Investors look beyond Sofia for land

A developed infrastructure, access to railway transport, in the vicinity of Sofia and the Trakiya and Hemus highways were the main reasons that attracted investors to Elin Pelin and Ravno Pole. Due to high land prices inside the Sofia ring-road, buyers were increasingly looking eastwards, Pari daily said.

Large firms were prepared to pay between 15 and 20 euro for land in the Sofia area for the construction of logistics centres, according to real estate agents.

Interest in land had shifted eastwards to Elin Pelin and Ravno Pole, but the top prices investors were willing to pay in such areas were lower on account of reduced income from rentals.

For close to a year, international funds, specialising in the construction and management of logistic centres, had been testing the Bulgarian market. Their plans included large scale projects of tens-of-thousands of sq m east of Sofia's ring-road, but these plans have a hard limit on land prices,  Pari daily said.

International investors would come to Bulgaria with ready equations in which rental prices and construction expenses were fixed constants. Only the price of land was variable, Asen Tanev, managing director of City Estate agency said.

A developed infrastructure, access to railway transport, in the vicinity of Sofia and the Trakiya and Hemus highways were the main reasons that attracted investors to Elin Pelin and Ravno Pole. The increased interest had led to increased prices for land, which was said to have reached 30 to 35 euro per sq m already.

Remax Chance Group said it expected an increased interest in other regions, like Dolni Bogrov and Gorni Bogrov. After recent changes in Sofia's city masterplan, a new logistics area, close to the ring-road, had been established. Prices in this area had not dropped below 50 euro per sq m before, but now areas of 15 to 50 000 sq m were offered at around 35 euro per sq m, Simeon Mitev from Remax Chance Group said.

A developed infrastructure, access to railway transport, in the vicinity of Sofia and the Trakiya and Hemus highways were the main reasons that attracted investors to Elin Pelin and Ravno Pole.

Source: Propertywise