Demand for high-end bulgarian property on the up

Demand for high-end property in Bulgaria is on the up, according to Colliers.

The agent's latest report reveals that absorption of high-quality projects increased in 2013, with demand in the second half of the year primarily focused on modern space. In the capital of Sofia, office vacancy rates dropped to 12 per cent, notes Colliers, while take-up jumped 44 per cent over the previous halfs.

Latest statistics show that class A office investors prefer locations at the periphery of Sofia - 67 per cent of the modern office projects are situated in this part of the capital.

"Due to the active absorption of class A offices and in view of the fact that no new projects of this type have been launched during the reported period, vacancy rates are expected to decrease significantly towards the end of the year," predicts the report. "Furthermore a shortage of contemporary office space is possible in the short term."

Modern properties, or compounds, are increasingly the preferred type for mid- and upper-market buyers, with internal infrastructure, parking spaces, management of common areas and overall environment all influencing their decisions. 9 per cent of all housing units in compounds in Sofia have been absorbed in the first six months of 2013.