LM Legal Services Blog

Office and retail rents fall and will keep falling in the next two years according to Raiffeisen Property. In short term the office space on offer will outnumber the demand. The same tendency is valid for retail space, as only in the next 2.5 years it is expected that the retail space will increase eight times.

Meanwhile the interest of investors is expected to decrease due to the world crisis which has hit the property market. As result the secondary market will become rather active.  Those who bought property as investment will rush to sell it. The demand will be focused mainly in the cities. The prices of high quality residential property will rise in expensive city areas.

In the mountain and sea resorts there are too many properties on offer. In the end of 2007 there were more than 80 000 newly built properties there, while currently there is demand for about 65% of them.

Regent’s Property Advisors, part of AG Capital presented their project Sun City Centre – shopping mall on 15 floors with total area of 41 516 square metres, 7100 square metres of which will be office space. The retail area will be only rented and already more than 30% have been let. The investment exceeds 30 million Euros and it is expected that it will create 580 jobs. Sun City Centre will open in 2010 while AG Capital plan to build a second shopping mall in the outskirts of Burgas. It is believed that the two projects will influence the commercial property market in the city, where at the moment shops rent from 60 to 100 Euros per square metre.