Balkan Property Market Is Thriving, Greece Lags Behind Report

Greek property market misses a considerable investment volume each year due to its “immaturity,” Greek business daily Imerisia reported, as quoted by investor.bg.

An underdeveloped market and state policy toward business, as represented by high tax rates, expensive red tape and lack of robust legislative framework, curtails private incentive. At the same time, other Balkan countries are undergoing a rapid development, attracting significant foreign investment, the daily claimed.

Global Finance, a Greek fund manager, has recently announced its intention to set up a new fund, planning to raise 350 million euro for projects in Ukraine and West Balkans, in addition to its existing 500 million euro fund that covers the Balkans

Greece has dropped out of their investment prospectus and one of the reasons is problems with the real estate market in the country, Imerisia quoted Global Finance officials as saying.

The fund had large-scale office and residential projects in Serbia, Romania and Bulgaria. Last year Global Finance announced its plans to build a 55 000-sq m multi-functional project on one of Sofia's central boulevards.

Greek investors are increasingly looking for opportunities on Balkan property markets rather than domestically, according to Imerisia.

Bulgaria is one of the countries benefiting from this, with Aspis group becoming one of the latest investors announcing their intentions to enter Bulgaria's market, planning to offer consultancy services and by acquisition of local construction companies.