2007 may be described as a good year for the real estate business in Central and Eastern Europe, in spite of a tendency for slowing growth compared with previous periods.

The markets in the region have also been affected by the global credit crunch which started in the US and which is expected to continue to be a major factor this year, a research by СВ Richard Ellis states.

Last year, the number of transactions with real estate in Bulgaria was 35% higher than in 2006. Their value amounted to 878 mln euros.

Most investments have been directed to commercial and office premises in the capital city. The most active investors were Landmark, Miller Developments, Quinlan Private, as well as GE Real Estate CEE.

Industrial properties brought the highest return last year (8%), according to the research.

СВ Richard Ellis studied eight capital cities in CEE (Bratislava, Bucharest, Budapest, Moscow, Prague, Sofia, Warsaw and Zagreb). Return on investment in industrial real estate in Sofia equaled that in the capital of Romania – Bucharest and ranked second in the region. Number one is Moscow (9%).

Sofia is only preceded by Moscow in terms of profitability from commercial real estate as well. The average return on this segment in the Bulgarian capital is 7% and in Moscow at 9%.

Return on investment in office space in Sofia stands at 7%, slightly behind Moscow (7.5%).

CapitalOffice spaceCommercial Property Industrial PropertyBratislava5.6%5.8%6.5%Bucharest6.1%6.25%8,00%Budapest5.75%5.75%6.75%Moscow7.5%9,00%9,00%Prague