261 mln. еuros were invested in 2016 in investment properties in Bulgaria
It is expected that volumes in 2017 will be higher than the previous year.
The market for investment properties in Bulgaria continues to evolve in a positive direction show the latest surveys. The total value of transactions in the country exceeds the levels of 2015 and reached 261 mln. euros for 2016. The largest transactions were the sale of Sofia Airport Center, the logistic base of Somalia and Iliyantsi Bazaar and their share is 36%.
In the second half of the year most transactions were hotels (27%) who shifted from the first position deals with office space. In the first half of the year commercial properties occupied 50% of the total share, while in the second their percentage was 18%, equal to that of transactions in commercial properties.
The company reports and the return of interest in the industrial and logistics properties whose share is about 20%. In 2016, transactions with real estate generating income exceeds significantly (65%) of those with assets acquired for speculative purposes (19%) or for their own use (16%).
The most active market participants are Bulgarian buyers - 75 percent versus international. There has been a steady increase in the proportion of investors in real estate in recent years from 65% in 2015 to 84% in 2016 at the expense of the end-users.
In offices and commercial properties levels of return values decreased from 2015 by 8.75%, while industrial areas retain their levels - 11%. It is expected that the investment deals with large-scale income generating quality assets, agreed in late 2016 and pending finalization in early 2017 to reduce these rates by another 0.5% to 1%.
The trend of positive market development will continue and the investment volume at the end of the year will exceed that of 2016 forecast the experts. But rates of return income will shrink.
The number of real estate transactions in Central and Eastern Europe will increase because of increased funding from other sources. Asian and South African investors will increasingly enter the CEE markets, which had previously been a priority for the German, British and American investors.