Office Property Market In Bulgaria To Continue Growing Report

Though it was unpopular until 2003, the Bulgarian office property market is growing and is expected to evolve further, Landmark Property management board chairman Richard Macdonald said.

Macdonald took part in the first ever property international press tour in Bulgaria. Sofia Echo Media and Central European Property Investment Forum (CEPIF) feature among the organisers of the event.

Sofia already boasts various office property projects and a number of others are in the process of being completed, Macdonald said.

Some of the major office property projects in Sofia include Lozenets Expo, Business Pak Sofia, Business Park West and the developments alongside Bulgaria and Tsarigradsko Shousse boulevards, Macdonald said.

Vacancy rates have fallen dramatically, he said, though no one expected several years ago that the office property market will see such development.

One noticeable office property market trend is that local investors tend to buy, while foreigners rent, Macdonald said. At the moment demand exceeds supply.

Another fact is that the quality of office property projects is constantly improving and will continue becoming better.

Macdonald said that in Landmark’s estimates in the near future rent per sq m will reach up to 17 or 18 euro and yield compression will vary between 6.5 and seven per cent.