Published on 30 October 2023
THIRD SECTION
Applications nos. 4173/20 and 6186/20
NEVADA TOURS 2004 AD against Bulgaria
and BULGARIAN TOURIST COMPANY GLOBAL TOURS AD against Bulgaria
lodged on 11 January 2020 and 21 January 2020 respectively
communicated on 10 October 2023
SUBJECT MATTER OF THE CASE
The applications are of the type examined in Kostov and Others v. Bulgaria (nos. 66581/12 and 25054/15, 14 May 2020) and concern allegedly low amount of compensation following expropriation. Plots of land measuring 4,103 and 14,390 square metres owned by the applicant companies were expropriated in 2019 for public need, with a view to the construction of a road in the area of Burgas. The companies had been using the plots under lease agreements since 2007, and eventually purchased them in 2018 – at 88 Bulgarian levs (BGN), or 45 euros (EUR), per square metre in application no. 4173/20, and BGN 80 (EUR 41) per square metre in application no. 6186/20. At the time of expropriation, the applicant companies were offered BGN 8.35 (EUR 4.27) and BGN 8.74 (EUR 4.47) respectively per square metre, calculated on the basis of numerous previous transactions. In the ensuing judicial-review proceedings, the Burgas Administrative Court increased the compensation to BGN 16.57 (EUR 8.47) per square metre for both applicant companies (final judgments of 12 July 2019 and 22 July 2019 respectively). The compensation was recalculated considering three more comparable transactions, including the purchase of the plots at issue.
The applicant companies complain under Article 1 of Protocol No. 1 (relying in addition on Article 13) that the amount of the compensation awarded to them was considerably below the market value of the expropriated plots. They adduce data showing that the real market value could have been significantly higher: 1) when the appointed experts in the domestic proceedings were asked to calculate the market value on the basis of similar properties in close proximity to theirs only, the values indicated were between BGN 55 and BGN 57 per square metre (EUR 27-29); 2) the municipality valued agricultural lands situated close to the applicant companies’ at BGN 60 (EUR 30.68) per square metre in an administrative procedure concerning a change in that land’s status (Orders of April-May 2018), and 3) the applicant companies present expert reports commissioned by themselves in preparation of the transactions in 2018, indicating much higher value of the properties, namely BGN 129 (EUR 66) per square metre.
QUESTIONS TO THE PARTIES
Was the compensation awarded to the applicant companies reasonably related to the expropriated land’s value (see Kostov and Others v. Bulgaria, nos. 66581/12 and 25054/15, 14 May 2020)? Are the data submitted by the applicant companies sufficient to show that the market value of the plots could have been significantly higher?
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