Bulgaria Real Estate Report 2016 - Business Monitor International - Industry Reports

Bulgaria Real Estate Report 2016

Bulgaria Real Estate Report 2016 - Business Monitor International - Industry Reports
Bulgaria Real Estate Report 2016
Published Jan 23, 2016
57 pages — Published Jan 23, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

BMI View: We expect occupier demand and rental values to improve in all three sub-markets of the commercial real estate sector that we cover, in line with economic growth. New development is taking place in the office sub-sector, which should increase the amount of new supply and offer greater investment grade assets to investors. ...Rents are expected to continue on an upward trend in ----. As the capital city, Sofia is likely to benefit most from the growth in the services sector and hence occupier demand, but the prospects are also positive for key regional centres, and we are seeing higher levels of absorption in cities such as Varna and Bourgas as companies relocate from Sofia, enticed by available space and lower rents. The outlook is also positive for retail rents, which are expect to continue rising in ---- and ---- on the back of rising household spending, strengthening consumer confidence and higher purchasing power. ...There is evidence of more speculative development starting, but these will take time to reach the market. Moreover, there is a strong likelihood that a significant proportion of such space will be pre-leased, leaving supply tight.

...Net yields are higher in Bulgaria than some of the other Eastern European countries, which is an advantage for the real estate sector in terms of attracting investors looking for higher yields. The office sub-sector is likely to fare better than retail and industrial in respect of demand from overseas investors given that new development will be bringing a fresh amount of high quality assets to the market. ...The office sub-sector is likely to fare better than retail and industrial in respect of demand from overseas investors given that new development will be bringing a fresh amount of high quality assets to the market. The retail investment outlook is less certain and we expect transactions to be dominated by local players interested in small lot sizes, while turnover in the industrial sub-sector is likely to remain low until such time as speculative construction delivers more high quality assets to the market. In the short term, therefore, we expect land rather than income producing assets to be the target for acquisition by investors active in industrial real estate. ...The retail investment outlook is less certain and we expect transactions to be dominated by local players interested in small lot sizes, while turnover in the industrial sub-sector is likely to remain low until such time as speculative construction delivers more high quality assets to the market. In the short term, therefore, we expect land rather than income producing assets to be the target for acquisition by investors active in industrial real estate.

...Banking sector fragility due to the large proportion of non-performing loans could threaten financial stability. Adverse demographic trends will weigh on Bulgaria s long-term economic growth. ...

  
Source:
Document ID
2040-7726
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Bulgaria Real Estate Report 2016" Jan 23, 2016. Alacra Store. Dec 04, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Bulgaria-Real-Estate-Report-2016-2026-845>
  
APA:
Business Monitor International - Industry Reports. (2016). Bulgaria Real Estate Report 2016 Jan 23, 2016. New York, NY: Alacra Store. Retrieved Dec 04, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Bulgaria-Real-Estate-Report-2016-2026-845>
  
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