March 27th, 2012 — 9:52am
The sale of agricultural land in Bulgaria has peaked up in March 2012 after two months of stagnation due to the winter. The areas of Vidin, Stara Zagora, Razgrad and Haskovo are the most attractive for the buyers. In 2011 the number of sales of agricultural land has increased by 10-13% on the average and in same areas has reached 25%. In 126 000 purchases the buyers have acquired 1,185 million decars of land. The secondary market has a share of about 50% of the purchases and the expectations are in this year this share will grow to about 70%. The increase of the rent of agricultural land has been significant.
Comment » | Bulgaria
February 17th, 2012 — 11:52am
In 2011 the prices of offices in Bulgaria continued dropping, although the average decrease of 3.48% on an annual basis is nothing near to the 18% drop in 2010. Buyers usually expect a price decrease of 30% in case of purchase. The highest price drop was in Blagroevdrad – by 7.71% and in Varna by 6.35%. In Sofia it was minimal – 0,93%. According to the analysts further sharp drops of the office prices are not expected.
At the same time the rental prices of office space have dropped by 18.38% on average for 2011. The sharpest drop was in Blagoevgread – by 26.72% and in Varna – by 25.73%. In the capital Sofia the office rents have increased by 3.08%.
The average yield of office space is 10.59% in Blagoevgrad, 9,71% in Varna and 8.18% in Sofia.
Comment » | Bulgaria
August 4th, 2009 — 11:13am
The number of purchases of property in Bulgaria has decreased sharply according to analysts. In the first six months of 2009 in comparison with the same period of last year the number of property purchases has decreased on average by 42% for the country as a whole and by 58% for the capital Sofia, based on the information provided by the National Statistics Institute. The volumes of the current market are similar to the ones in 2005.
The tendencies which started in the last quarter of 2008 continued and even deepened in the first half of 2009. The buyers are currently waiting to see which way the market will go. Only those who can see a long-term profit risk buy now. Apart from the planned expansion of the big retail chains which started in the beginning of 2009, there has not been a single purchase of land for a big project. The prices of apartments have dropped by 9,7 % only in the first quarter of this year according to the National Statistics Institute. The average price for the country in the second quarter of 2009 is 1074,98 levs/sq m. The highest property prices are in Varna – 1827 levs/sq m, followed by Sofia – 1745 levs/sq m and Burgas – 1471,67 levs/sq m. The lowest price is in Kiustendil – 540, 85 levs/sq m.
The purchase prices of properties drop faster than the rents and returns are becoming higher. The reason for this is on the one hand the crisis in finding financing for a property purchase and on the other the fact that many prospective buyers stay as tenants and thus keep rents high.
The annual return of an apartment in Sofia in the first half of 2009 was 4,5% while in the last half of 2008 it was 4,1 %.
Comment » | Bulgaria, Property
July 17th, 2009 — 10:49am
Office space, shops and industrial space are rented on average for 5 years in Bulgaria. In case of contracts with longer term, the rent is lower than the average and the tenants secure the use of the office for a long time. On the part of the owner long term rental contracts secure a guaranteed income from their property for a long time. Rents in Bulgaria are updated by using a standard method of measuring of the inflation on the basis of the prices of goods, used within the EU. As in most countries the rent in Bulgaria is calculated on a monthly or on an annual basis. The terms for the extension of the contract are usually set in the contract but when the term of the contract expires and the tenant continues to use the space, it is considered that the contract has been extended indefinitely. In such case the contract is terminated by a notification given by any of the parties one month in advance.
Comment » | Bulgaria, Property
June 12th, 2009 — 2:49pm
Vitosha Boulevard in the Bulgarian capital Sofia dropped out of the top 50 most expensive streets in the world. The boulevard is in 53-rd place with an average rent of 120 EUR/ sq m. The rent in all locations around the world have dropped in the last 12 months because of the global recession. Although the most expensive streets are without any competition, the big brand names tend to avoid opening new veniews there and prefer to open smaller shops in other areas.
Number one among them is still 5th Ave, New York with an average rent of 15 000 USD per m per annum. Chanzelysee in Paris is in the second place and Russel Street in Hong Kong is in the third place.
Comment » | Bulgaria, Property