189: Sofia - A Capital Investment Idea
Navigation trail: / latestnews / archive / 189 - published: 06-09-06
As beachfront homes in resorts such as Sunny Beach in Bulgaria and Istria in Croatia are being snapped up like hot cakes, the savvy investor is looking elsewhere for the next big thing. Cities, particularly those in soon-to-be EU member states, are rapidly emerging as the safest bets. As multinational companies look for cost-effective locations for headquarters or major distribution outlets, central and eastern European cities often bag the business and are inundated with workers after temporary or semi-permanent accommodation. So much so that often demand outstrips supply.
Take the Bulgarian capital city, Sofia as an example. With a current population of 1.4 million, the city is the administrative, cultural and industrial centre of the country. Since the fall of communism in 1989, major international companies not previously present in Bulgaria have flocked to the capital city having a direct effect on the property market, particularly the corporate rental market. Recent entrants include Microsoft, Deutsche Bank, Google and Hewlett Packard. Throw 16 universities within the city boundaries into the equation and it’s painfully obvious that quality, high-grade residential accommodation is an absolute necessity for Sofia.
The Wall Street Journal reported in June 2005 that the prices of real estate in Bulgaria jumped 48% in 2004, a world record and the highest rise in prices registered in any country. Yet incredibly, property prices in Sofia still come in a lot less than other Central European countries. The International Herald Tribune stated in March 2006 that residential prices in Sofia still average only 600 euros per m², that is much less than the 750 euro average per m² in Bratislava, Slovakia; 850 euros in Bucharest, Romania; and 1,500 euros in Prague.
Bulgaria’s president, Georgi Parvanov, achieved NATO membership in 2004 and accession to the EU is penciled in for early 2007. The latter has triggered several improvements in infrastructure. The EU Structural and Cohesion Fund has allocated almost six billion euros to Bulgaria, this funding aims to reduce development gaps across the EU. Bulgaria also has dedicated two billion euros to highways, 720km will be added over the next ten years and the new runway at Sofia Airport is due to open in September 2006, at a cost of 110 million euros.
What’s on the market?
Dahlia Residence, Sofia
Brand new development of studio, one, two and three bedroom apartments in the desirable Manastirski Livadi district of Sofia. Set in attractive gardens, the development has on-site shopping facilities and underground parking. All apartments have fitted kitchens, fully fitted bathrooms, PVC windows and pre-installation for telephone, internet and television. Upon completion, expected for January 2007, a letting agency will be set within the complex.
Manastirski is ideally located to Sofia’s main ring road, just ten minutes from the city centre, 10km from the Airport and a short car journey to the Vitosha Mountain ski facilities which form an imposing backdrop to the cityscape. Business Park Sofia (BPS) is also easily accessed; a 300,000m² facility that currently houses 174 companies with a total of 5,000 employees.
Prices from 32,800 euros for a studio apartment. Payment terms - 1,000 euro deposit, 35% on signing of private contract, 35% upon completion and 30% on granting of license of occupation.
Solar Apartments, Sofia
Brand new development of studio, one and two bedroom apartments in the Mladost 4 district of Sofia, ten minutes’ walk from the city centre, 10km from the Airport and strategically placed within a short stroll of Business Park Sofia (BPS). BPS is designed to be the ultimate business address in Bulgaria and apart from being a source of professionals requiring accommodation, it also has a wealth of leisure and entertainment facilities from cafés and restaurants to a multiplex cinema and fitness centre with swimming pool. By the end of 2007 all parts of Sofia will be accessible from BPS thanks to the construction of two new underground stations linking to the city’s efficient metro network.
Solar has on-site shops and underground parking as well as lift access throughout. All apartments have fitted kitchens, fully fitted bathrooms, PVC windows and pre-installation for telephone, internet and television. Upon completion, expected for November 2007, a letting agency will be set within the complex.
Prices from 34,150 euros for a studio apartment. Payment terms - 1,000 euro deposit, 35% on signing of private contract, 35% upon completion and 30% on granting of license of occupation.
Dream Homes Worldwide can be contacted on UK freephone 08000 193 847 or telephone 00 34 952 908 803 email enquiry@dreamhomesww.com or view www.dreamhomesww.com
Source:
Purple Cake Factory SL