Stability Reigns: Sofia Real Estate Market Thrives Despite Uncertain Times
The real estate sector in Sofia has shown resilience in the face of ongoing pandemic challenges, maintaining stability across all segments in the first quarter of the year
Despite expectations that upbeat sentiments among office occupiers will fuel this sector of the real estate market in the capital Sofia, prices have hit unprecedented lows, a survey shows.
As a result of oversupply of office space and fierce competition between landlords to gain new tenants, asking rental levels continued to decline during the first six months of the year, according to a report by realtor Colliers.
The sharpest decline in rental prices was seen in the suburbs, where they ranged from EUR 7.5-8 per square meter. Rental levels were down to EUR 8-11 per square meter in the wider city center, and EUR 10-15 per square meter in the downtown.
The total area of "modern office space" in Sofia has reached 1.4 million square meters in the first half of 2011, a growth of 5% year-on-year, with many new buildings completed in the outskirts of the city.
About 65% (898 000 square meters) of the office space in Sofia are located in the suburbs, while 21% are in the greater city center, and 14% are in the downtown.
The consultancy's report further reveals that the average office tenant contract period in Sofia remains unchanged – 3 to 5 years.
Relocation remains the main driver of tenants' activity as recent months have seen many tenants of office space in Sofia shifting their location from the greater downtown area to the periphery of the city or moving into a place with more comfortable and suitable conditions.
Office space rental prices in Sofia may continue to decline before stabilizing hopefully in about a year at the earliest.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
The real estate sector in Sofia has shown resilience in the face of ongoing pandemic challenges, maintaining stability across all segments in the first quarter of the year
As of 2022, the count of fellow countrymen who purchased real estate overseas reached 2,154, based on data from the National Revenue Agency referenced by "Telegraph"
New data from the National Statistical Institute (NSI) sheds light on the housing landscape in Bulgaria, painting a picture of the majority of Bulgarians residing in older homes.
Bulgaria has witnessed a remarkable surge in home loans at the beginning of the year, with loans for households for the purchase of houses and apartments reaching a record high of BGN 20.52 billion by the end of February
The housing market in Bulgaria witnessed mixed trends in the fourth quarter of 2023, with overall prices experiencing a modest increase of 1.2%
Bulgaria witnessed a staggering surge in mortgage loans in 2023, totaling a monumental BGN 6.39 billion
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022