Company latest newsletter edition

2. VIP Consult Newsletter, 2008/ February
I. RECENT IN-HOUSE NEWS
1. AEA MEMBERSHIP
constantly looking for expanding
We are proud to announce our our cooperation with other
membership in AEA, the exclusive foreign law firms.
European Association of
Lawyers(http://www.aeuropa.com) Our experience shows that we
The European Association of collaborate in the most efficient
Lawyers (AEA), is an way with offices similar to ours in
international network of offices size, practice area and manner,
covering most of the world’s but we are open to discuss all
countries. The network has its proposals for possible
origin within the European Union cooperation.
and with time, has been
expanding to the remaining
countries in the world, beginning
with the countries that not yet
belong to the EU,and followed by
the majority of countries of
America, Asia and Africa. The AEA
presents the largest net of the
world’s lawyers, as there is no
other net of offices that cover so
many countries and locations.
2. INTERNATIONAL
COOPERATION
Since most of our clients are
foreign physical and legal
persons and the protection of
their interests involve observance
of the Bulgarian and their native
country legal frameworks we are
2

3. 3. CUTTING EDGE - Full Snagging Checklist
Service
Vip Consult carries on a policy - Renewable Energy
of service expansion. In Consultancy
response to our clients needs - Insurances Through
and requirements we already Selected Companies
provide: - Mortgage Services
- Online services
II. BULGARIAN REAL ESTATE MARKET OVERVIEW
Bulgaria has been ranked third were revealed by Deyan
in the world in terms of Kavrukov, a head of Bluehouse
property price growth in 2007. equity fund and a former
Average sale real estate prices partner in Equest, in an
rose by 36 per cent last year, interview with Bulgarian
whereas rentals posted a more National Television. For more
modest mark-up of 6 to 7 per information please visit the
cent nationwide, reaching 10 Bulgarian Statistical Portal /
per cent in Sofia. These figures http://stat.bg/index.html/
1.COMMERCIAL PROPERTIES
1.1Offices & Business Parks
Office space prices will keep on parks are in the making for
growing for at least two years other large Bulgarian cities,
pushed by the lack of including Stara Zagora, Plovdiv
completed large-scale projects. and Bourgas.
Currently, the available office
supply is very limited and the
market does not expect
significant deliveries in the
months to come. For that
reason the concept of the
modern business parks has
developed in Sofia and Varna
during the last 2 years.More
projects for building business
3

4. 1.2. Retail Warehouse & Mall projects
No matter the great variety of Varna and Plovdiv. Major retail
new shopping mall projects in chains continue their expansion
Bulgaria, total inventory in the throughout the country. Hiigh
country remains one of the streets are traditionally the
lowest in Europe. Retail most desirable retail location.
continues to be the most
dynamic commercial real estate
sector in Bulgaria. The first half
of 2007 was marked by the
initiation of many new
shopping centres and retail
warehouse developments.
International developers such
as ECE, Riofisa and GTC have
entered the market with
significant projects in Sofia,
1.3. Logistics & Industrial
Industrial real estate is shaping large-scale projects, with two
up as an attractive segment in industrial and logistics parks
the eyes of developers. Large already in the pipeline (in Sofia
players from Central Europe and Varna) and more planned
and beyond are considering the (in Sofia, Plovdiv and Rouse).
market opportunities. Several Тhe lack of big plots and their
projects are either planned for high price in the city centres
future development or have has imposed their remote
been initiated in the second nal location and some of the
of 2007. Bulgaria’s industrial projects are already planned in
real estate segment has started 10-20 km distance away from
focusing on large, consolidated the towns.
projects, developed according
to contemporary standards. The
market has started developing
towards more consolidated,
4

5. 2.RESIDENTIAL
Prices for residential real estate city centre apartments. Varna
in the 28 biggest cities and retained its lead in the price
towns in Bulgaria grew by an ranking and commanded the
average 28,9 % in 2007 over highest residential property
the previous year, data of the prices - BGN 852/m2, a 19%
country's National Statistics increase over the previous year.
Institute(NSI). The property market of the
The average price paid for second-biggest town of Plovdiv
residential properties across is the third-biggest price riser,
Bulgaria stood at EUR 737/m2 recording an increase of 14% in
in 2007 compared to EUR residential prices year-on-year,
624/m2 in 2006, shows data of followed by the costal port of
Address real estate company. Bourgas (11%) and the
The most popular investment northern town of Veliko
for investors has so far been Tarnovo (9%).
3.HOLIDAY HOMES
The resort apartments market
in Bulgaria continues to grow
with increasing pace. In the
mountain resorts supply
increased by 52% during the
first half of 2007, after almost
10,000 new apartment units
were put on the market. The
growth was most significant in
the Bansko area (including
Razlog), which accounts for
78% of the new supply. Supply
in coastal resorts also
increased substantially and
recorded a 39% growth, or
13,500 apartment units, in the
first half of 2007.
5

6. Although Sunny Beach neighbouring towns and
continues to account for more villages. In St. Vlas and in
than one third of the supply in Sozopol holiday homes supply
this segment, other resorts saw increased by 52% and 62%
accelerated development as respectively. On the North
well. Overbuilding in Bansko Coastal area, Kavarna and
and Sunny beach resorts has Balchik have developed as
directed the supply in the leading holiday-homes centres.
4. LAND INVESTMENT
The price of the land is still low wide limits depending on the
in Bulgaria, especially for plots region, the size of the land and
located in rural areas. Last year its type/ agricultural land or
the land on the Black Sea coast, building plot/. Many foreign
around the beach and ski investors prefer investments in
resorts, around the big cities agricultural land because of its
and towns has increased its lower price and the legal
price. In some areas of Bulgaria framework permitting its
we have 100 % increase only conversion to building plot or
for 1 year. The price range in industrial plot.
III. LEGAL SYSTEM REFORMS
New Commercial Register
As of 02.01.2008 a Trade for company name reservation
Register starts operating on the as well as the Application for
territory of the whole country. inscribing the company in the
The company registration Trade Register. The Law
procedure has been entirely requires the manager of the
amended as per the newly company either to sign and
passed Trade Register Law. submit the above two
As per the Trade Register Law Applications in person in front
an authorized person is not of the officer or to certify them
allowed to sign the Application in front of a Notary Public.
6

7. Under the new enacted law, Companies have three years to
companies bearing the same re-register.
name have two months to make
a change. Afterwards the The new registration system
Registry Agency must change will reduce the time needed to
the names of all such obtain various permits and
companies by adding to them licences.
the name of the town where
each of them was first registed.
IV. EXHIBITIONS / SEMINARS / EVENTS
• THREE KEYS - HOME, OFFICE, VILA Varna - Palace of sport and
culture, International Specialized Exhibition for building and
furnishing - 06.03.2008 - 10.03.2008
• BBW (BULGARIA BUILDING WEEK), Sofia - Inter expo and
congress center, 11.03.2008 - 15.03.2008
• STROIKO 2000, Sofia - in the National Palace of Culture,
26.3.2008 – 1.4.2008
• INTERNATIONAL EXHIBITION FOR ENERGY EFFICIENCY AND
RENEWABLE ENERGY SOURCES, Sofia - in the National Palace of
Culture, Exhibition on Energy Efficiency /EE/ and Renewable
Energy Sources /RES/ - , 07.04.2008 - 10.04.2008
• HOME EXPO, Sofia - Festivalna Hall, International building and
construction exhibition, 11.04.2008 - 20.04.2008
• BALPEX, Sofia - Inter expo and congress center, Balkan
property exhibition 18.04.2008 - 20.04.2008
7

8. For more information on exhibitions & trade fairs in Bulgaria please
visit the following online exhibitions catalogues:
• http://www.fair.bg
• http://www.bulgarr
eklama.com
• http://www.viaexpo
.com
• http://www.ndk.bg
• http://www.stroiko2
000.com/
V. SOURCES OF INFORMATION
Ministry of Justice - http://www.registryagency.bg/en/
National Statistical Institute - www.nsi.bg
Capital Weekly - http://www.capital.bg/
Dnevnik Daily - http://www.dnevnik.bg/
BTA bulletin - http://www.bta.bg/site/bg/index.shtml
VI. OUR ACTIVITIES
We can assist you in all matters regarding:
• REAL ESTATE LAW
• COMMERCIAL LAW
• INHERITANCE LAW
• LABOUR LAW
• LAW OF OBLIGATION
• BUSINESS CONSULTING SERVICES
• INVESTMENT ASSISTANCE
FOR MORE DETAILED INFORMATION, PLEASE VISIT US AT :
WWW.VIP-CONSULT.NET
8