Nice Places in Bulgaria. Bulgaria Guide.

103-Bulgaria Property Development Issues
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A booming economy has driven the absorption of 200,000 sq m of office space in 2007. A couple of years ago there were no quality projects and even now some of them have simply vague resemblances to class A offices. A year ago most investors tended to be aggressive and use up to 75 per cent leverage ratios. As of the end of 2008 and the beginning of 2009, the first new projects are expected to be delivered and to change the ratio between demand and supply. Bulgaria Property poor project will sufferThe lack of quality space forced some foreign companies to delay their plans to enter BulgariaOffice market in Bulgaria is still far from being mature although the number of quality projects is growing. But nowadays all of them seem to be more cautious. Financial concerns, prompted by the credit crunch, will also have an impact. Foreign companies have even postponed their plans to enter Bulgaria as they have actually has not found place to establish an office. High prices of land, seen by all Bulgarian developers, are just another setback for the sector’s development. However, almost every single offer on the market lacks certain features that will qualify it as class A - whether it comes to suspended ceilings, raised floors, lighted areas or the needed car parking spaces. However, there are still problems remaining regarding the office market development in Sofia and solutions are unlikely to be found soon. More opportunistic and speculative players will gradually start to fall off the scene. Problems with infrastructure equally apply to existing buildings and future projects. Still, these are marketable as demand significantly exceeds supply. The first foreign investor to come to Bulgaria found there was actually nothing to invest in. The term class A office is still pretty much unclear. They had to either start developing their own projects or to try to share the risks with Bulgarian development companies, the Executive Director of Forton International real estate consultants, Sergey Koynov, commented.This scene has recently started to change. We are now witnessing a reverse effect with 80 per cent of investments coming from equity and just about 20 per cent from credits.