Yields on residential and holiday properties have declined more than twice over the past 5 years in Bulgaria, shows data released by mortgage consultants Creditex.

The rate of return has declined from around 9% in 2002 to just over 4% at present as the market moved into an oversupply of residential and holiday developments and rent rates eked out less than modest gains, said Krasimir Gumnishki, manager credit consultations at Creditex.

At the moment, retail properties afford the highest annual yield on the real estate market of around 12-14%, followed by logistics and industrial properties with 7-8%.

Creditex advises retail investors facing a yield downturn or flatline to rent out the property and mortgage it as security for a business loan.

The company has extended business mortgage loans worth over 25 mln euro in the past 2 years with the average loan amount at 50,000 euro, said Gumnishki.