Member updates

2023: Local investors will dominate the commercial property market

The Bulgarian commercial property market in 2023 will maintain activity around last year’s levels. Main buyers are again expected to be local investors with sufficient funds or being able to obtain favorable credit terms. This is what the consultancy company Cushman & Wakefield Forton is forecasting for the period.

“The last year was challenging in terms of the investment market. The war in Ukraine, the high dynamics in the prices of building materials and energy resources have created a sense of general uncertainty, which has been accompanied by expectations of rising interest rates. Given the ongoing market trends, we expect domestic investors to remain the main property market driver in 2023. There will be increased interest in distressed assets. Commercial properties in attractive locations with stable yields will continue to be appreciated by investors”, said Yavor Kostov, Managing Partner at Cushman & Wakefield Forton.

C&W Forton estimates the total volume of commercial property transactions in 2022 to be just over EUR 270 million. Transactions with traditional market assets – office and retail space – are predominant, while there is also a stir in the industrial property segment.

Rents in all segments of the commercial real estate market continue to grow smoothly – a trend that has been observed since the end of 2022 and reflects high levels of inflation. Increasing interest in leasing or project development is being seen in flexible office space and retail parks, notes Cushman & Wakefield Forton.

Read the full report here.
Made on