Stable and optimistic. This is how the industrial space market in Bulgaria can be described in two words from the beginning of the year and its development until the end of 2025 and the beginning of 2026. “I see an extremely positive trend. Currently, more deals have been concluded in the first three months than in the second half of 2024, i.e. I have a positive expectation. Of course, we are still talking about a situation of instability. I hope things will develop in the right direction. I think that a fairly large part of society is already determining in this direction and we will not have new vacuum periods, such as we have observed in the last 2-3 years“, said Vladimir Gyurdzhiev, Managing Director, BPD during the Fifth International Industrial Property Conference – BGSKLAD 2025.
The main questions that participants not only from Bulgaria, but also from neighboring countries (Serbia, Romania, Greece and Turkey) were looking for answers to were related to how we can benefit from the geographical location in which we are located, and even more so how we can benefit from the dynamic global economic environment in which we live today. Of course, despite the optimistic forecasts for the development of the sector, the problems in the sector were discussed in depth and what needs to be done to overcome them and for more foreign investors to recognize Bulgaria as their new and good place to do business.
What's happening in Europe
In recent years, the development of the industrial space market in the region has been quite dynamic. Bulgaria and Romania were becoming part of the Schengen area. “The removal of this barrier had a positive effect – "The interest rates have decreased, there is interest in value creation, and logistics hubs are expanding on both sides of the Bulgarian-Romanian border," said Corina Sandulescu, senior industrial property consultant at Dunwell Romania.
The Romanian industrial market has been developing successfully in recent years - mainly around Bucharest and areas in the western part of the country. In recent years, construction processes have been observed in the segment in both northern and central Romania, where new infrastructure is being built. "We have been very lucky in the construction of highways, especially in eastern Romania, and this process continues. There is infrastructure, but it is constantly improving and at an accelerated pace," Sandulescu added.
The port of Constanta has a key position. 90% of all cargo there comes from China.
Living in interesting times is definitely risky. For many it is a curse, but we should try to turn it into an opportunity. “The conflict between China and the US will have its consequences and we should try to take advantage of the situation so that the EU can become a more important partner for China, so that more Chinese companies turn their eyes to Europe“ is the opinion of Lachezar Dinev, Chairman of the Bulgarian-Chinese Chamber of Commerce and Industry.
A curious little-known fact is that in practice there is only one border between Bulgaria and China, and that is Kazakhstan. “The next border checkpoint is Kazakhstan-Russia, because of their internal customs control. This project was delayed, but it is still being implemented and goods from Europe can reach China in 4 days. If we use robots and other automated solutions, both Bulgaria and Romania, with their access to the Black Sea, can develop this road as the fastest one connecting the EU with China. Otherwise, the goods travel across the borders of 5 separate countries“, Dinev adds.
Proof of the interest of Chinese investments in the Balkans is Serbia. In recent years, China has invested in a number of sectors there, including mining, steelmaking, and logistics. “The Chinese see Serbia as a good buffer for storing their goods before they reach the EU. In July 2024, Serbia signed a free trade agreement with China, which entered into force immediately. Investments will definitely continue“, is the forecast expressed by Vladan Stojanovic, project associate at the Pirot Free Zone during the Fifth International Industrial Property Conference – BGSKLAD 2025.
However, the entry of Chinese entrepreneurs was preceded by huge investments in building road infrastructure. Investments from the Asian country will continue, as our western neighbor has been selected to host EXPO 2027.
Yes, Chinese investments are important because they increase the efficiency of other investments, but they are not key.
E-commerce also goes hand in hand with China. Will such large companies as Temu and Shein come to markets such as Eastern or Central Europe? The answer is rather negative and is due to the fact that these platforms have a domestic market of nearly 5 million people. There is no adequate reason for e-commerce stores of this scale to rent warehouse space in our country.
There are inquiries from smaller merchants. One of them has already rented 20,000 sq m. for storing goods in neighboring Romania. “The activity of e-commerce companies is quite lively. Not only Chinese companies, but also suppliers from Turkey“, adds Sandulescu.
Greece, on the other hand, is reporting a 30% growth in e-commerce and from this point on, the forecast that an increase in the rental of logistics and warehouse space by e-commerce companies can be expected is realistic. “2024 investments in logistics are close to 150 million euros compared to 2023, when they were over 300 million euros. We are in an extremely crucial period – many changes are occurring in zoning, regulations. There is a shift from the old industrial parks, which were not regulated, to the new ones, which are already regulated“, said Nikos Manomenidis of the Central European Real Estate Association in Greece.
The drastic changes that are taking place on the global economic scene inevitably lead to rationalization. “A large part of the rationalization is in the use of equipment, for example the cloud and its use is much more rational than each company maintaining its own servers. Perhaps there is a time when companies will start rationalizing ports, roads, airports and this will happen within the entire Balkan region. "Maybe we should follow the model of being united as a single organism and learn to work effectively together, using the workforce, infrastructure and everything else in the most rational way," is Stoyanovich's opinion.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE