Tue, May 22 2012

Buying an office in Bulgaria costs the same as leasing - Creditex

Mon, Aug 30 2010 10:43 CET

byDnevnik.bg

2415 Views 1 Comment
Buying an office in Bulgaria costs the same as leasing - Creditex

Photo: Georgi Kozhouharov

There is no difference between the expenses incurred in buying an office in Bulgaria using a mortgage and leasing an office, according to non-banking financial institution Creditex, part of the Bulgarian unit of Dutch-based TBI Financial Services.

The company anticipates a pick-up in the Bulgarian business property market due to changes in the ratio between selling prices and rents, it said.

About 16 percent of Creditex’s loan portfolio covers investment properties.

While lease prices are lower than in 2008 and loan interest rates are higher, the purchase of an office through a bank loan costs as much as renting one, according to the company.

"Coming out of the crisis would lead to a gradual increase in rents and selling prices of not just offices but also of manufacturing and warehousing space," according to Krasimir Gumnishki, business lending manager of Creditex.

"The companies that will have managed to purchase their own site by this time will save money from rents in the future and could make a capital profit, too," he said.

Source: Dnevnik.bg

  • Print
  • Send via email
  • Translate to
  • Share:

Comments

Anonymous 13 Mon, Aug 30 2010 13:16 CET
Report Comment

yes, the old saying "speculate to accumulate"


To post comments, please, Login or Register.


Please read the The Sofia Echo forum comments policy.

Bulgaria's leasing market still weakening

Bulgaria's leasing market continued to deteriorate in the third quarter of 2010, continuing the trend which started at the beginning of 2009, according to Bulgarian National Bank (BNB) data.

Colliers International: Office rent levels in Bulgaria to stabilise in 2010

Other experts in the field, however, believe that rents will continue to go down as new office space is made available, while demand remains largely unchanged.

Bulgaria drops five places in global office rent rankings

With annual rental costs of 205 euro a sq m, or a monthly 17.08 euro a sq m, Bulgaria was number 54 out of 63 worldwide cities by 2009 levels, dropping from 49th place in 2008.

Office rents in Sofia to stay unchanged in 2010 - study

Rents had decreased by 22.5 per cent by the end of 2009, as opposed to levels from the summer of 2008, which brought renewed interest in the market segment, according to property consultants Elta Consult.

Newly-completed office buildings to keep rents low in 2010 - study

About 375 000 sq m of new office space is going to be completed an made available on the market in 2010, which will have a dis-balancing effect on the prices due to excessive supply

More in this category

Bulgaria's real estate market stabilising - realtors

Worst is over for Bulgaria's property market after three years of decline, reports by Yavlena and Bulgarian Properties real estate firms claim.

Bulgaria plans bill to weed out rogue real estate agents

Draft law envisages professional association for real estate agents and a public register of real estate companies to bring order to the business and get rid of rogues and rip-off artists.

Landmark Centre Varna to be offered for sale on March 21

Landmark Centre Varna’s financial reports show its largest debt is an investment loan of 6.9 million euro issued by Eurobank EFG Bulgaria in mid-2008 and secured with a mortgage.

Raiffeisen Real Estate: Prices of Sofia homes returned to 2007 levels

Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.

Most property sales in Bulgaria were people wanting to escape their investment – report

Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.

© 2000-2012, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.