Buy & Sell Bulgaria Insight Newsletter

Great interest for our region from English, Cypriot, Greek, Italian, Maltese and Scandinavian Investors.

By Christopher Violaris, BSc, MSc, PhD ( Econ)
Chairman of Eurolink Investment Group

As a token of our long standing promise and commitment to keep our clients and investors fully informed on matters related to the Bulgarian Property Market and considering that we already entered the holiday season, I wanted to bring to your attention, a number of recent developments that affect directly your existing or future investments.

The Greater Varna Expansion Plan:

After long deliberations, changes, additions, exclusions and exceptions to the rules (this is more about culture than politics in Bulgaria), The Greater Varna Expansion Plan is expected to be approved and adopted by the Municipal Council just before the City Council members take their Summer vacations. (Read more about this topic in our BULGARIAN PROPERTY NEWS column). I am very happy to announce to you that all our regions, old and new are included in the new town boundaries and the micro regions provided by the plan. It is needless to say that upon the official publication of the plan, prices in the region will hit new heights.

I would like to disclose some details of the plan, though I am very confident that sooner than I originally thought, we may be in the position to supply you with official copies of the plan.

As it was expected, the grounds that lay between the water front and Marina Gardens are earmarked for a Municipal Marina, a public park, sporting facilities including water sports and a number of taverns and restaurants.

The ground between the new road we are building leading to the Royal Oakwood Golf Course and the State Forest, is earmarked for a five star Spa and Health Centre, that will include an all year round fully functioning medical centre.

The area known as “lower Golf Hills” on both sides of the existing main road that leads to the village of Konstantinovo, is earmarked as a “commercial and business” location that will include a shopping mall, shops and restaurants.

The area lying between the main roads, all the way to the water front, known as Marina Bay, is to be used for construction of a park (300.000 m2) which will include facilities for horse racing and horse jumping and obviously the Marina. The Marina will offer exclusive berthing facilities to 250 luxury boats, while the water front area will be exclusively used for water sport facilities and a limited number of restaurants. Both elevated sides of the bay are earmarked for the construction of “exclusive villas” and residential units, which will have to conform to a number of standards and requirements.

Marina Hills, as it was expected, is earmarked as an “up market residential area, which has to abate to a number of limitations designed to protect the natural beauty and the environment”.

The areas of Panorama, Old Vines, Acropolis and Politeia, will enjoy a more liberal regime and much less limitations. Building plots are smaller (minimum 650 m2), the “foot print” may be as much as 35% and the construction of 3 floor buildings will be permitted.

What comes next?

Historically, everything in Bulgaria can happen as long as there is need for it! Strange as it may sound, but the municipal and state institutions are genuinely interested and ready to assist and promote the development of the regions, as long as there is somebody willing to pay for it! I believe that this time the financing will be found much easier than before. The European Union is ready to finance a substantial number of regional projects. The financing and construction of new road networks, electrification, drainage and sewage systems and other badly needed infra structure projects are a priority for the Varna local authorities. The big question is when? If we take the example of Ireland, the country was re-born in less than 10 years! I am sure Bulgaria will make it much earlier!

It is natural that all these developments will have deep and far reaching effects on the property market and most exclusively on the price of land and plots. I am going to risk a prediction here, though I am always careful on these matters. Before the end of 2010, it will be next to impossible to find land or building plots in the wider area of Varna, for less than €120/sq.m! Additionally, I can not see how small holdings and small investors can keep being actively involved in the property market, when the big property developers move in. In a few words, those who buy now or during the next 3 years will laugh all the way to the Bank, and on the other hand those who will wait until they see the “infra structure” in place, if they are not “home buyers”, will just find it impossible to buy something and make a profit from it.

My advice to all of you is, “if you are planning to buy, buy now”! Why, you may ask!

Here is the answer:

You all know that countries like Cyprus, Italy, Greece, Spain and Portugal, have already witnessed and experienced what is happening in Bulgaria today. The Cypriots, the Spanish, the Italians, etc, have a huge experience on these matters and when they move in, it means that there is a good reason for it! Well in the last 6 months we had a huge number of Cypriot, Italian, Spanish, Greek and Israeli clients, who are buying massively! It is very rare that a single buyer will buy just a plot! They normally buy 3-4 plots; they come in groups of 5-6 and buy whole areas! It will not be an understatement if I was to tell you that soon, the region of Acropolis, which we opened recently, will be taken over by Cypriot clients, while the Italians are targeting what is left at Marina Bay (€100/sq.m).

Recently (18th of June) I had another opportunity to present our projects to a group of interested investors, which was organized by our clients Antonis Constantinides and John Antoniou, at Limassol - Cyprus! Once again the hall was full and I came face to face with more than 60 potential investors, which genuinely came to the presentation determined to invest! It doesn’t stop here though! Most of these clients came with me to Varna and bought land from us and went back to Cyprus to tell their friends!

Christopher Violaris speaking in front of 60 investors at conference hall of “Kapetanios” hotel, Limassol, Cyprus

Surely you, our dear and highly respected old clients, by now you shouldn’t feel lonely and you shouldn’t wonder if you have done the “right thing”! What you did, as pioneers a few years ago, is dared now by hundreds of decent and highly intelligent people, from all over Europe! The difference between you, is just a few hundred thousand euros in your favour!