High quality warehouse areas offered on the Bulgarian market occupy 700 000 sq m. This is 60 per cent less than the actual demand. Several major problems affect the sector. Among these are  high prices of plots appropriate for the construction of industrial properties and the bad infrastructure.

Prices of appropriate for the purpose plots exceed 35 euro per sq. This is the average sale price in Central Europe. Sale prices of industrial properties are similar all around Central Europe and are comparable to those in Bulgaria. Rental price higher that five euro per sq m is considered higher than average levels in Central and Eastern Europe.

Improving the infrastructure in Bulgaria’s industrial areas will stimulate the market. Industrial property market would become more attractive both for private warehouse owners and for large-scale European players.

In 2006 investors were only talking about big projects in the industrial property sector. In 2007 some of them will be carried out. Analysts expect that the first major projects will appear in 2008. This is a logical result after foreign developers and investment funds stated their intentions to enter the Bulgarian market.

At the moment rental prices of industrial properties vary from three to 5.5 euro per sq m. Vacant space is a rare. Warehouses of poor quality could be rented for one to two euro per sq m. Vacancy rate for this class of properties is 40-50 per cent. Expert do not expect changes in these figures until the first quality logistics centres appear on the market.

Dnevnik Daily