Sat, Feb 11 2012
Initial plans announced by the Transport Ministry to sell railway stations Pioner and Serdika are yet again to fall through, Dnevnik daily reported. The paper quoted Minister Petar Moutafchiev as saying that a possible obstruction to the sale was problem with the city's land register. It would take up to a month for the regional administration to prepare a new ground plan for the Pioner station.
Last year, Moutafchiev expressed hopes making more than 160 million leva from the sale of 30 plots of land currently in possession of the Bulgarian State Railways and the National Railway Infrastructure Company. The money would be invested in modernisation of the existing railroads.
Pioner Station in Sofia borough occupies 6 ha and has an estimated value of 24 million leva, while Serdika's estimated worth is 40 million. The railway companies admit that the stations attract many investors. A year ago, it was rumored that a residential complex, a children's entertainment zone and an adjoining parking lot will appear on the 5 ha Serdika plot.
Recently, Dnevnik daily reported that there were developers that have obtained permits to build homes and offices.
According to Dnevnik, Real estate agencies have commented that prices of plots close the stations cost about 950 euro a sq m. Being considerably large terrains, investors are now considered them because of the lack of available plots the city centre.
Serdika station's plot has been long embroiled in controversy, because parts of the 5 ha area are being owned both by the Sofia municipality and the state. Lawsuits to settle the matter have been filed.
Bulgarian Trace and SK 13, Spanish OHL, Greek Terna and Czech Brno are all bidding for the construction of the railway.
Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.
Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.
Nearly all banks are ready to finance between 80 per cent and 90 per cent of the price of a home, provided it is a good building in a large city, Bulgarian daily says.
Property prices in Bulgaria were five to 10 per cent lower in 2011 than in 2010, while initial estimates for this year are that they will remain largely unchanged, with transactions remaining at ‘crisis levels’.
Bulgaria’s capital city Sofia ranks 17th, report says, quoting Global Property Guide.