Bulgaria’s Rents, Capital Values to Rise in Next 12 Months, RICS Says
Rents and capital values in Bulgaria and Hungary are expected to rise over
the next 12 months, the London-headquartered Royal Institution of Chartered
Surveyors (RICS) has said.
“In Bulgaria a particularly firm increase is expected in the office market,”
London-headquartered RICS revealed.
The RICS said in its Commercial Property Monitor for Q2 2014 that most
markets in Central and Eastern Europe “slowly but steadily seem to be getting
out of the woods.”
Macroeconomic challenges continue to impact real estate sentiment, but
expectations are improving with longer term outlook for capital values, the RICS
said in its survey "Better perspectives in Central and Eastern European real
“In Bulgaria, the government’s resignation and a swift outbreak of
vulnerability in the banking sector can cause some challenges and jeopardize a
brighter outlook, while the other three countries are facing record low
inflation and interest rates,” according to the survey that looks at the markets
of Bulgaria, Czech Republic, Hungary and Romania.
RICS highlighted that occupier demand had risen in April-June 2014 in
Bulgaria, Hungary and Romania, particularly in the office sector in Bulgaria and
in the office and retail sectors in Hungary.
In Bulgaria, RICS said, investor interest is on the rise backed by “brighter
outlook for occupier demand and rental growth across all three commercial real
“The fundamentals further improved in the office market with positive
spillovers seen beyond the prime segment. And in industrial and logistics real
estate the shortage of supply is putting upward pressure on rents whereas demand
According to Lila Pateraki, Director of Business Development at Zeus Capital
Managers, an international privately held investment management company,
“although the number of investments one could make in Bulgaria, and more
precisely in Sofia, is rather limited, there are some good quality investments
that can generate decent returns and therefore be of interest to the
RICS commercial property survey is a quarterly guide to the trends in the
commercial property investment and occupier markets. RICS is the world’s leading
professional body for qualifications and standards in land, property and