Business Property Deals Amount to EUR 225 M for January-September 2016

Real estate deals with business property in Bulgaria, signed over the period January-September 2016, amounted to EUR 225 M, showed a survey carried out by consultancy company Forton and unlisted company Cushman&Wakefield.

Nearly 70% of the contracts were signed for profitable assets - hotels, office buildings, commercial and industrial space, the biggest share being accounted for by hotel acquisitions.

According to the survey, the business real estate market has entered a new phase, moving from stabilisation to growth.

Office space rent prices maintain a level of EUR 13/sq m, while the rate of return is 8%. Rent office space in the capital varies between 126,000 and 154,000 sq m, with a 60% share accounted for by the IT and outsourcing sectors.

With respect to commercial centres in Bulgaria, a restructuring tendency of weak-performing malls has been recorded.

In 2016, rent prices in commercial centres went up from EUR 27/sq m to EUR 28/sq m. In spite of this, the rate of return decreased by 1%, compared to 2015, reaching 8%.

Data showed that, at present, commercial space in malls covers 718,000 sq m. Growing demand for and increased rent prices have been reported regarding industrial space in Bulgaria, since a mere 15% of total supply on the market is allocated for this purpose.