Investors have slowed down or halted industrial and logistics centre projects in the face of administrative hurdles and a worsening global financial market, showed a research of property consultants Colliers International.
The projects’ fate will be decided in the next three or four months, said Simeon Mitev, manager of real estate agency RE/MAX Chance Group.
A humble 23,000 sq m of speculative logistics areas entered the Sofia market in the first half of the year, under data by Colliers.
Demand for modern industrial space is still high and outstripping supply, said Mitev.
Construction is booming in villages, small towns, outside the capital, in old urban zones and along key transport corridors.
Investors are battling speculative plot prices, a falling number of plots with good location, and heavy red tape.
Good plots outside the urban infrastructure zone near Sofia Airport are offered at over EUR 1,000/sq m, said Hristina Angelova of Yavlena Real Estate.
The warehouse market is dominated by freight-forwarding companies and FMCG retailers, who seek to rent some 2,000 sq m at good infrastructure, according to Colliers.
Rental prices of renovated storage space may dip if new projects enter the market, forecast Raiffeisen Real Estate.
Source: dnevnik.bg
