"Bulgaria Real Estate Report Q2 2013" is now available at Fast Market Research

From: Fast Market Research, Inc.
Published: Wed Apr 17 2013


The Bulgaria Real Estate report examines the commercial office, retail, industrial and construction sectors throughout the country in the context of continuing strife in the eurozone and its neighbouring countries. With a focus on the country's principal cities including Sofia, Varna and Burgas, the report covers the rental market performance in terms of rates and yields. It also examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of a stalled construction pipeline on a market that has suffered considerable rental weakness.

Although 2011 saw some glimmers of hope, these have yet failed to materialise going into 2013. Our fullyear 2012 data for the commercial real estate sector has been less-than-encouraging, with the office and industrial sectors in particular still suffering from oppressive market dynamics. With the economy still fragile, demand lacklustre and political stability in question, the news for the sector is almost exclusively gloom and doom until the region's economy is back on track. Nevertheless, there are opportunities in the tourism and retail sectors.

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Full Report Details at
- http://www.fastmr.com/prod/554010_bulgaria_real_estate_report_q2_2013.aspx?afid=301
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Key Points:

* The Bulgarian economy slowed in H212 as demand from the eurozone weakened, and we estimate fullyear real GDP growth of 0.1%. Conversely, we expect a recovery in the bloc, coupled with some fiscal loosening ahead of parliamentary elections, with GDP growth of 1.4% forecast for 2013.
* A disorderly default in Greece would wreak economic havoc on Bulgaria, whose economy is highly exposed to the beleaguered Hellenic nation via trade, investment and banking sector avenues. In the event of a deterioration in the eurozone sovereign debt crisis, we would be forced to revisit our forecasts for Bulgaria across the board.
* Bulgaria's construction and infrastructure sector still faces difficulties, although some indicators appear to suggest that the sector could be turning a corner. Data has identified road building as a significant growth area, with projects worth EUR800mn (US$986mn) due to be completed by end-2013. More than EUR4bn (US$4.93bn) will be invested in road construction between 2014 and 2020. The amount of investment in Bulgaria's railway infrastructure remains comparatively low, despite there having been an increase in spending since 2010.

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