Bulgarian property market affected by Floods aftermath

Damaged infrastructure and risks of more rain could see prices of Bulgarian land and property fall due to the recent floods in the country.

However local estate agents believe that the unseasonal weather will only have a short-term impact on the country's property market. With many hoping the renovated infrastructure will attract more foreign investors.

Other recent news coming out of Bulgaria, reveals that a 100M Euro golf complex is to be built near Sofia, which could be open as soon as next year.

Bulgaria's fourth golf course is set to be built near the village of Katina, just north of Sofia, and will be accompanied by a five-star hotel with swimming pool and bungalows.

Morgan Stanley satisfied with value of commercial property in Europe

European commercial property is currently accurately priced, while offering attractive investment yields compared to bonds, according to Morgan Stanley.

Fresh research reveals that although the retail sector has performed strongly since 2001, it is office rents that offer scope for more cyclical upside potential.

Although office vacancy rates continue to remain quite high, particularly in Frankfurt, they are now turning down in the City of London and stabilising in Paris' central business district, while there are few new developments being constructed.

Morgan Stanley said the ratio of European prime office yields (rent as a proportion of capital value) to ten-year European bond yields still look very attractive.

Average prime office yields in continental Europe have more scope to fall than in Britain, which have fallen due to strong investment flows which has pushed up prices, and the lower cost of debt in the euro zone also provides space for further declines in yields, Morgan Stanley said.