Банкеръ Weekly

Briefs

LEASE BECOMES MORE AND MORE PREFERABLE

Lease contracts in 2003 increased by 35% from the previous year and 3,300,000 dca have already been rented in that way. Considering the low prices of land and the weak trade in it, the tendency for giving land on lease is expected to gain strength. Indeed, ground rent is not a serious income, but at least the ownership of the estate is preserved. With average plots of some 8 dca, the owners get about BGN50/year. The leader in that respect over the last five years is the Dobroudja region, where the land leased in 2003 was almost 30% of all leased plots in the country. The growth of used leased land was also most significant there - almost 70% up from 2002. Due to the specific characteristics of production in the region, which makes possible the development of efficient agriculture, the level of the rent is among the highest in the country - BGN10-15/dca.Moderate development of lease was registered in central Bulgaria. The most demanded plots there were intended for irrigation agriculture, vineyards and orchards. The rent there was lower than in Dobroudja, BGN4-15/dca.The lowest demand for agricultural land was registered in the Strandja mountain amd the hilly regions of Southwestern Bulgaria. A novelty in 2003 was the created competition between farmers and cooperative farms for leasing land, especially in Northeastern Bulgaria. This will result in an increase of rent payments as early as in 2004, experts claim. At the same time, some of the leaseholders still have difficulties with the payment of rent and delay it for months. This happens frequently when the climatic conditions are unfavourable. Prices for lease in BGN/dca in 2003Region PriceBourgas 20-80 Vratsa 5-10Dobrich 10-15Montana 10-40Pleven 4-15Silistra 5-15Tirgovishte 2-11Haskovo 3-50Razgrad 2.50-13.50

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