The 2nd RICS Real Estate Valuation and Investment Conference in Bulgaria brought the region to the spotlight
Bulgaria’s Deputy Minister of Regional Development Nikolai Nankov received the first copy of the IPMS for Office buildings in Bulgarian
“A flood of money” caused by the European Central Bank’s quantitive easing and the resulting yield compression in mature Western-Eruopean markets offers an opportunity for Central and Eastern Europe and for Bulgaria in particular, to return to the focus of the international real estate investors, the 2nd RICS Valutaion and Investment Conference in Sofia heard.
The message was conveyed in the presentation of Jörn Stobbe, RICS Europe Board Chairman, Forton, a Cushman & Wakefield Alliance Partner, organized the conference with the support of the RICS and the Chamber of Professional Valuers in Bulgaria.
According to Mr. Stobbe it will take time for money to move beyond the core Polish and Czech markets to other parts of Central and Eastern Europe. For Romania and Bulgaria the return of the international investors is expected in the medium term. With regard to property markets in Europe he said the weak economic growth would be a challenge. As to Bulgaria the low transparency in transactions and corruption are main issues facing international investors.
"Foreign investors still don’t feel secure enough for the Bulgarian market, although the opportunity is here to invest in core assets on a non-core market and in the same time to diversify their portfolios and to enhance performance", said Michaela Lashova, MRICS, Executive Director of Forton. According to Forton 2014 ended with 223% growth in the commercial property transaction volumes . The market totaled €256 m. The most part of this growth was driven by domestic capital chasing distressed deals.
As an important condition for Bulgarian market to attract foreign real estate investors Michaela Lashova pointed the implementation of international measurement and valuation standards which would strengthen investor confidence. The application of the International Property Measurement Standard - IPMS for Office Buildings was one of main topics of the conference. The Deputy Minister of Regional Development and Public Works Nikolay Nankov received the first copy of the IPMS for Office Buildings from Sander Scheurwater, Head of External Affairs & EU Liaison in RICS Europe. Bulgarian is the fourth language in which the standards are available after English, Chinese and Russian.