Bulgaria Boasts Growth in All Commercial Real Estate Segments
The total stock of Class A and B office and business space amounts to 606,500 m2, up by 10% since the beginning of the year, says the H2 market overview of leading real estate company Colliers International.
The overall vacancy remained unchanged at 5.1% with increases in suburban areas and decreases in the broad center and Central Business District (CBD). More vacancies are expected with more than 330,000 m2 Class A and B office space under construction in the suburban areas.
Asking rental rents continued the upward trend in the first half of 2007, ranging between EUR 12 - 26/m2/month for Class A properties.
Retail remain the most dynamic commercial real estate sector in Bulgaria, the survey shows. The active shopping mall pipeline increased by 138,500 m2 Gross Leasable Area (GLA) and amounts to 201,000 m2 under construction by the end of June 2007.
Colliers' experts comment that the market has seen the recent entrance of experienced, international developers with significant projects. Three new shopping developments broke ground in the first half of 2007 - Carrefour Mall in Sofia, Serdika Shopping Center also in the capital and Mall Stara Zagora. The Black Sea town of Varna is also shaping up as a competitive market for shopping mall developments.
Shopping centres and malls command rental price between EUR 30-55/m2/month versus EUR 20 - 125/m2/month for high street locations in Sofia.
Logistics and industrial real estate amounted to 160,000 m2 or 13% of the total inventory of speculative space in Sofia, the market overview shows.
Rental rents for prime, contemporary industrial space remains stable, and continues to range between EUR 3.8 - 5.5/m2/month.
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