H1 | 2018
H1 2018 | България Инвестиционен пазар | Colliers International
MARKET OVERVIEW
1
BULGARIA
INVESTMENT
2
H1 2018 | Bulgaria Investment Market Overview | Colliers International
INVESTMENT SALES TRANSACTIONS VOLUME DISTRIBUTION BY CITY
1% PLEVEN 4% BURGAS
95% SOFIA
HIGHLIGHTS African and Polish investors are leading the flow of capital to Bulgaria.
The total value of completed investment deals in the first half of 2018 was EUR 351 mn. Just five of those transactions accounted for slightly above 80% of the total.
The volume of deals concerning incomegenerating properties considerably exceeded (73%) speculative (9%) and owner-occupied properties (18%).
65% of the investment volume involved office buildings, followed by retail properties (23%) and development land (6%).
Yields maintained their end-2017 levels.
The share of international buyers continued to prevail over locals. South
TOTAL SALES TRANSACTIONS VOLUME (MN EUR) 957
1000 900 800 700 600
565
500 400
351 234
205
210
262
H1 2018
2017
2016
2015
118
2013
2008
0
59 2012
18 2011
27
2010
100
2009
200
2014
300
TOTAL SALES TRANSACTIONS VOLUME BY SECTOR
65%
23% OFFICES
6% RETAIL
3% DEVELOPMENT LAND
3% HOTELS
INDUSTRIAL & LOGISTICS
3
ORIGIN OF INVESTMENTS (MN EUR) H1 2018 | Bulgaria Investment Market Overview | Colliers International
838 800 700 600 500
506
400 300
245
202
200 100
59
27
16
87
8 51
31
2012
2013
102
132
101 109
117
144
119
106
0 2008
2009
2010
2011
International buyers
2014
2015
2016
2017
H1 2018
Bulgarian buyers
TRANSACTIONS TYPE (MN EUR)
900 800 700 600 500
PRIME YIELDS
400 300 12%
200 100
11%
Income generating
Speculative
Owner-occupied
H1 2018
2017
2016
2015
2014
2013
2011
2012
2010
2009
2008
0
10%
10% 9%
8.25%
8%
7.25%
7% 6% 2008
2009
2010
Offices
2011
2012
Retail
2013
2014
2015
2016 2017
H1 2018
Industrial
FORECAST Office and retail are the segments likely to show high investment potential by the end of the year; transaction volume in 2018 is not expected to exceed the 2017 level, due to the scarcity of large assets for sale. Investment volumes registered in 2017 indicate improved market liquidity, making Bulgaria more attractive to new investors in 2018.
The available debt capital for real estate acquisitions will likely remain stable. Continuing strong tenant demand will likely determine a further expansion of the development pipeline and more property acquisitions.
FOR MORE INFORMATION
Georgi Kirov Director Investment Services +359 2 976 9 976 georgi.kirov@colliers.com
Adriana Toncheva Senior Market Researcher +359 2 976 9 976 adriana.toncheva@colliers.com
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Copyright Š 2018 Colliers International.
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