The volume of investment deals completed in the second half of 2021 amounted to 221 mln euros, thus compensating for the lower activity in the first six months of the year. On annual basis, the investment market reached 240 mln euros, a standard level for Bulgaria.
Yields in the second half of 2021 for office assets compressed to 7.75%, retail and industrial ones remained stable at 7.75% and 8.5%, respectively.
In the short term, office assets yields are forecasted to contract further, while no change is expected for industrial and retail space. The decline in office yields is related to higher ESG requirements, sellers’ compensation for rent concessions granted during the pandemic, and the scarcity of new projects under construction over the last 18 months.