Office spaces in Bulgaria

According to the consulting company Forton, the market led to recovery of the sector of business properties in 2013.

The total volume of leased areas in Sofia reached its highest level since 2008 and for the first time in the last five years has exceeded 100 000 sq.m.

Last year was a landmark for the market of commercial properties. Thanks to continued foreign investment in business services, office areas in Sofia were the strongest performing sector.

For the first time in 2010, the entrepreneurs started new projects. As a result of higher employment and the prospect of a rise in rents in the best buildings in 2014, we expect some of them to become a target for acquisition by international investors.

The leading shopping centers were able to benefit from the growth of the international fashion and sports brands such as Inditex, H&M, LC Waikiki and Sport Vision. With the renovation of Vitosha Boulevard - the main shopping street, the interest to it raise regardless of the growth of retail space in the shopping malls.

The activity on the market of industrial and logistic areas preserve the levels from 2012, and the retailers again began to rent warehouses in Sofia and the surrounding area.

The value of purchases of properties with investment purpose also increased to 56 million euro.

In 2013 in Sofia were put into service new office buildings with 34 000 sq.m area. The volume of interest grew by 12.2% compared to 2012 to 108 300 sq.m. Fast-growing local companies had a major contribution with growth by 41% share of the interest areas for the year.

As a result of the reduction in the free areas of the most preferred locations by international tenants, the rents began to rise and at the end of the year were at double-digit levels from 10-12 euro per sq. m per month in all buildings with a high level of employment.

The volume of acquired industrial and logistics space in Sofia is equalized with that of 2012 - 78 000 sq.m of commercial retailers and suppliers of logistic services again started looking warehouses in Sofia and the surrounding area, and manufacturers of automotive components and electronics – to build or rent in major cities in the country.

A new speculative construction practically lacked, which further exacerbate the shortage of modern logistical areas in Sofia.
At the end of 2013 we saw fresh investments that led to the discovery of new industrial projects.

The lack of available space and the growth of demand would encourage property developers. We expect their next step to be the development of projects that offer high-quality warehouse space mainly in the region of Sofia, included Elin Pelin, Ravno pole, Bozhurishte and also around Plovdiv.