Enhancing competition in the commercial real estate

In 2011, growth will continue to offer office space in Sofia. Under construction at different stages are about 430 thousand square meters, of which 2011 is planned to be completed 187 thousand square meters Experts expect some projects to delay its entry into the market due to lack of tenants, which could reduce the volume of new space in 2011 to 150 thousand sq.m.

This includes several of the major qualitative and office projects in Sofia. They are characterized by better performance and increase competition in the market. Therefore, the pressure on rents will remain.

Interest in renting offices in new buildings is now visible and we expect it to be even bigger next year as new projects offer more amenities and higher quality at comparable rents.

Expectations for the investment market in 2011 are more optimistic on the background of the previous 2009 and 2010 By the end of this year is expected to finalize several deals that will act as a catalyst for investment and will trigger the interest of foreign investors. Anticipated levels of profitability for various segments are as follows: 8.75% for prime commercial schemes, 9% for high quality office projects in the capital and about 12% of logistics projects.

The Global Property Guide revealed that last year, the value of property in Bulgaria increased at a higher rate than in any other country.