29.3.2007

BULGARIA’S HOLIDAY HOMES MARKET IS CONTINUING ITS SIGNIFICANT DEVELOPMENT

The total supply of holiday homes in Bulgarian mountain resorts has increased almost fourfold between June 2005 to December 2006, it said. ‘The growth in the last six months alone has exceeded 50 per cent and the total stock is now approximately 18,000 units. Two thirds of the current supply is situated in the Bansko region. Due to the sharp increase of land prices in Bansko, developers are looking to other cities like Borovetz and Pamporovo’.
The number of holiday homes being built in coastal resorts has also seen significant increase. ‘The total supply reached almost 35,000 units, marking a 53 per cent increase in the 6 month period from June 2006 to December 2006. A third of the supply is located in Sunny Beach, which saw unprecedented growth of 65 per cent in the last six months’, said the firm.

It found that demand was coming from private individuals from the UK, Ireland, and also by Bulgarian Diaspora, Russians, Germans and Scandinavians.

‘Sales prices have seen a slight increase in the 6 month period. Colliers’ research shows that the highest asking prices for coastal holiday homes can be found in Sunny Beach followed by St. Vlas and Elenite’, it said. The prices in Sunny Beach range between £390 and £2,000 per square metre depending on such factors as location, amenities, and quality of construction. Prices in St Vlas peak at £1,700 per square metre as do those in Bansko, which continues to command the highest mountain resort prices.

A company acting as a sales agent for new and off plan properties in Bulgaria and Dubai has been wound-up by the High Court in Manchester following an investigation by the Companies Investigation Branch ( CIB ) of the Insolvency Service. CIB's investigation found that Universal, which traded from 249 Kingsway, Burnage, acted as a sales agent for new and off plan properties in Bulgaria and Dubai earning commissions from developers of between 1 per cent and 2 per cent of the agreed sale price. The company received income in excess of £560,000 including £478,000 loaned to the company by 23 individuals. However, the Secretary of State alleged that due to inadequate accounting records, CIB was unable to properly investigate purported property investments and loans by the company in India and Saudi Arabia. Additionally, the enquiry was unable to determine the nature of payments made by Universal and establish whether such payments were bona fide and for the benefit of the company. This included £102,000 drawn from the company's bank account in cash.

A ‘free for all attitude’ in the real estate market has been destroying buyers’ and investors’ confidence in Bulgaria, said the specialist English language magazine Quest Bulgaria when launching a campaign to rid Bulgaria of rogue estate agents. The campaign aims to stop older properties being sold above market value. The magazine claims at some older properties are being sold at up to three times their true value while there is dual pricing of properties on Bulgarian and UK Internet property sites.

‘Whilst most agents are honest and provide a decent service, there are some who are being very greedy and spoiling it for all, especially for the buyers’, said Quest Bulgaria managing director Chris Goodall. ‘We want to put a stop to non-accountability and establish a system whereby both real estate professionals and consumers have recourse in the case of any dispute. Through a code of practice will come more confidence and more sales while at the same time protecting the investment of those who have already bought into the country’.

A carbon offset scheme for trips to Bulgaria has been launched by specialist overseas property agent Jet2let Property. ‘We have implemented this scheme because we all want, and often have no choice, to fly’, managing director Lance Nelson. ‘Before purchasing a property in Bulgaria it is natural that any buyer would wish to visit the country but Jet2Let are determined for its clients to travel and invest in Bulgaria without a net increase in carbon dioxide emissions’. All those who arrive in Bulgaria on inspection trips will, within two weeks, receive a certificate confirming that Jet2Let Property has made payment to www.carbonfootprint.com to cover the CO2 emissions.

Favourable living conditions make Singapore the best place in the world for Asians to live, according to a Location Ranking Survey conducted by ECA International, a knowledge and solutions provider for International HR professionals. Australia, New Zealand, Japan, Canada, Denmark, Netherlands, Belgium, Germany, Ireland and Switzerland make up the remaining top ten favourable locations for Asian expatriates to live in. The least favourable place in the world to live in is Baghdad, followed by Kabul and Karachi.

British Foreign Secretary Margaret Beckett has told a Turkish press conference that it will be difficult to allow direct flights from the UK to Northern Cyprus. Britain had never said there would be direct flights to the occupied areas but would request legal advice on the issue. Beckett added that the advice she received was that ''legally there are great difficulties'' in this issue.