Big business industrial and residential property investment to be done over the

Various factors contribute to the market’s positive trends

2008 and the next few years will be another good period for the property construction and development sector, according to a market survey conducted upon the request of real estate investment company Karrat Group Ltd. The survey analyzed market trends in the sector, demand, and the major projects that are to be implemented over the next several years. All property construction sub sectors will be the object of great investment interest: business, industrial, tourist, and residential property investment will grow despite some worries about the global credit crunch. In the business property sector, several main trends can be identified. There is unprecedented growth in the construction and lease of class A office buildings, mainly motivated by the growing number of international companies which enter the Bulgarian market. The same is valid for the so-called commercial centers, which proved to be a very successful format in big cities, and the construction of which will continue in Sofia, Varna, Plovdiv, etc. The investment potential of industrial property is also growing; many construction projects were started or are about to be completed in 2008. While most of them are small – to – medium – scale works and enterprises, the tendency for this sector is to gradually grow and cover some major industrial construction projects. The main trends in tourism building are investment in spa centers and projects for small hotels or resort complexes in some of the country’s still-undeveloped areas. Tourism is developing, and the number of foreign visitors to the country is increasing each year, so investment in tourism is to continue to rise over the next years. In terms of residential real estate investment, closed-type residential complexes are the type of property that attracts the highest interest among investors and individual buyers, especially in the country’s big cities. As the population grows and traffic and pollution problems begin to emerge, people realize the need of comfort and convenience – two of the main features that this type of residential complexes offer. Karat Group Ltd. is currently developing exactly one such complex. It is called City of Fountains and real estate experts often describe it as ‘Sofia’s most ambitious real estate project’. The project is located in the quickly developing Mladost 4 Residential Area, and will consist of 18 residential and 2 class A office buildings. City of Fountains has been especially designed to meet the lifestyle needs of successful professionals and working families; therefore it offers excellent location and transport connections, outstanding quality and landscape design, as well as an impressive range of leisure, social, and shopping amenities.