190 million euros invested in office buildings in Bulgaria

In the previous year 2023, investment deals for commercial properties totaling 190 million euros were concluded in Bulgaria. A large share of the concluded deals, 50%, was for office spaces, followed by hotels at 18%, and retail spaces at 17%. Logistics and industrial properties ranked last in the classification. Clients seeking commercial properties have specific preferences, indicating that buildings should be modern and well-functioning, while location is less important.

In addition to concluded sales deals for commercial properties, there is also demand for leasing such properties. The volume of leasing deals for office spaces in Sofia reached 181.7 thousand square meters, which brings the market back to pre-crisis levels of 2018-2019.

Data shows that in 2023, a total of 220,000 sq. m of new stores in shopping centers and retail parks were opened in the country. This trend continues, as at the beginning of this year, 5 new retail parks with a total area of 77,000 sq. m are under construction, and another 20,000 sq. m are extensions of partially opened facilities. Another 7 parks with a total area of 95,000 sq. m are expected to be built.

The greatest demand for retail space is reported by chain stores and supermarkets. High demand and low supply provoke price indexation, leading to an increase in rental levels. This trend is most noticeable in warehouse spaces on the Sofia Ring Road, with levels expected to range between 4.9 and 5.40 euros per sq. m.

After overcoming the COVID-19 pandemic, which caused many businesses in the country to close, business has fully recovered since the past year 2023, and demand for this type of property is increasingly expected to rise.