Sofia Office Market: Growth in Rental Rates as New Developments Lag
Sofia's office market has experienced moderate rental activity over the first nine months of this year
US high-tech VMware will rent more than 20,000 square meters in two of the buildings built in the Garitage Park complex. The announced rental area is the biggest office deal on the Bulgarian market.
Buildings will be put into use in mid-2019. VMware will provide more than 1,600 jobs, meeting rooms, leisure facilities, and employee entertainment.
"We aim to turn the office here into an even more attractive location for Bulgarian and foreign specialists to work and live in Sofia," said Diana Stefanova, Managing Director of VMware Development Centers for Bulgaria and EMEA.
Colliers International Bulgaria was the consultant for the deal.
Garitage Park is a residential and business complex located on 165,000 m2. The project will be realized in stages and fully finished will include:
• 95,000 m2 of offices
• 60,000 m2 of dwellings
• 90,000 m2 of parkland with lake, children's and sports grounds
• Primary school for 500 children
• 4 500 parking spaces
• Sports center with pool
• Supermarket, restaurants, cafes and more.
Garitage Park is the first multifunctional complex in Central and Eastern Europe to receive a BREEAM Community intermediate certificate for social, economic and environmental sustainability. The complex is located in an area with well-developed infrastructure and direct access from the Ring Road, which provides fast and convenient transportation to the center, airport and various parts of the capital.
The cost of housing in Bulgaria has surged dramatically in recent years
Rents in Sofia, Varna, and Burgas are seeing significant growth, but they remain among the most affordable in Europe
If Bulgaria adopts the euro in July 2025, property prices are expected to rise further
In the third quarter of 2024, housing prices in Bulgaria saw a notable rise of 16.5% compared to the same period last year
The real estate market in Sofia remains robust as the year draws to a close
Housing affordability in Sofia has improved since the pandemic, making it one of the few capitals in Central and Eastern Europe (CEE) to experience this positive trend
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