Mr. Boyadzhiev, what are the current trends on the real estate market?
The past year, 2017, will be remembered for the unprecedented growth of the real estate market. The investments in this field exceeded EUR 1 billion, thus making it the highest value for the last 10 years. For the first time in several years, the main capital has been coming mostly from large foreign investors, as 71% of the total volume of transactions has been realized from the South-African investment funds. Another example of this was also the yet another large-scale deal concluded just days ago by the South-African Investment Fund NEPI. The company acquired the largest free terrain of 29 dka in Downtown Plovdiv, which used to be a part of the portfolio of “Galaxy Investment Group”.
You have been a part of the National Board of Tourism for a short time and you have observed directly the condition of the hotel market in the country. How would you assess it?
According to data by the BNB for the last year the international tourism revenue amounted to approximately BGN 6.9 billion, i.e. about 10% more as compared to the year of 2016. Of course, we see the resulting direct impact on the hotel business, where the national statistics has also reported a growth, thus raising the necessity of realization of new projects and upgrade of the existing hotel base. All of the above factors make me think that this business field will keep developing until finally resulting in the entry of more international participants into the market.
Does the presence of recognized international brands impact the hotel market in Bulgaria?
The market entry of recognized international hotel chains has very important for adding value to the offered product and for improving the level of customer satisfaction.
In view of the above, our company is one of the pioneers, as the investment portfolio of “Galaxy Investment Group” is orientated mainly towards a high class of assets, a part of which is also InterContinental Sofia. Following its large-scale reconstruction the new five-star hotel has 194 luxury rooms and a multifunctional conference center. Some of the other brands included into our portfolio are Hilton Sofia, as well as the Holiday Hotel Barceló Royal Beach. The presence of such worldwide brands attracts solvent clients and has a positive impact on the image of Bulgaria.
Which are the other business fields with a serious potential for growth?
In my opinion, the growth of the field of outsourcing, which is one of the main real estate market engines and forms over 3.6% of the country’s GDP.
And, despite the fact that the most dynamically developing investment zone is still in Sofia, in recent years there has been strong interest in Plovdiv as well. Along with the available human capital, the reduced operational costs for the companies and its strategic geographic location, the city has become an attractive center for the business. More and more local and foreign companies make serious capital investments in new productions or in the expansion of already existing productions. The increased interest is also evident from the realized deals in “Indistrual Park Markovo”. Its location is of strategic importance for everyone considering an investment in the region. And the presence of an internal road network, electricity and sewerage to be completed by the beginning of this summer provides an opportunity for the quick realization of the production, logistics and commercial projects of the future owners.
It is important to note that the overall development of the field, the increase of the number of workplaces, including good salaries, also result in the increase of the number of deals with household properties. My expectations are for a stable growth of sales of properties under construction by the end of the year and for an increased interest of buyers in higher quality projects implemented by recognized investors. That's why “Galaxy Investment Group” has initiated the construction of a new residential park called “Royal Garden” in Plovdiv, aiming at compensating the lack of such projects in the city.
Source: Manager Magazine