Bulgaria's entry into Schengen will shake the commercial property market
Sofia has too much old office space that needs a makeover
~ 2 min read
Gabriela Mahlelieva Bulgaria's accession to Schengen will have a positive impact on the investment property market. This is the opinion of Gabor Borbelli, CEE Research Director at CBRE, who attended the Balrec 2023 event organised by City Media Group.
It is very important for the countries of the region to join Schengen as soon as possible in order to reap all the benefits of membership," said Borbelli, analysing the investment market in Central and Eastern Europe.
Vladislav Hristov, Director of Advisory and Brokerage Services at MBL, agrees. He believes that Bulgaria's entry into the Schengen area will show international investors that our country can overcome certain difficulties. And the Schengen area offers many great opportunities for business development.
According to Borbelli, Sofia has the potential for growth in the office market to reach the level of other European capitals. The problem in the Bulgarian capital, however, is that there is too much old office space in need of renovation.
Borbelli's observation of the commercial property market in the CEE region shows an unstable and very complex situation. In 2023, the industrial and residential segments will be most affected. At the same time, the hotel segment is developing very well, including in Bulgaria.
This segment is growing not only from an investment point of view, but also from a consumer point of view. Tourists are coming back," says Borbelli.
According to him, in order to develop the business successfully, climate change should not be forgotten, as it can give a boost in another direction of business development. He cites a study that shows that by 2050, climate change will make Sofia similar to Morocco. Therefore, we need to think about changing the products we offer.
In the long term, there is cumulative progress. Markets are growing enormously. In 20 years, the commercial property market in Bulgaria has grown by 50%," says Gabor Borbelli.
This article was translated with the support of DeepL.
