Stability Reigns: Sofia Real Estate Market Thrives Despite Uncertain Times

Business » PROPERTIES | April 25, 2024, Thursday // 16:34
Bulgaria: Stability Reigns: Sofia Real Estate Market Thrives Despite Uncertain Times Photo: Stella Ivanova

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. According to data from the consulting firm "Colliers," returns from residential properties held steady at 4%, while offices and commercial areas saw a return of 7.75%, and industrial properties yielded 7.5%. Despite global economic fluctuations, the total investment volume in Sofia's real estate market reached an impressive 12.3 million euros.

Sofia boasts a significant inventory of high- and medium-high-class apartments, with 16,540 currently available and an additional 5,250 under construction. Despite this supply, average offer prices have remained unchanged, with two-bedroom apartments priced between 180 and 230 thousand euros, terraced houses ranging from 320 to 450 thousand euros, and detached houses priced over 490 thousand euros.

Rental prices have also maintained stability, with two-bedroom apartment rents ranging from 1,000 to 1,300 euros per square meter, and house rentals exceeding 2,200 euros per square meter. In the office sector, rents for class A spaces saw a slight increase to 15 euros per square meter per month, while class B rents remained steady at 10 euros per square meter per month. Despite ongoing construction efforts, unoccupied office spaces account for approximately 15% of the market.

The flex office segment in Sofia has seen considerable growth, with average monthly rents ranging from 150 to 220 euros per square meter depending on the type of workspace. With 63 operators offering a total of 8,717 jobs, the flex office sector represents a significant portion of the market, comprising 3.4% of the total office space.

Meanwhile, rental prices in shopping malls, main shopping streets, and retail parks have seen an upward trend, reaching 43 euros, 56 euros, and 11 euros per square meter per month, respectively. Although no new projects are planned for shopping centers, construction is underway for 70,700 square meters of retail park space. Despite this growth, the share of vacant space in shopping malls has decreased to 2.5%, while main shopping streets and retail parks have remained relatively stable at 1% and 3.3%, respectively.

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Tags: sofia, real estate, stability, prices

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