Some of Bulgaria's largest real estate companies specialising in property development were in talks to set up an association, Laguna Group manager Martin Yanev said on February 26, as quoted by Dnevnik daily.

Investor interest in recent years has been directed at building apartment compounds, which were sold to foreigners, who then rented them out. But lately the market, still largely underdeveloped, has been flooded by companies lacking in both professionalism and experience, which had a negative impact on the market.

“Once a complex is erected, it has to be properly maintained and managed by experienced specialists,” Yanev said.

The future association would aim to bring together large property management firms, thus limiting the activity of ill-famed companies, he added.

Negotiations were ongoing and the new organisation was expected to be officially set up in spring 2008, Yanev said. Its initial goals would be introducing unified industry standards and protecting the interests of its members.

The law on tourism does not provide a clear-cut definition on aparthotels, that being fully-furnished apartments rented out for a short break or an extended stay accommodation, which meant they were subject neither to categorisation, nor any control, the developers agreed. With a large share of property development geared towards tourism in Bulgaria, the problems of the tourism sector were also a concern for the developers, Yanev said.

Laguna Group, which in turn is owned by the Dinevi Group, the Bulgarian construction company that specialises in developing luxurious villas, hotels and residential complexes, has initiated the talks and claims to have received keen support from several large property developers in the country.