05 December 2007 Newsletter

Bulgarian people aged 25-35 are the most active mortgage credit recipients. Data by Credit Centre for October 2007 show that they form a share of 55% and are followed by people up to 45 years of age.

The average size of mortgage credits in Bulgaria is EUR 38 000. By the end of the year the number of mortgage credit recipients is expected to grow.

Age	October 2007
18–25	8.06%
25-35	55.33%
35-45	25.42%
Over 45	11.19%

Mortgage credit in BGN	October 2007
up to 20,000	4.44%
from 20,000 to 40,000	28.35%
from 40,000 to 60,000	17.91%
from 60,000 to 80,000	20.89%
from 80,000 to 100,000	16.42%
over 100,000	11.99%

Imam Imot Magazine
15 – 28 November 2007

Shopping mall: fantasy without limits

An ice rink and a car park on the roof, a ship-like building, two 70m-towers – this is only a small number of the surprises which investors hold in store for the public in the 10 and more projects for new malls that are to be developed in Bulgaria.

'Buildings in Bulgaria, just like in other European countries, have a typical architectural style that corresponds with the overall town plan and the architectural environment. There is a growing tendency among architects to introduce in their designs the elements of modern techno-architecture. All current projects for shopping malls in Bulgaria have been developed by two renowned international companies for architecture and design – Chapman Taylor and Laguarda Low – whose designs are symbolic of high quality,' says P. Nicova, commercial project manager at an international commercial company.

Investing in malls is an alluring perspective – building projects are popping up in Sofia, Varna and Plovdiv and in some bigger provincial towns.

The first mall in Sofia appeared at the corner of James Bourchier and Arsenalsky Boulevards. The second one opened doors in Alexander Stamboliysky Blvd., the third was built in Slatina quarter. A common feature to them all is the lack of avant-garde architectural design. Hopefully, things will change under the influence of investors.

There are projects to build shopping malls on three vacant lots in Tsarigradsko Shose Blvd., in the central part near Business Park Sofia and in Bulgaria Blvd., not far from Billa store.

An ice rink and a car park on the roof will impress the visitors to Mega Mall in the Lyulin housing complex, whose construction has started recently.

Two malls of unusual design will be built in Varna: Mall Varna, in the shape of a 5-deck ship, and Varna Towers with two 70m towers, attached to the main building.

The design of a second shopping mall in Plovdiv – Gallery Plovdiv – has been presented recently. The investor fund – European Convergence Development Company – and Chapman Taylor stake on some avant-garde decisions: 3 atria – 2 of pyramidal shape and 1 of oval shape - will be built of glass, thus letting in bright daylight into the building.

04 Sofia centre, 2007

Commercial Statistics

According to data supplied by Regents Property Advisers, a branch office of AG Capital, at the moment Bulgaria has 3 times fewer commercial areas per capital, compared to the countries in Central Europe.

While in Bulgaria there are 64 m² commercial area per 1000 residents, in the other EU countries there are 180 m² per 1000 residents. The only exception is Romania with 20m² commercial area per 1000 residents.

Imam Imot Magazine
15-28 November 2007

No-frills Wizz air flies sofia-varna

Wizz Air announced the launch of new flights from the capital Sofia to the coastal town of Varna, becoming the first low-cost airline to operate domestic flights in Bulgaria.

The first flight will take off on 12 July 2008 and will be initially operated four times aweek. Regular one-way fares start from EUR 9.99, including all charges.

Wizz Air's fare is around ten times cheaper than competing offers from Hemus Air, the only other carrier currently flying between the capital and coastal airports Varna and Burgas. The price is even lower than bus and train fares available to these destinations from Sofia.

Wizz Air plans to expand its Sofia base by deploying an additional new A320 aircraft starting from July 2008. It is now launching its recruitment for pilots and cabin crew to be based in Sofia for staffing the new aircraft.

This will enable it to add four international routes to its schedule, flying from Sofia to Milan-Bergamo, Valencia, Barcelona and Turkey's Izmir; the first low-fare route from Bulgaria to a country outside the European Union. One-way tickets for the new international routes with all inclusive charges start from EUR 24.99. The company also plans to increase the frequencies on existing services to London, Rome and Dortmund.

"This wave of expansion will triple Wizz Air's current capacity in Sofia and will further strengthen its market leadership in the Bulgarian low-cost airline sector," said Jozsef Varadi, Chief Executive Officer of Wizz Air.

The company said it expects to fly 156,000 passengers to and from Bulgaria in 2007 and to increase their number to 1 mln by 2010.

According to company data, it currently has a 35% share of the Bulgarian low cost air travel market.

Dnevnik Daily
28 November, 2007

Germanwings offer bargain flights from Sofia to London, Paris, Berlin.

Low-cost carrier Germanwings announced the launch of bargain flights from Sofia to three European capitals with transfers at the airport of Cologne/Bonn, Germany. "Smart Connect service" will be introduced during the new winter season and is expected to save up to 30% on the ticket price," Andreas Engel, a representative of the company, said at a press conference in Germany on Wednesday.

The average one-way ticket price from Sofia to Paris, Berlin, London and Dresden via Cologne will total EUR 60, including all charges.

The company started servicing flights from the capital Sofia and coastal airports Varna and Bourgas to Cologne and Berlin in March 2007.

It reported 92% occupancy rate aboard its planes and expects to increase its share of the local budget air travel market from 10% at present to 15-20% next year.

Dnevnik Daily
29 November, 2007

World praises Bulgarian ecotourism.

Local State Agency of Tourism (SAT) informs that Bulgaria is elected to become a member of the two most important committees of the World Tourism Organization (UNWTO) for the period 2007-2009.

The choice has been made during the 17th General Assembly of UNWTO that took place in Cartagena, Columbia. The forum was attended by 700 representatives of 150 countries-members and 500 associated and affiliated members.

Bulgaria was elected unanimously for member of the two most important committees: the Programme Committee and the Budget and Finance Committee for the period 2007-2009.

Besides that Bulgaria was elected for deputy chairperson of the Europe's Commission of UNWTO for the period 2007-2009.

This is a high recognition for the country's potential in the ecotourism sphere and biodiversity protection and its contribution to the tourism development on a world level.

Bulgaria is universally acknowledged as example for the tourism development not only as important economy factor but also as key tool for regional development, for nature protection and opening of work places.

Sofia News Agency
27 November, 2007

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