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The
prices of recently built apartments are increasing more intensively because
of the higher price of land and building materials. Office space deals are not
registering significant growth. Office real estate deals are mainly rental
contracts.
The REMI index was introduced in Bulgaria in September 2002 by the
National Real Estate Association (NREA) with the support of the American
Chamber of Commerce in Bulgaria.
The boom in the construction of apartment buildings which began about two
years ago will persist until the country’s EU accession, fuelled by easy
access to bank loans and expectations that housing units will continue to
appreciate. Another factor, except for the compensatory notes, feeding the
market are the cash inflows from Bulgarians living and working abroad that
are being spent on real estate in Bulgaria.
Among the revelations made by property brokers in the past month was that
developing Bulgarian and foreign companies seek to buy or rent buildings
offering at the same time storage, commercial and office space.
This latest trend on the real estate market in Bulgaria has already been followed by
the cosmetic maker Oriflame, stationery supplier Office One Superstore and
Metro Cash & Carry.
Currently, the storage facilities and the headquarters of international
companies operating in Bulgaria are dislocated, which creates a
major inconvenience and multifunctional buildings are most in demand.
Investors either hire contractors to build such multifunctional buildings
entirely for the company needs, or rent similar buildings on a long-term
basis, real estate experts said.
Apart from the strong demand in multifunctional buildings there is also a
strong investors’ interest in buying and renting storage facilities. The
average selling price of storage facilities in Sofia was 332 euro for a square metre
in January 2005 against 295 euro in June 2004.
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