Bulgarian Real Estate Market A Brief Overview

1
Bulgarian Real Estate MarketA Brief Overview
Pavel Stamboliyski/ p.stamboliyski_at_mee.government.
bg
2
Why Bulgaria?Macroeconomic stability

• Political and economic stability
• Sustained GDP growth of 5 per year
• NATO membership achieved in 2004
• EU membership set for 1 January 2007
• Very competitive labor cost compared to the rest
  of Europe
• Very competitive tax regime - 15 corporate
  profit tax as of 1 January 2005
• Well educated, highly trained multilingual
  workforce
• Full national treatment of foreign investment
• Investment grade rating BBB by SP and Fitch
• Foreign direct investment at 11.7 of GDP (EUR
  2.3 bn in 2004)

3
Why Bulgaria?Top tourist destination

• Bulgaria voted No. 4 tourist destination
  worldwide by The Washington Post
• 22 average annual growth of tourist arrivals for
  2002 2004
• 43 year-on-year increase in British tourists for
  2003
• Well developed and constantly improving summer
  resorts
• Excellent skiing opportunities with guaranteed
  winter snowfall
• Unbeatable prices guaranteeing best value for
  money holidays
• 1600 thermal mineral water springs
• Rich historical and cultural heritage
• Easy access from Europe

4
Why Bulgaria?Booming real estate sector

• Growing economy and increasing flow of foreign
  companies increases demand for top quality office
  premises
• 25 price growth in the last 12 months
• Still lowest real estate prices in Europe
• Strong year round corporate letting market in
  Sofia
• Dramatic increase in demand for quality
  accommodation at Bulgarian resorts
• Strong drive for property purchase from
  Bulgarians living abroad
• Bulgaria on the agenda of top European real
  estate investment funds
• Excellent return on investment rates
• Third most popular destination for holiday homes
  amongst Brits for 2005

5
Top Real Estate Agencies

• www.colliers.com/Markets/Bulgaria
• www.yavlena.com/en
• www.eltaconsult.com
• www.address.bg
• www.adis.bg/en/
• www.bulgariandreams.com

6
Top Construction Companies (2003)
7
Class A office real estate comparison, 1H 2005
8
FIABCI-Bulgaria

• Contact Information
• 36-A "Partriarch Evtimii" blvd. fl. 1, ap. 3,
  Sofia, BG-1000BulgariaPhone 359 2
  9886890Fax [phone]e-mail
  office_at_fiabci-bg.comOther e-mail
  nrpa_at_mb.bia-bg.comChapter ExecutivesPresident
  Mr. Valentin Georgiev SaykovSecretary General
  Ms. Hristina Kancheva Kancheva

9
Success Stories
10
Lindner Bulgaria - Business Park Sofia - A CITY
WITHIN THE CITY Business Park Sofia is a
genuine multifunctional high-tech business park,
which combines the essentials components of
business and the related sectors into one tight
package of opportunities.
11
Parameters of the project

• Total investment EUR 150 million
• 35 buildings
• Plot area 220 000 m²
• Total built-up area 300 000 m² of which
• Main area - 180 000 m² total built-up
• Area of corporate building - 44 000 m² total
  built-up area
• Commercial area - 74 000 m² total built-up area
• 174 companies and growing
• Parking of employees 3 000 lots
• Parking for visitors 1 000 lots
• 10 000 people working in the Park
• 10 000 visitors a day
• www.businesspark-sofia.com

12
Mall of Sofia

• Investment EUR 37 million
• Project design Moore Speakman International Team
  of Architects
• Building description
• The total built-up area is 75 000 m2 distributed
  as follows
• retail and entertainment - 35 000 m2
• offices - 10 000 m2
• underground parking - 22 000 m2 (approx. 700
  car-parks)
• service and common areas - 8 000 m2
• Investors
• General Electric (real estate division)
• Aviv Construction and Public Works
• Cinema City International
• Quinlan Private
• www.mallofsofia.com

13
Welcome to Bulgaria