Archive for December 2008


LOANS AND DEPOSITS

December 17th, 2008 — 7:22pm

The number of the customer loans in Bulgaria has not decreased, only the requirements of the banks have become more strict, according to the statistic of the Bulgarian National Bank. The total amount of the bank loans in September was 48.15 billion levs which is an annual increase of 17.55 billion levs or 47.8%. in October the number of the customer loans continued to grow and it has reached 48.9 billion levs, and increase of 750 million levs in one month. The ratio of the customer loans in the bank assets have been constantly increasing and have reahced 71.24% in October 2008.

Between September 2007 and September 2008 the company loans have increased faster than the individual customer loans. The companies have received more than 10 billion levs in loans while the individual customers 5.1 billion levs.

However, it is worrying that the size of the loans exceeds the deposits of individuals and companies – in October they have reached 118.97% of the deposits.
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Comment » | Bulgaria, Economy

Empty Offices

December 15th, 2008 — 12:20pm

By the end of this year it is expected that the unoccupied space in Sofia will rise two fold. According to the predictions this will be about 10% of the total volume of the space for rent in the Bulgarian capital. At the moment the office space in Sofia is 874 100 sq. m. of which 80 000 sq m are unoccupied.

The supply of office space already has overcome the demand. The difference between the beginning of the year and the end is significant. For comparison in June 2008 the office space was just 3.8 % of the rental space. Despite the recession, the construction in the autumn months has not stopped and in September alone new 65 500 sq m of office space have been newly completed, 81% of them in the outskirts of the city, where most of the offices are unoccupied. Alongside the recession, the reason for this is the unfavourable location of these offices. They are mostly in places  with poor infrastructure and bad transport connections. According to the analysts the high number of empty offices is mainly due to the completion of two large office buildings – one near Sofia Airport and the other in the area of Business Park Sofia – where the rent of 18 Euros per square metre is unreasonably high.

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Comment » | Bulgaria, Property

INCREASE OF THE FOREIGN DEBT

December 12th, 2008 — 2:03pm

The maximal new foreign debt of Bulgaria in 2009 will be increased by 25% or 2.5 billion levs (about 1.2 billion Euros) according to the decision of the parliamentary budget and finance committee. The council of Ministers will not make any changes in the credit framework during the year as the loans and the beneficiaries have been already chosen. The largest loan is of 600 million Euros and it is for the construction of the nuclear power station Belene.

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Comment » | Bulgaria, Economy, News

FROM PURCHASE TO RENT

December 11th, 2008 — 6:36pm

In the first months of 2008 rentals have increased by 12% in comparison to the same period of 2007. The major reason for this is the constant decrease of the number of purchases caused by the recession and the lack of clarity about the future of the property market.  More and more potential buyers turn towards renting, rather than buying.  This is due to the restrictive politic of the banks and the growing financial uncertainty, as well as the growing expectations for an upcoming decrease of the property prices.

More and more apartments which have been bought for investment are offered for rent. The one bedroom apartment is the mostly in demand – the interest towards renting such kind of apartments have increased by 14% in the first ten months of this year. At the same time the demand for studios has decreased by 6%. This is due to the fact that the rent of the studios and the one bedroom apartments are similar in size.

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PLANNING PERMISSIONS – DECREASE OF 12%

December 9th, 2008 — 11:55am

In total 2744 new planning permissions have been issued for new buildings in the last quarter of this year in Bulgaria according to the National Statistics Institute. This is an increase by 1.85% in comparison with the previous quarter but in comparison with the last year the decrease is of 11.7%. The number of the issued planning permission in the last quarter of 2007 was 3110.

Despite the recession,  again the highest number of new planning permissions has been issued on the Black Sea coast – Varna takes the first place with 380 planning permissions and Burgas takes second place with 372.  Sofia is only in third place with 287, while Plovdiv is close by in forth place with 274.  Among smaller towns, significant construction projects have been planned in Blagoevgrad (174 planning permissions), Pazardjik (165), Dobrich (143) and Stara Zagora (104).

Logically the highest number of new apartments have been completed in Varna – 2397, while Sofia is in the second place with 1774 and the third place is again on the Black Sea coast – Burgas with 1730 (almost as much as Sofia).

The lowest number of planning permissions have been issued in Vratsa – only 7 – and Montana – 8 – which comes to prove that  the trend of poor economic development in the North-West of the country has not changed.

Concerning the planning permissions for office buildings, the administrative centre of the country – Sofia – is the leader with 22, closely followed by Plovdiv with 18.

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