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Commercial Property Market Success In Bulgaria
Just when all things European property related seemed to be nosediving or at least stagnating, (well, if you believe the media hype they are anyway), there’s some seriously positive information coming from the commercial property market in Bulgaria.New project starts are continuing to to happen, industrial and logistic sector prices are climbing in Sofia, and even the Russian’s are investing heavily in commercial property projects in Bulgaria. In this article we look at commercial property market success in Bulgaria and how you can possibly get in on the wave of positive real estate appreciation.
The latest news from the ‘Emerging Trends in European Real Estate 2008’ report by PricewaterhouseCoopers and the Urban Land Institute also supports the above information – in the report they cite Eastern European nations such as Bulgaria as good bets for office and retail commercial property throughout 2008 – and above all other forms of property investment, they fall heavily in favour of commercial property investment in 2008 rather than residential.
The Russians seem to be in agreement with the findings of the report, they have just committed to a thirty million dollar real estate spend in Golden Sands. The money is being internationally financed and the company behind the venture is Etalon-Len-Spets SMU who have previously only constructed and invested in Russia. This is being seen as a real confidence booster to the Bulgarian property market seeing as Etalon-Len-Spets SMU are using the nation as the initial platform for their proposed international expansion plans.
At the Balkan Property Exhibition (Balpex) it’s believed a whole series of commercial projects will be unveiled in Bulgaria. The exhibition is taking place at the Inter Expo Centre in Sofia, and among those projects being unveiled are eight mall developments proving the findings of the ‘Emerging Trends in European Real Estate 2008’ report that retail is the main area for potential success from commercial property in Eastern Europe this coming year.
The Prime Property BG real estate investment trust in Bulgaria is getting in on the exploding commercial market; the REIT is ploughing 64 million euros into a business centre in the Trakiya district of Plovdiv which will comprise office and retail space. A spokesperson for the REIT stated that they expect completion of the centre to come in 2011 and yields to reach 30%. Great news for those who invest in property in Bulgaria through the REIT.
Finally, the news that industrial and logistic commercial premises in Sofia enjoyed a 9% expansion in terms of rental prices last year means that now the Bulgarian capital city is among the fastest growing for commercial property prices in Europe. Lack of supply in certain key segments of the commercial market is really driving the rental prices and it means that Bulgaria is looking a promising prospect for property success in 2008.