According to a survey by Foros Real Estate Agency, the Bulgarian commercial sector, particularly the office segment, has been badly affected by ample supply and flagging demand in the first half of 2009.

Around 20-30% of offices across the country are lying empty. Rental and sale prices have decreased by -12.27% and -7.26% respectively since January.

Analysts from Foros are predicting sporadic investment activity in the second half of the year. Development projects will be delayed and a recovery is not expected until the economy improves. However, some analysts see the green shoots of recovery in consumers’ revived interest and restored confidence, as well as in decelerated price downtrends.

The residential property market is also suffering. Jones Lang LaSalle has estimated that property prices have declined by -12% in Sofia in the last year while real estate agency Address puts it at 16-38% in the last six months alone.