Beauty Salons and Restaurants - The Most Demanded Business Properties

dnevnik.bg, 7.10.2009

In times of crisis, the most sought after on the market for commercial properties are beauty salons, SPA centers, bars and restaurants. This is what shows a survey conducted by "BULGARIAN PROPERTIES". The reason for this is that these businesses are not so much affected by the crisis and have higher returns, said Polina Stoykova, Chief Operations Manager of the real estate agency. Supply of such properties is much lower than this of other business properties and such properties don't stay long long on the market, the study found.

Offers of spas, gyms and beauty salons are very few and the owners are rarely willing to make reductions in prices. Demand is mainly for equipped beauty salons to purchase or rent.

The investors who look for bars and restaurants are very active and when a good offer appears for rent it often goes very quickly. The reason is that rents are offered at reasonable levels of 8 to 10 Euros per sq.m. and even better conditions are achieved through negotiations, said Stoykova. She pointed out that the specific thing for the bars and restaurants for rent is that most of them are offered with a condition of purchase of the complete equipment by the new tenant. The advantage is that no time is lost in furnishings and decoration of the restaurant and the new tenant can start doing business literally immediately with returning customers of the bar or the restaurant.

The market for the sale of offices in the capital has been vague from the beginning of the year. Supply is very good and with various properties but almost no demand, the study found. The reason is that sellers still hold high prices. Even after a price reduction, one can rarely find offices for less than 1500 Euros per sq.m. Those of the highest standard and/or in the center of Sofia are even offered between 1500 and 2000 Euros per sq.m. Because of still higher prices than most buyers prefer to buy residential properties to use for offices because the apartments' prices have dropped more over the recent months, said Stoykova.

Rental of offices of the highest class with a perfect central location vary widely from 8 Euros per sq.m to 26 Euros per sq.m. Mass offerings in this segment is at around 10 Euros per sq.m. The most expensive office rents are in the building of "Landmark" on Tsar Osvoboditel Blvd. - 26 Euros per sq. m., and for 15 - 20 Euros per sq.m. offices are in the center of the capital - Vitosha Boulevard, Positano Str., Dondukov Blvd., Todor Alexandrov Blvd., Bulgaria Blvd. Offices in and oppostite Business Park Sofia are being offered at prices of 10 Euros per sq.m.

Overall, on the business and commercial real estate market only bargain prices are able to attract investors who have cash, said Polina Stoykova.

If you want to read the full analysis of the prices of commercial properties in Sofia and Varna, please send us an enquiry.

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