Property purchases for investment purposes still growing

Investment transactions on the property market in Bulgaria in 2016 were for 261 mln. Euros, according to data from the study of one of the largest international companies for services in real estate.
 
The largest transactions were the sale of Sofia Airport Center, the logistic base of Somalia and Commodity Bazaar "Iliyantsi" and their share is 36%.
 
In the second half most transactions are hotels (27%) who shifted from the first position those with office space. They did in the first half have occupied 50% of the total share, while in the second their percentage was 18%, equal to that of transactions in commercial areas.
 
Record the return of interest in the industrial and logistics properties whose contribution is expressed in 20%. In 2016, transactions with real estate generating income exceeds significantly (65%) of those with assets acquired for speculative purposes (19%) or for their own use (16%).
 
Market participants with leadership are Bulgarian buyers - 75 percent versus international.
 
There has been a steady increase in the proportion of investors in real estate in recent years from 65% in 2015 to 84% in 2016 at the expense of end-users.
 
Rates of return values ​​decreased from 2015 in office and commercial space of 8.75 percent, while industrial areas retain their levels - 11%. Expected investment deals with large-scale income generating quality assets, agreed in late 2016 and pending finalization in early 2017 to reduce these rates by another 0.5% to 1%.
 
It is expected that the positive market development to continue investment volume at the end of the year to exceed that of 2016
 
Rates of return will shrink. The number of real estate transactions in Central and Eastern Europe will increase because of increased funding from other sources. Asian and South African investors will increasingly enter the markets of Central and Eastern Europe who had been a priority for the German, British and American investors.
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