Bulgaria's property investment volume shrinks 25% in 2023 - Colliers

Over 60% of the volume was generated in the second half of the year, with total transactions evenly split between income-generating and speculative properties last year, Colliers Bulgaria, part of US-based professional services and investment management company Colliers International, said in a report.

Local investors contributed 86% of all investment transactions last year, marking their highest share in five years.

Office spaces made up the largest portion of overall investment volume, at 42%. They were followed by hotels with 17%, retail spaces with 13%, development land with 12%, mixed-use buildings with 10% and industrial and residential areas with 5% and 1%, respectively.

Prime yields for office and retail spaces were unchanged at 7.75%, while demand for logistics and industrial spaces continued despite sellers' reluctance due to high construction costs, resulting in prime yields of 7.50% in the segment.

While investment volume is declining in Western Europe, Bulgaria's expected adoption of the euro and its accession to the Schengen area could boost foreign investor interest in the local market. Investor interest will further be supported by high employment levels and moderate rental rates, even in the event of a downturn in economic activity, Colliers noted.

($ = 0.9252 euro)