Business properties
The transactions with business properties in Bulgaria are gaining pace. There is an increasing demand for business properties from both foreign and local investors regardless of the bigger prices of such properties compared to all other real estate prices. The main reason behind is that business properties provide good opportunities to develop a business or to let. Business properties fall within several categories and they include land plots for the construction of houses and villas, large agricultural parcels, and entire residential or office buildings, and business premises.
Recently some experts from the West came up with the idea about the declining returns on investments in business properties, and the emerging of a new type of players on this market, who combine contractors and investors. The typical investors, who normally buy the finished buildings to let, gradually lose ground to new companies, which both build and manage their own buildings. In this way, they can combine the margin profits from construction with the rental profits. As a result, within only two or three years they are able to generate much bigger profits to compensate decreasing profits from investments in rural properties. According to the statistics from the Investment Bank, the annual return from office and commercial premises in Bulgaria is 9.5%, and only currently the yield from industrial properties is 11%, while expectations for 2009 are for 9.5%
The contractor/investor combination can be carried out by large real estate companies for special investments and is mostly aimed at receiving profits from all stages of the investment process, and it should not be considered a reaction against declining return. The annual profit from the construction is about 25-30% and from the management it is about 10-11%, so the profitability from such a project should be somewhere in between. Risks, however, are also bigger to compensate for the high yields. In Bulgaria there are not more than one or two joint ventures available between a building contractor and an investor. In short terms, such “hybrids” are likely to be working since they provide for lucrative projects giving good investment opportunities. According to statistics, 58% of assets are still managed by investment companies, but their percentage is falling at the expense of “hybrid” companies which are gathering speed, and they account for 24%.
Thanks to preferences granted by law to them, large investment companies are already entering the Bulgarian real estate market. All those figures considered, they point to a good rate of profitability and low risk compared with business properties in locations out of Bulgaria. In the following years, business properties are sure to generate profits for their owners, particularly from 1 January 2007 Bulgaria’s accession to the European Union.
Here are more details on the various kinds of business properties in Bulgaria we offer.
A. Land plots can be of various types, characteristics and category, and purpose of use. To make things easy, we put land plots into three categories:
-Land plots for construction of houses and villas;
-Industrial land plots;
-Agricultural land plots.
B. Buildings for investors having a serious business in Bulgaria. Buildings are subdivided into four categories:
-Industrial buildings;
-Office buildings;
-Residential buildings;
-Hotels.
C. Premises which are intended for business account for the largest data base with the most features and purposes of use and provide a diversity of opportunities to suit every wish and every budget.
Different businesses need to comply with different regulations, norms, and restrictions, so it is advisable for the prospect investors to clarify for themselves their intended kind of business first, and then they can start looking for suitable premises. And here is where our specialists come in to be of tremendous help to prospect clients.
If you are looking to invest into business premises, you should be aware that returns on such premises are quicker, but their maintenance is costlier as well. Future tenants expect from their landlords to provide premises in a good condition. We recognize the following types of premises:
-Offices;
-Shops;
-Surgeries (Offices)
-Cafes;
-Restaurants and bars;
-Warehouses.
Recently some experts from the West came up with the idea about the declining returns on investments in business properties, and the emerging of a new type of players on this market, who combine contractors and investors. The typical investors, who normally buy the finished buildings to let, gradually lose ground to new companies, which both build and manage their own buildings. In this way, they can combine the margin profits from construction with the rental profits. As a result, within only two or three years they are able to generate much bigger profits to compensate decreasing profits from investments in rural properties. According to the statistics from the Investment Bank, the annual return from office and commercial premises in Bulgaria is 9.5%, and only currently the yield from industrial properties is 11%, while expectations for 2009 are for 9.5%
The contractor/investor combination can be carried out by large real estate companies for special investments and is mostly aimed at receiving profits from all stages of the investment process, and it should not be considered a reaction against declining return. The annual profit from the construction is about 25-30% and from the management it is about 10-11%, so the profitability from such a project should be somewhere in between. Risks, however, are also bigger to compensate for the high yields. In Bulgaria there are not more than one or two joint ventures available between a building contractor and an investor. In short terms, such “hybrids” are likely to be working since they provide for lucrative projects giving good investment opportunities. According to statistics, 58% of assets are still managed by investment companies, but their percentage is falling at the expense of “hybrid” companies which are gathering speed, and they account for 24%.
Thanks to preferences granted by law to them, large investment companies are already entering the Bulgarian real estate market. All those figures considered, they point to a good rate of profitability and low risk compared with business properties in locations out of Bulgaria. In the following years, business properties are sure to generate profits for their owners, particularly from 1 January 2007 Bulgaria’s accession to the European Union.
Here are more details on the various kinds of business properties in Bulgaria we offer.
A. Land plots can be of various types, characteristics and category, and purpose of use. To make things easy, we put land plots into three categories:
-Land plots for construction of houses and villas;
-Industrial land plots;
-Agricultural land plots.
B. Buildings for investors having a serious business in Bulgaria. Buildings are subdivided into four categories:
-Industrial buildings;
-Office buildings;
-Residential buildings;
-Hotels.
C. Premises which are intended for business account for the largest data base with the most features and purposes of use and provide a diversity of opportunities to suit every wish and every budget.
Different businesses need to comply with different regulations, norms, and restrictions, so it is advisable for the prospect investors to clarify for themselves their intended kind of business first, and then they can start looking for suitable premises. And here is where our specialists come in to be of tremendous help to prospect clients.
If you are looking to invest into business premises, you should be aware that returns on such premises are quicker, but their maintenance is costlier as well. Future tenants expect from their landlords to provide premises in a good condition. We recognize the following types of premises:
-Offices;
-Shops;
-Surgeries (Offices)
-Cafes;
-Restaurants and bars;
-Warehouses.
Land plots for construction of houses and villas
They are the first group of land plots (SEE how to build a new house). Such land plots have been in great demand over the last years from both Bulgarian and foreign investors to construct big and completely... Aprenda más
They are the first group of land plots (SEE how to build a new house). Such land plots have been in great demand over the last years from both Bulgarian and foreign investors to construct big and completely... Aprenda más
Industrial land plots
These are land plots in or close to the industrial zones of big towns. There are restrictions related to height of building and type and quality of building materials. Aprenda más
These are land plots in or close to the industrial zones of big towns. There are restrictions related to height of building and type and quality of building materials. Aprenda más
Agricultural land plots
These are land plots intended for farm land and have been in great demand lately because of their low price and the excellent opportunities they provide to grow plants like vineyards, fruit trees, grain crops, herbs... Aprenda más
These are land plots intended for farm land and have been in great demand lately because of their low price and the excellent opportunities they provide to grow plants like vineyards, fruit trees, grain crops, herbs... Aprenda más
Industrial buildings
Such properties have one thing in common: they are a very lucrative investment and nearly always go with adjacent land. You can acquire the buildings together with the land... Aprenda más
Such properties have one thing in common: they are a very lucrative investment and nearly always go with adjacent land. You can acquire the buildings together with the land... Aprenda más
Office buildings
We have the best offers for you for office buildings in big towns where there is a steady demand for such properties, so their letting is easy and profitable. Although their prices are higher, office buildings... Aprenda más
We have the best offers for you for office buildings in big towns where there is a steady demand for such properties, so their letting is easy and profitable. Although their prices are higher, office buildings... Aprenda más
Residential buildings
These are usually hotel complexes or complexes having the status of residential buildings suited to meet the requirements for particular standards and category of furnishings, service, and accommodation. Aprenda más
These are usually hotel complexes or complexes having the status of residential buildings suited to meet the requirements for particular standards and category of furnishings, service, and accommodation. Aprenda más
Hotels
Hotel buildings are designed and built according to government regulations and specific category to suit intended guest profile and room rates. Other factors which influence the category... Aprenda más
Hotel buildings are designed and built according to government regulations and specific category to suit intended guest profile and room rates. Other factors which influence the category... Aprenda más
Offices
Regardless of their location, area, price and quality, the demand for offices is steady and permanent. Offices have been purpose-built, but it is possible for certain residential properties to be turned into offices. Aprenda más
Regardless of their location, area, price and quality, the demand for offices is steady and permanent. Offices have been purpose-built, but it is possible for certain residential properties to be turned into offices. Aprenda más
Shops
Our company has been successfully selling and managing shops since the very beginning and we have a team of enthusiastic and highly experienced experts to assist potential investors. Aprenda más
Our company has been successfully selling and managing shops since the very beginning and we have a team of enthusiastic and highly experienced experts to assist potential investors. Aprenda más
Surgeries
They are a very specific type of property and involve specialization from their initial design to building and furnishing. They are often offered for sale completely furnished according to their Aprenda más
They are a very specific type of property and involve specialization from their initial design to building and furnishing. They are often offered for sale completely furnished according to their Aprenda más
Cafes
The starting, development, selling and management of restaurants, night clubs, bars and cafes is a serious business and it requires both adequate professional experience and in-depth knowledge of all... Aprenda más
The starting, development, selling and management of restaurants, night clubs, bars and cafes is a serious business and it requires both adequate professional experience and in-depth knowledge of all... Aprenda más
Restaurants and bars
Both local and foreign investors constantly look to buy restaurants and bars. There is one thing to remember about such properties: it is most common for restaurants in big towns to have been built... Aprenda más
Both local and foreign investors constantly look to buy restaurants and bars. There is one thing to remember about such properties: it is most common for restaurants in big towns to have been built... Aprenda más
Warehouses
Warehouses are usually found outside towns or in industrial zones, and as a rule, clients for such properties are serious companies acquiring such a property for their own needs, so a reselling can hardly ever be expected. Aprenda más
Warehouses are usually found outside towns or in industrial zones, and as a rule, clients for such properties are serious companies acquiring such a property for their own needs, so a reselling can hardly ever be expected. Aprenda más
