Eurozone Entry: Implications for Bulgaria's Real Estate Sector
Amidst the backdrop of Bulgaria's dynamic real estate landscape, all eyes are on the potential impact of the country's imminent entry into the Eurozone
In the first half of 2019 there has been a reversal in the trends in the investment property market in Bulgaria. For the first time in two years, Bulgarian investors have taken the lead and contributed to the majority of transactions - 59%. Colliers' end-2018 projections for shrinking investment volumes came true. The total value of investment transactions by the middle of the year was just over EUR 167 million. One of the reasons for this is the lack of a new ready-made product.
Income-generating transactions are preferred (53%) over speculative ones (47%). Investors' radars are mainly construction plots (nearly 42% of all transactions) and office space (32%), followed by hotels (19%) and other types of space (8%). Return levels remain the same as in 2018 - for offices (8%), for retail space - 7.25% and 9.5% for industrial ones.
According to Colliers, at the end of 2019, the investment volume will continue to be lower than in the last two years, but will exceed the values registered annually in 2009-2016.
The segments with the highest investment potential are office and retail space, which shows sustainable development, high project occupancy and stable rental levels. Increased demand for purchase of plots will continue - a signal that the market is in a phase suitable for the development of new projects that can subsequently become an investment product.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
New data from the National Statistical Institute (NSI) sheds light on the housing landscape in Bulgaria, painting a picture of the majority of Bulgarians residing in older homes.
Bulgaria has witnessed a remarkable surge in home loans at the beginning of the year, with loans for households for the purchase of houses and apartments reaching a record high of BGN 20.52 billion by the end of February
The housing market in Bulgaria witnessed mixed trends in the fourth quarter of 2023, with overall prices experiencing a modest increase of 1.2%
Bulgaria witnessed a staggering surge in mortgage loans in 2023, totaling a monumental BGN 6.39 billion
Amidst the backdrop of Bulgaria's dynamic real estate landscape, all eyes are on the potential impact of the country's imminent entry into the Eurozone
This information was shared during the presentation of data on the current state of the market to journalists
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022