Deals in commercial properties up 50% worldwide; in Bulgaria supply dominates

The real estate market at present

Deals in commercial properties worldwide increased by 50% in 2010, compared to data for 2009, according to an analysis of consultants Jones Lang LaSalle, quoted by PropertyWeek. The total value of deals was estimated at about $316 bn, picking up from the rock bottom of $209 bn reached in 2009. In Bulgaria, supply dominated in the commercial properties sector, commented the consulting company Forton. The occupancy rate rose by 40% in the segment of industrial areas last year and the activity of tenants at the end of 2010 suggests that the sector will develop further.

According to Jones Lang LaSalle, growth in investment activity as a whole can be observed in the world in the last quarter. Investments exceeded $100 bn in this period alone. Such levels have been reached for the first time since the beginning of the global crisis in 2007, experts said. The greatest increase was registered in Europe, North America and South America since the decline in 2008 and 2009 on these continents was also the most significant. In Europe, the Middle East and Africa, the volume of deals rose by almost 40%, compared to 2009, totaling $136 bn.

On the Bulgarian market, traders have oriented themselves to the new malls since the autumn but the aggregate volume of closed deals is still below the expectations of landlords, Forton pointed out. In 2011, most of the international tenants will remain active but some of them will prefer smaller stores. New international brands are to step on the Bulgarian market as well.

On the market of office premises the available space in Sofia will continue to increase. Renting an office will remain the preferred option to the purchase of office space, Forton projected. “New buildings are already available on the market and the share of unoccupied offices has increased, reaching 25%,” Anton Slavchev, manager of offices and industrial areas at Colliers, told Klassa. “Some 77,000 sq m of office space were rented throughout 2009 and 111,000 sq m - in 2010. The increase is clearly visible. Prices decreased due to the increased supply, leading to a revival in the sector. We expect the number of transactions to go up this year,” he added. 

 

Text and photo: klassa.bg

 

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(04.02.2011)