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Investing In Shumen

Shumen lies on a major crossroads between the Rousse -Varna highway, the Sofia-Targovishte-Belokopitovo highway and the Silistra-Yambol highway.

The town is also on the mainline rail route linking Varna to Sofia and Shumen with Komunari in the south of the country. Shumen Municipality is made up of the town and 26 villages and it fills an important place in the economic development of north eastern Bulgaria.

This is one of the country's up and coming regions, the kind of place that you could overlook in your Bulgarian property search because it does not self-promote as other regions do and has up until now lagged behind other areas in terms of foreign investment. However the tide is changing for Shumen (sometimes written as Shoumen) and for the better. As more large international investors take advantage of the areas low land and property prices more development is occurring bringing jobs and wealth to the region.

Industry

The municipality's biggest sector of business lies in the trade and repair of cars as well as home appliances. Heavy and light industry also plays a key role as do manufacturing. Conglomerates who have invested in industry in Shumen include Herti, a company, which manufactures aluminum screw caps, thermal caps for wine bottles, jar caps, aluminum food containers and bottling machines. Lavena are also a major investor in the area involved in such things as the manufacture of medicinal liquids and creams. Lavena is also developing a perfume manufacturing plant as well as producing more natural cosmetic products. Alkomet, one of the country's largest companies also has a base here where they shape aluminum metal and create products from aluminum alloys. In the realms of food and beverage production, Shumen is also famous for its own national brand of beer, Shumensko as well as its production of milk products under the Serdika brand. One of the country's leading wineries, Domain Boyar also has a production site here. The company known as Tropik processes canned food and vegetables, whilst Rizov has a mill for seed cleaning close to the town.


Agriculture

Shumen has plenty of resources available to develop its agricultural industry. The glut of productive land opens up possibilities for further development of the food industry in the municipality. The area's natural resources are perfect for vineyards, grain, sugar beets, and the breeding of livestock. The area is currently home to a science institute, which works with livestock including horse and buffalo breeding as well as the development of sugar beet.
The municipality includes a well developed market for village agricultural products. With a developed food industry and the presence of large amount of unused production capacity, there are possibilities for further market development. There is also excess capacity in local milk production, meat production, brewing, wine bottling and canning industries. Recent economic inactivity has resulted in low prices of agricultural production.

Foreign Investment

An increasing amount of foreign capital is being invested into the region. The Turkish company Phaph Metal recently invested 5 million Euros here. The Danish brewer Carlsberg is the main shareholder of Shumen's local Shumensko Brewery and has invested over 4 million Euros. The municipality has also received investment from petrol conglomerates Shell and OMV. More and more retail outlets are opening up in the area and the retail roster now includes Ausrtrian Billa, Technomarket and the German company HIT and Kaufland.

The Development of Tourism

Shumen's proactive Municipality is keen to further develop tourism in the region by promoting the areas rich cultural and historic heritage, places of interest and close proximity to the beach resorts. Shumen and the region have a great potential and many unexploited resources for the tourism development. This region has much to offer the sophisticated tourist with a penchant for eco and cultural tourism.

The Property Market

Property and land in this area is amongst the lowest in the country and the cost of living in the region is also low. Data from the National Bank and the National Statistics Institute show that the average price for property in the area is around 340 Euros per sq m. With the growth in foreign investment and the decrease in unemployment the rental market has been stimulated somewhat. Agricultural land in the area is amongst the lowest in the country with prices of around 900 Euros a hectare. There are plenty of old renovation projects to be had in this area and many come with large tracts of land. Areas around the historical sites are worth investing in; more developers are moving into the village of Madara to build small-scale complexes of around five to ten houses. Average property prices in the area are still very cheap from 19,000 Euros.

As Shumen continues to grow its reasons for growth will be due to its key location as a transportation crossroads and its proximity to roads, airports, river and sea ports as well as the overwhelming support for businesses from the trade-hungry municipality.