Dark cloud has a silver screen in Bulgaria
Construction of real estate in Bulgaria has hit the skids over the past year or so, with almost half of registered property developers going into liquidation. That makes any sign of an increase in activity good news indeed.
This slim improvement is the news that Bulgaria’s Cinema City chain have signed an €85 million construction deal over two projects with an Israeli counterpart. The deal, likely to be completed this year, will see two leisure malls constructed - one in Rousse, the other in Stara Zagora, with the mall of Rousse already at an advanced stage of development, whilst the other is still a paper deal.
The developments were originally planned and announced two years ago but market turmoil has pushed the project repeatedly backwards. The projects may be small fry on the scale of the country’s entire construction industry but it does signify the willingness of yet another foreign investor to show faith in investment property in Bulgaria, as well as realising that now is the time to act on the market.