Sales of Investment Properties in Bulgaria Rise 49% in Jan-Aug
Tuesday, 10 September 2013
The volume of transactions in Bulgarian investment properties increased 49% to 54.2 million euro ($71.6 million) in the eight months through August, with further increases expected next year due to the high yields, a local real estate consultancy said in a report.
The Bulgarian Investment property market is stabilizing and will encourage investors to take more risks and to make more deals next year, according to Forton. High-class properties in Sofia are expected to generate yields of 9.5% in 2014 against 6.25% for Prague and Warsaw and 8.5% for Bucurest, according to estimates of real estate company Cushman & Wakefield, Forton’s partner for Bulgaria.
The highest investments are made in the hotel sector. The deals are not many, but are significant. The reason for the high interest in hotels is that newly constructed high-class hotels are rarity in Sofia.
Bulgarian investors take up 56% of the market share of investment property deals compared to 75% for the same period the previous year. Until 2008, foreign investors dominated the investment property market in Bulgaria but some of them had to back off due to the economic conditions in the last few years.