Recovery of Bulgaria's property sector

Rents and property capital values in Bulgaria and Hungary are expected to rise over the next 12 months, according to the London-based Royal Institution of Chartered Surveyors (RICS). “In Bulgaria, a particular increase is expected in the office market.” RICS said that most markets in Central and Eastern Europe “slowly but steadily appear to be emerging from the woods.” Macroeconomic challenges continue to affect real estate, but expectations are improving, with longer-term prospects for capital values. The survey confirms that “the best prospects in property markets are in Eastern and Central Europe.” Demand for property rose in April–June 2014 in Bulgaria, Hungary and Romania, particularly in the Bulgarian office sector and the Hungarian office and retail sectors. In Bulgaria, RICS said investor interest was increasing, supported by “prospects for demand and rental growth across all three commercial property segments.” According to Lila Pateraki, Business Development Director at Zeus Capital Managers, an international private-equity investment management company, Bulgaria, and Sofia in particular, offers some good-quality investments that can generate decent returns and therefore attract investors. The RICS commercial property survey provides a quarterly guide to trends in property investment and commercial rental markets. RICS is a leading global professional organisation for qualifications and standards in land, property and construction.