Bulgaria leads in rise in commercial property sales in EU in 2014

Bulgaria posted the biggest rise in sales of commercial real estate in the EU last year, a new study has shown.

According to the latest edition of Cushman & Wakefield's International Investment Atlas, commercial properties worth USD 286 M (EUR 254 M) were sold in Bulgaria last year, an increase of 226% over 2013.

The statistics cover sales of offices, hotels, industrial properties, retail centres and land designated for construction purposes.

The annual study covering property markets in 62 countries in the world has been presented in Sofia by  Forton International, the strategic partner of Cushman & Wakefield for Bulgaria and Macedonia.

The recovery of the commercial property market in Bulgaria had accelerated in 2014 led by a rise in demand and occupancy rate in the segments of office and industrial properties, Forton CEO Michaela Lashova commented.

This in turn led to a rise in investors’ interest in launching new projects as well as acquiring existing commercial properties that operate and generate revenues, she added.

Investment activity in the commercial property sector in Bulgaria is expected to remain high this year, depending mainly on the economic growth in the Eurozone which is the country’s biggest trade partner.

Domestic investors will remain the key driver of sales growth in Bulgaria's commercial property sector, while the share of foreign capital will increase mainly in transactions for buying land for construction purposes and launching new projects or restarting frozen developments.