Description

The report covers developments in Bulgaria’s construction and real estate sectors over the period May 2013 – April 2014. It includes selected financial indicators for local REITs with total assets above BGN xxmn (EUR x.xmn) as of end-2013.

Construction output recorded positive annual growth in the first two months of 2014, after a weak performance in 2013. FDI in the sector decreased by xx.x% in 2013. The Q4 2013 data on building permits are somewhat ambiguous, with a decrease in the number of buildings, but strong growth in gross building area. Both the number and the total gross area of the buildings, the construction of which started in Q4 2013, have increased year on year.

FDI in the real estate sector remained negative in 2013, although improving from 2012. The sector stock index BG REIT has performed significantly worse than the Bulgarian Stock Exchange’s blue chip index SOFIX over the past year. The average market price of dwellings was x.xx% lower year on year in Q1 2014, but has increased by x.x% quarter on quarter, marking the second quarterly improvement since Q4 2008. Over the period covered by the report, two new shopping centres opened to visitors. They are located in the Black Sea city of Burgas and the northern city of Pleven. The pipeline is approximately xxx,xxx sqm and includes three mall projects, all located in the capital city of Sofia.

Key Points:
• Construction output recorded positive annual growth in the first two months of 2014
• The sector stock index BG REIT has performed significantly worse than the Bulgarian Stock Exchange’s blue chip index SOFIX over the past year.
• Over the period covered by the report, two new shopping centres opened to visitors, and the pipeline is quite strong at roughly xxx,xxx sqm.
• The report includes selected financial indicators for local REITs with total assets above BGN xxmn (EUR x.xmn) as of end-2013.