Manyu Moravenov, Fairplay  Properties REIT

The first results
There are a few results but what we can see is too little. The completion of a project takes a year and a half or two and only then you have first results.

Too many or too few
Both. As number they are not few and their number will grow more and more. But as a volume they are far from many. Either new ones will be established or the REITs that stay on the market will grow. Their assets are about BGN 500 m. For comparison – the foreign direct investments in real estate for 2006 exceed EUR 1 bn.

The investors
The market is fed up with promises for quick profits, but not with serious, large-scale projects. Those with short money have had enough of REITs. The sector is a little bit less risky and for that reason investors seek better shortterm result in the market for other securities.

Perspective
At least one more year is needed before the real Bulgarian REITs start having their own character. Currently, even the big ones are not big enough. They are still young companies at the stage of creating their portfolios. But definitely, the initial euphoria is gone. Major interesting projects will always attract funding. In fact the real problem is to find where to invest.

Source: THE BULGARIAN PROPERTY INDEX MAGAZINE