Investors shy away from real estate projects
10 November 2008
Investors have slowed down or halted industrial and logistics centre projects due to administrative hurdles and a declining global financial market, said Colliers International in a research of property consultants. In the first half, only 23,000 sq m of speculative logistics areas have entered the Sofia market, said Colliers.
However, Simeon Mitev, manager with real estate agency RE/MAX Chance Group pointed out that demand for modern industrial space has been significantly raised, as construction in villages, small towns and old urban zones is also booming.
Moreover, the report said that the warehouse market is dominated by freight-forwarding companies and FMCG retailers, who seek to rent some 2,000 sq m at good infrastructure.
Raiffeisen Real Estate sees rental prices of renovated storage space falling if new projects enter the market.
International Property News
BBC Latest News