006.

The price gains were registered mainly by properties with value-added services and facilities in close proximity to the beach. The owners of such properties posted a return of 5% to 7% this summer, said Pehlivanov.

British no frills airline EasyJet announced on Wednesday it would add seven new routes to its network this autumn, including Bulgaria.

EasyJet, which is considered to be the second-biggest low fare airline company after Ryanair, will start regular flights from Sofia to London.

The route will be serviced three times weekly on Tuesdays, Thursdays and Saturdays from Sofia airport to London Gatwick.

The virgin flight will be conducted on November 6.

Prices stand at EUR 33.99 for a one-way ticket and EUR 75.77 for a return ticket, airport fees included.

A month ago London-registered low-cost carrier Wizz Air, the first no-frills carrier to enter the Bulgarian market, announced the launch of new flights from Sofia to Dortmund. This is the airline's third route from Sofia. It also services flights from the Black Sea airports of Varna and Burgas.

Germanwings, Easyfly, Sky Europe, My Air, Air Italy and Norwegian Air are the other low-fare airline companies conducting flights from the three Bulgarian airports.

Data shows that no-frills airlines account for about 40-50% of the aviation market in the country.

Bulgaria attracted a number of low-cost carriers thanks to its accession to the European Union and fast economic growth.

The airport in the city of Varna, on the Black Sea, has doubled its passenger traffic capacity with the launch of a new terminal, said airport executive director Andreya Andreev.

The 6,000 sq m facility cost 7 mln levs and was financed by Fraport Twin Star Airport Management which manages the airport under a 35-year concession arrangement.

The new terminal boasts 10 check-in desks, two baggage carousels, 6 passport control desks each for arrivals and departures, offices occupied by the customs administration, border police, tour operators and airlines as well as a mix of café and retail outlets.

The new passenger terminal, part of Fraport Twin Star's obligations for immediate improvements to passenger services stemming from the concession arrangement, can handle up to 4 incoming or outgoing flights simultaneously which is around 800 to 1,000 passengers, said Andreev.

Fraport Twin Star Airport Management, a unit of Germany's Fraport AG, is developing a project for another passenger terminal, said Andreas Helfer, general executive director of the concessionaire. The design and construction phases of the project will be completed in 2 years.

Fraport Twin Star has so far invested 2 mln euro in new ground equipment, ambulance and other improvements at the Varna airport, said Helfer, adding that the equipment of the airport's fire unit will be replaced by the end of the year.

Passenger traffic via the Varna airport is seen up 8-10% to 1.7 mln in 2007, said Andreev, explaining the 9.3% year-on-year slump recorded in May to the non-arrival of Austrian retirees that last year vacationed in Bulgaria.

The concession company is in talks with airlines to open new regular routes to Varna. Low cost carriers are also expected to beef up their flight schedule to and from the costal city.

The concession granted to Fraport Twin Star Airport Management, a partnership between Fraport and Varna-based company BM Star, also covers the Burgas airport further south along the Black Sea coastline.

Budget carrier SkyEurope said it will launch flights from Bulgarian Black Sea town Burgas to Krakow, Prague, Bratislava and Budapest.

The Burgas-Krakow route will be available three times a week from June 9, Burgas-Bratislava from June 16 and Burgas-Prague from June 23. No date has been set for the flights to Budapest.

SkyEurope offers an onward coach connection from Bratislava to Vienna.

Norwegian Air Shuttle launched a regular service from Burgas to Oslo on April 14. The flights will be available every Saturday through October.

German no-frills carrier Germanwings started flying from Burgas to Berlin, Cologne and Bonn from May 20.

The Burgas airport expects passenger traffic to increase by 10% to 2 mln in 2007

Developers plan to shoehorn no less than 5 golf resorts between Shabla and Durankulak, a 20 km stretch on Bulgaria's northern Black Sea coastline.

The Shabla municipality said the projects will be developed by Bulgarian Golf Society and Oil and Gas Exploration and Production Co., both part of Varna-based economic conglomerate TIM, Litex Commerce, Bulgaria Hold and Rosinvest.

TIM is also developing a marina project in the Shabla bay area.

The developers are in a rush to secure planning approval and all the necessary documents before the state designates the sites in the area that will be protected under the European Natura 2000 network. The Natura 2000 decision for the Shabla area and the area of the Durankulak lake was postponed for October 2007. Sites with approved masterplan or detailed development plan are not eligible for Natura 2000 protection.

Shabla mayor Velichko Makakov said the developers have squared their plans with the environment ministry and have no concerns about a likely wildlife protection zoning.

The Shabla municipality will participate in 3 of the golf developments. The municipal council has already approved the contribution on the part of the city of 120 ha of land. The city will control 35% stakes in the joint ventures with the private developers.

The first of the 3 golf resorts is located near the village of Vaklino. It will be implemented by Bulgarian Golf Society over a 5-year period.

The second project approved by the municipal council is the golf resort near the village of Ezerets which will be developed by Litex and Bulgaria Hold.

Shabla Golf is the third project involving the municipality. It will be developed by Oil and Gas Exploration and Production Co. on 140 ha near the village of Tylenovo.

Litex and Bulgaria Hold each have one more golf resort in the area. Those projects require no sanction from the municipal authorities because they will be implemented on private land.

The Litex golf course, a partnership with Rosinvest, will take shape near the village of Krapets while the Bulgaria Hold project is located near Durankulak. Neither has building permits but the developers are hopeful they will be granted by September.

Litex Commerce recently announced it will invest some 100 mln euro in a 60 ha vacation complex near Balchik, another coastal town emerging as a major golfing destination along the Northern Black Sea coast. Construction of the 500-villa complex should begin this summer

Over 150 companies from around the world have registered for participation in the inaugural edition of Balkan property exhibition BalPex, said Nedajda Riashi, commercial director of the event.

The exhibition, to be held May 18-20 at the Inter Expo Center in Sofia, will be dominated by residential projects but the number of office, retail and logistics offerings is on the rise.

Growth is robust across all segments of the property market in Bulgaria, said Atanas Garov, managing director of the local office of international real estate consultants Colliers International.

The supply of retail inventory will jump by 300% over the next 5 years while the area of office space will double, said Garov, adding that similar trends are also shaping the markets in Serbia and Romania.

The first edition of a conference on the property investment opportunities in the region will also be held during the exhibition.

The May 17-18 BalPec conference will engage industry professionals in panel discussions on the real estate business and investment climate in Bulgaria, Serbia and Romania.

The event will be attended by the managers of the biggest projects underway in the region like Baneasa Investments, GTC, Engel East Europe, Pradera, Pinnacle, BSDP, Development Capital Management and Eyemaxx

Domestic home prices added 10% in the first quarter of 2007, Bulgaria's statistical authority said on Monday, April 23.

Six regional housing markets have now reached the 1,000 levs/sq m milestone: Sofia, Varna, Burgas, Ruse, Stara Zagora and Plovdiv. Blagoevgrad missed the cut by just 40 levs/sq m.

Local realtors said the market downturn forecasts made in late 2006 fell flat and business was as brisk as usual in March with pricing continuing on the up.

Housing prices are expected to post a growth of 15-20% over the entire 2007 but that mark has already been hit in some regional markets. Residential prices in Blagoevgrad, Targovishte and Varna rose 16% in Q1. Usually buzzless markets like Kyustendil and Silistra were also in the double-digit mix with increases of 11% and 15.8%.

Despite the Q1 gains, the latter two region are still the nation's cheapest with homes selling at 560-570 levs/sq m.

Housing prices in all other regional cities now start from 600 levs/sq m.

Domestic housing prices have rallied 7.74% in the first quarter in comparison with the end of 2006, shows data of local realtors Address based on documented property transactions.

The residential market in coastal city Burgas posted the biggest quarter-on-quarter gain at 17%, followed by Plovdiv with 6.8%. Home prices in Sofia clicked up 2.61% over the end of 2006. Varna edge up 1.06%.

In terms of average housing prices, Varna leads the national market with 765 euro/sq m head of Sofia with 726 euro/sq m.

Loan-financed home purchases increased to 80% of overall transactions in Q1, indicating that the average home buyer falls in the mid-income bracket and is in the market for mid- or low-priced properties.

A large number of developers have ample capital resources and are holding out on off-plan sales.

Bulgaria is still a preferred country by the British for the purchase of real estate, despite negative publications in the media.
The percentage of real estate purchase by foreigners in Bulgaria is 29%, from which 66.87% are by British people. US citizens make 6% of the real estate deals followed by the Germans with 4% and Italians - 3%.

New for the Bulgarian market are citizens of Spain and Malta who look mainly for lands for building. Asta Bridge officials define them as speculators, as they aim at the best gain and not the best purchase. The biggest interest was recorded in the purchase of land in the mountain resorts.

Among UK citizens, it is the Irish who buy the most properties in Bulgaria, the survey revealed. The British usually buy studios or small apartments at the Black Sea coast and pay for them between EUR 50 000 and EUR 100 000.

The Bulgarian municipalities on the booming Black Sea coastline are rushing to commission updates of their zoning masterplans in response to heightened investor interest and in a bid to pre-empt the inclusion of more sites in the Natura 2000 network of protected habitats.

The zoning masterplans of Shabla, Kavarna, Balchik, Varna, Dolni Chiflik, Biala, Nesebar and Burgas are all due for revision.

The zoning masterplans for coastal municipalities Primorsko and Pomorie were rubber-stamped last year. Work is in progress on the zoning masterplans of Tsarevo, Avren and Sozopol, all on the Black Sea coast.

In related news, the Official Gazette promulgated a government decision excluding from the designation of protected sites urbanised areas where a general or a detailed zoning masterplan has taken effect.

The government also announced it has added a further 9 to the list of 17 sites whose development specifications within the Natura 2000 program will be determined in October.

The deferral concerns Sredna Gora, the Western Balkan Range, Sakar, Vasiliovska Planina, Western Strandja, Balchik, Kamchiiska Planina, Belite Skali and Mandra Poda.

Representatives of the regional development ministry are scheduled to meet this week in Burgas with the head architects and mayors of the coastal municipalities to discuss the challenges of construction development.

The emphasis should be on projects like golf courses and eco settlements to avoid the overdevelopment afflicting resorts like Sunny Beach and Golden sands, said deputy regional development minister Savin Kovachev.

Construction intensity will be cut 3-4 times, he said, adding that the reduction will apply not only to newly-zoned areas but also to sites with already approved detailed masterplans.

No less than 5 golf courses projects have been submitted for the areas of the Shabla and Durankulak lakes. Two of the projects are drafted by Varna-based business conglomerate TIM.

The first project is for a complex comprising a swimming pool, villas and a yacht marina at the village of Tyulenovo. The project, developed by TIM-owned Bulgarian Golf Society, will cost around 100 mln euro. The Shabla municipality will contribute 160 ha of land.

The second TIM project concerns 200 ha of land managed by subsidiary company Oil and Gas Exploration and Extraction Company under a 35-year concession arrangement.

Local companies Litex and Bulgaria Hold have tabled the remaining 3 golf course projects, one in partnership with each other and one each independently.

The decision on whether or not the 2 lakes will be included in the Natura 2000 program has also been deferred for October.

Another 3 golf course projects are underway between Balchik and Kavarna. One is developed by Landmark-owned BlackSeaRama, another one by the partnership of Sawyers Development, Barage Co and Balkanstroy and the last one by Barage Co and Balkanstroy.

Electronics retailer Interservice Uzunovi is building a coastal golf course complex near Kaliakra. The fate of that project also awaits the Natura 2000 decision in October.

Golf course projects have also been proposed for the areas of Sozopol, Nesebar and Pomorie.

Dolni Chiflik mayor Borislav Natov said 5 investors are keen to see the updated zoning masterplan of the area. He said the investors plan to develop sea, hunting, rural, balneological and eco tourism.