Bulgaria has achieved the largest annual growth in real estate investment in 2017 among 60 countries included in the Global Investment Atlas 2018 report by Cushman & Wakefield. Investment transactions in Bulgaria increased by 153% compared to 2016 and reached 856 million dollars, according to the company's data.
Among other countries, Vietnam (94%), Indonesia (87%), Argentina (86%), Malaysia (79%), Brazil (76%) and Turkey (75%) are among the most prominent in investment real estate deals.
The largest decline was recorded in Colombia (-98%), Latvia (-75%) and Greece (-67%).
At the same time, Bulgaria ranks 32nd among 40 countries in the largest volume of cross-border capital in 2017, lagging behind the Czech Republic and Romania, but ahead Croatia, Slovakia and Russia. The top three places occupy the United States, Britain and Germany.
We remind you that last year was marked by several big business deals and the entry of South African funds into the market in Bulgaria. NEPI Rockastle bought Serdika Center on Sitnyakovo Blvd for just over 200m euros. At the end of last year, the fund acquired the Paradise Center Mall on Cherni Vrah Blvd, after a record deal for the Bulgarian real estate market for nearly EUR 253 million. Another South African fund, Hyprop Investments, acquired The Mall for 176 million euros, and another fund, MAS Real Estate, bought the Galleria shopping centers in Stara Zagora and Burgas.
2017 was record for investment in real estate, exceeding the peak of 2015. Investments in US dollars rose 13.2% and prime rents rose 1.7%, according to C & W .
London remains the most sought-after destination for international capital, as concerns about Brexit have been mitigated by the decline in the value of the pound and the accessibility of the city has been a great temptation for foreign investors.
At the same time Madrid jumps 45 places to second place ahead of Amsterdam, and last year's silver medalist New York remains in sixth place.
In the top 25 of the most wanted cities, foreign real estate investors dominate European and Asian destinations, with German cities being particularly well represented. The hegemony of the top 25 cities, however, is declining as their market share falls below 50% for the first time in history. At the same time, the number of cities of the radar of foreign investors increases by 4.5%.
Investment volumes in Europe grew by 8.3% on an annual basis, with Central and Eastern European countries having a major role to play, with the number of investment real estate transactions rising by 19.2%. Last year, Asian investments in Europe, Africa and the Middle East rose by 95%, according to C & W data.
Global asset yields declined by an average of 12 basis points on average, according to the company's report. In Bulgaria, the yield of office space has dropped to 7.75%, retail space - up to 8.25%, and industrial areas - to 9%.
C & W expects this year's property investment in Central and Eastern Europe to continue to grow thanks to the improved economies of the countries in the region to reach $ 25 billion from $ 14.5 billion last year.
Yield is likely to shrink by another 45 basis points from 26 basis points last year.
At the same time, according to the company's forecast, rents will rise by 2.8% after falling 2.7% last year, which will shrink the market.