Investing in Montana

www.questbg.com, 27.10.2008

Montana Municipality has one of the sparsest populations in the whole of Bulgaria; in fact there are only 46 people per sq km, with 60% of the population living in urban areas. The population in this region also has an aging profile, which means there is and will be an abundance of low cost real estate on the market. It is a region with great property potential having been largely neglected in terms of areas where it could excel like agriculture and tourism.

Agriculture

Agricultural land in this region makes up a staggering 70% of the territory. The climate in this region is ideal for the development of farming and agriculture with temperatures averaging -2 degrees C in January and 26 degrees C in July. The fertile, humus soil on the Montana plains are perfect for growing wheat, corn, vines, sugar beet, barley and potatoes. However, 20% of the agricultural land here remains uncultivated and around 40% of the land owners are aged 65+. Fruit growing is well established in the region with successful crops of apples, pears, peaches, plums and cherries. Production of berries - strawberries, raspberries, blackberries and cranberries has increased in recent years thanks to the introduction of modern equipment. Another of the regions agricultural traditions lies in the breeding of live stock particularly poultry and most farms specializing in poultry now use high tech methods.

Light and Heavy Industry

The region’s most successful industry consists of machine building, metalworking, the production of electrical machines and equipment, the extraction of pit materials and the mining of raw mineral materials like iron, silver, lead and copper ores as well as a coal. Clothing, in particular sport shoes and the food and beverage industry also play a leading role in this area. Chiprovtsi is also famed for its handcrafted carpets, a tradition with roots in the 17th century, which today has grown into a thriving cottage industry with exports all over the world.

Tourism

There is much potential to develop tourism in this region and currently it is grossly under exploited. The abundance of natural resources like the many mineral springs, fascinating natural landmarks, rich cultural and historical heritage and rural treasures make it perfect for a variety of tourist ventures. One of the area’s largest tourist traps is the Ogosta Lake and dam, which is one of the biggest artificial lakes in Europe, yet it remains underexploited in terms of facilities and tourism opportunities particularly water sports and eco tourism. There are three rivers – the Ogosta, Tzibritza and Lom and 56 small dams along with an abundance of mineral springs particularly around the village of Varshetz. The area is also perfect for a variety of outdoor pursuits with over 85,000 ha of forests.

Foreign Investment

Foreign investment in the area has not been as large as in other areas of the country although the construction of the second bridge across the River Danube at Vidin is expected to raise the profile of the area and generate more foreign investment to enhance economic development in the region. The municipality sees economic stimulation as essential and lists the key priorities for development as the infrastructure, revitalization of existing industry, expansion of the region’s agriculture and the development of the tourist industry.

The Real Estate Market

Montana remains one of Bulgaria’s best kept secrets and consequently property and land prices are comparatively low. Average prices for property are in the region of 20,000 Euros. In terms of choice there is much in the way of renovation projects and land deals and experts maintain that land represents the best investment in this region. As food producers capitalise on Bulgaria’s ideal climate and fertile soils, this area is emerging as the best place to invest in land and there have been significant increases in the number agricultural land deals in Montana and neighbouring Vratsa; the Seres investment fund is one of the largest investors in the area. Seres have announced that their aim is to increase its land stock to 250 million sq m by investing in this region as well as in Pleven and Vratsa. Those small investors looking to capitalise on this increase in demand should consider a small holding with large tracts of agricultural land or for those with more experience a farm. A dairy farm with residential buildings and an orchard, spreading over 12 300 sq m of land would cost around 170,000 Euros and would qualify for substantial EU funding.

Other investment opportunities with income potential are those that could be turned into businesses to support the eco and cultural tourism in the area. The neighbouring towns of Varshetz and Chiprovtzi in particular would make ideal bases for any touristic venture. Varshetz is one of the most eye-catching and well frequented spa resorts in Bulgaria and Chiprovtzi is distinguished for its delightful scenery and success as a museum town.

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