Industry Report Real estate activities 2017 BULGARIA seenews.com/reports This industry report is part of your subcription access to SeeNews | seenews.com/subscription CONTENTS I. KEY INDICATORS II. INTRODUCTION III. REVENUES IV. EXPENSES V. PROFITABILITY VI. EMPLOYMENT 1 SeeNews Industry Report NUMBER OF COMPANIES IN REAL ESTATE ACTIVITIES INDUSTRY I. KEY INDICATORS BY SECTORS SECTOR 2017 2016 2015 The Real estate activities industry in Bulgaria was RENTING AND OPERATING OF OWN OR 13,755 13,171 12,321 represented by 23,265 companies at the end of 2017, LEASED REAL ESTATE compared to 23,612 in the previous year and 23,204 in BUYING AND SELLING OF OWN REAL ESTATE 4,134 5,107 5,687 2015. MANAGEMENT OF REAL ESTATE ON A FEE OR 2,781 2,706 2,611 CONTRACT BASIS The industry's net profit amounted to BGN 496,132,000 in REAL ESTATE AGENCIES 2,595 2,628 2,585 2017. The industry's total revenue was BGN 5,936,844,000 in 2017, up by 18.96% compared to the previous year. III. REVENUES The combined costs of the companies in the Real estate The total revenue in the industry was BGN 5,936,844,000 in activities industry reached BGN 5,332,635,000 in 2017, up 2017, BGN 4,990,645,000 in 2016 and 4,392,480,000 in 2015. by 6.40% year-on-year. The industry's total revenue makes up 6.18% to the Total revenue country's Gross domestic product (GDP) in 2017, compared Net sales revenue to 5.38% for 2016 and 4.92% in 2015. 5,936,844,000 6,000,000,000 A total of 22,463 people were employed in the Real estate 5,500,000,000 activities industry in 2017, compared to 22,021 in 2016 and 4,990,645,000 21,797 in 2015. 5,000,000,000 4,392,480,000 4,500,000,000 Most of the companies in the industry are based in Sofia, followed by Varna and Plovdiv. 4,000,000,000 3,500,000,000 3,000,000,000 II. INTRODUCTION BGN 2,500,000,000 2,872,278,000 2,639,477,000 2,399,036,000 In 2017 the companies in the Real estate activities industry 2,000,000,000 numbered 23,265, distributed in 4 sectors. 1,500,000,000 1,000,000,000 500,000,000 INDUSTRY STRUCTURE BY SECTORS AND NUMBER OF COMPANIES 0 4,134 2,781 2015 2016 2017 The companies in the Real estate activities market of Bulgaria earned combined net sales revenues of BGN 2,872,278,000 in 2017. 2,595 In annual terms, sales marked a growth of 8.82% compared to 2016. In comparison to 2015 they went up by 19.73%. In 2016 sales rose by 10.02% year-on-year. The Real estate activities industry total revenue make up 6.18% to the country's GDP in 2017, compared to 5.38% for 2016 and 4.92% in 2015. 13,755 Renting and operating of own or leased real estate Buying and selling of own real estate Management of real estate on a fee or contract basis Real estate agencies In 2016 there were a total of 23,612 companies operating in the industry. In 2015 their number totalled 23,204. 2 SeeNews Industry Report Share in GDP 7 INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 16.68% 6.18% 6 5.38% 4.92% 5 12.03% 4 3.78% 3 2 1 0 2015 2016 2017 67.50% Renting and operating of own or leased real estate In 2017 the Real estate activities industry contributed to GDP Buying and selling of own real estate BGN 3,990,958,000 in Gross value added (GVA) accounting Management of real estate on a fee or contract basis for 2.35% of the total for the country's economy. Real estate agencies In the previous year, the industry's GVA amounted BGN 3,186,449,000, accounting for 2.09% of the total for the The highest growth, of 22.90%, was recorded by Buying and country in 2016. In 2015 the GVA of the Real estate activities selling of own real estate. There was no industry's sector to was BGN 2,887,605,000, or 1.87% of the GVA for the report a drop in net sales revenues. country's economy. TOP COMPANIES' REVENUE BY SECTORS SEGMENT COMPANY TOTAL REVENUE NET SALES GVA BY SECTORS (BGN) REVENUE (BGN) RANK SECTOR BGN SHARE OF THE COUNTRY'S RENTING AND OPERATING OF OWN OR LEASED REAL ESTATE GVA (%) AYNKAUFS-TSENTAR SOFIYA GMBH UND 316,472,000 11,932,000 1 RENTING AND OPERATING OF OWN OR 2,890,528,000 1.70 KO KG, KLON SOFIYA LEASED REAL ESTATE BUL DOM OOD 252,312,000 0 2 MANAGEMENT OF REAL ESTATE ON A FEE 532,047,000 0.31 NIKMI AD 79,849,000 15,354,000 OR CONTRACT BASIS BUYING AND SELLING OF OWN REAL ESTATE 3 BUYING AND SELLING OF OWN REAL 452,584,000 0.27 ESTATE SF-BT EOOD EOOD 48,896,000 0 4 REAL ESTATE AGENCIES 115,799,000 0.07 ARTEKS IZGREV EOOD 45,882,000 45,882,000 RESIDENTIAL PARK SOFIA EOOD 35,051,000 21,387,000 REAL ESTATE AGENCIES We expect, based on the trend in the last three years, the total ALTA MAR OOD 6,242,000 1,789,000 revenue of the Real estate activities industry to change at a ADDRESS REAL ESTATES AD 5,617,000 5,436,000 compound annual growth rate (CAGR) of 16.26% in 2018. FORTON AD 5,077,000 4,883,000 MANAGEMENT OF REAL ESTATE ON A FEE OR CONTRACT BASIS NET SALES REVENUE BY SECTORS GALLERIA VARNA AD 71,024,000 0 RANK SECTOR NET SALES REVENUE MONOTEO KAPITAL MENIDZHMANT EOOD 28,088,000 0 (BGN) 1 RENTING AND OPERATING OF OWN OR LEASED REAL 1,938,888,000 FEARPLEY AGRAREN FOND AD 18,557,000 1,256,000 ESTATE 2 BUYING AND SELLING OF OWN REAL ESTATE 479,167,000 3 MANAGEMENT OF REAL ESTATE ON A FEE OR 345,579,000 The top 10 companies in terms of total revenue in Real estate CONTRACT BASIS activities accounted for 16.39% of the industry's total in 2017, 4 REAL ESTATE AGENCIES 108,644,000 8.34% in 2016 and 7.89% in 2015. 3 SeeNews Industry Report TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE AP RETAIL I EOOD 31,553,000 INDUSTRY BILLA NEDVISHIMOSTI EOOD 31,433,000 RANK COMPANY TOTAL REVENUE NET SALE (BGN) REVENUE (BGN) 1 AYNKAUFS-TSENTAR SOFIYA GMBH UND 316,472,000 11,932,000 KO KG, KLON SOFIYA The 10 largest companies in terms of total revenue in sector 2 BUL DOM OOD 252,312,000 0 Renting and operating of own or leased real estate earned 3 NIKMI AD 79,849,000 15,354,000 total revenue of BGN 906,488,000 and accounted for 15.27% 4 GALLERIA VARNA AD 71,024,000 0 of the industry's total revenue. 5 SF-BT EOOD EOOD 48,896,000 0 6 ARTEKS IZGREV EOOD 45,882,000 45,882,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR BUYING 7 BULFELD EOOD 43,751,000 43,177,000 AND SELLING OF OWN REAL ESTATE WERE: COMPANY BGN 8 WIEN REAL ESTATE EAD 40,262,000 13,908,000 SF-BT EOOD EOOD 48,896,000 9 TRANSKAPITAL EOOD 37,607,000 19,636,000 ARTEKS IZGREV EOOD 45,882,000 10 IMO PROPERTY INVESTMENTS SOFIA EAD 36,736,000 1,578,000 RESIDENTIAL PARK SOFIA EOOD 35,051,000 SOFIA PARK AD 32,324,000 GALAXY INVESTMENT GROUP OOD 30,750,000 The total revenues of the top 10 companies in the Real estate AP INVESTMENTS AD 29,156,000 activities were 1.01% of GDP in 2017, compared to 0.45% for 2016 and 0.39% in 2015. SOFIA PARK VILLAS AD 24,869,000 ALNUAIMI GROUP EOOD 23,494,000 The top 10 by assets in the Real estate activities industry made PERFORM REAL ESTATE OOD 23,370,000 up BGN 162,122,000, or 5.64% of the total net sales revenue. FILIPOVI-2000 AD 18,563,000 TOP 10 BY TOTAL ASSETS IN THE INDUSTRY RANK COMPANY BGN The 10 largest companies in terms of total revenue in sector 1 NEPI PROJECT ONE EOOD 405,259,000 Buying and selling of own real estate earned total revenue of 2 NATIONAL CULTURE PALACE CONGRES CENTER EAD 392,953,000 BGN 312,355,000 and accounted for 5.26% of the industry's 3 BULFELD EOOD 307,543,000 total revenue. 4 BILLA NEDVISHIMOSTI EOOD 267,930,000 5 SOFIA SOUTH RING MALL EAD 265,855,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR REAL 6 LITEX COMMERCE AD 243,020,000 ESTATE AGENCIES WERE: COMPANY BGN 7 AP RETAIL I EOOD 240,975,000 ALTA MAR OOD 6,242,000 8 GALAXY INVESTMENT GROUP OOD 237,305,000 ADDRESS REAL ESTATES AD 5,617,000 9 IZDATELSKO-POLIGRAFICHESKI KOMPLEKS RODINA AD 235,857,000 FORTON AD 5,077,000 10 IMO PROPERTY INVESTMENTS SOFIA EAD 234,972,000 MBL EOOD 3,055,000 COLLIERS INTERNATIONAL EOOD 2,993,000 OT ZASTROYSHIKA EOOD 2,859,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN YAVLENA EOOD 2,480,000 OPERATING REVENUE IN REAL ESTATE ACTIVITIES RANK COMPANY Y/Y GROWTH ADVANCE EKSPERTNI OTZENKI OOD 2,427,000 1 SIGMA PROPARTI EOOD 406775.00% IZGREV PROPERTY EOOD 2,388,000 2 TIHI EOOD 251750.00% DREAM HOME EOOD 2,327,000 3 RGS OOD 187033.33% 4 BALGARSKA ZAHAR 2002 EAD 118000.00% 5 AVANGARDSTROY AD 111700.00% The 10 largest companies in terms of total revenue in sector 6 HOME VARNA EOOD 100000.00 Real estate agencies earned total revenue of BGN 35,465,000 % and accounted for 0.60% of the industry's total revenue.