The last quarter of 2007 was good for the development of the office property market in Sofia, the latest report of MBL consultancy shows.

The class A and B office space amounted to 784,000 m2 as at the end of 2007, while the newly-built office space in the fourth quarter the stood at 48,350 m2.

At the same time more than 580,000 m2 of office space, which will be put up on the market in the next few years, was under construction as at the end of 2007.

More than 1 mln m2 of office space will be launched on the market in Sofia in the next three to five years, MLB forecasts.

The vacancy rate of office space of class A and B stood at a record low 4.9% in the end of 2007, compared to 5.1% as at the end of September.

The vacancy rate in the central business district stood at 1.9 per cent vacancy, followed by the so-called broad center.

Th prices of class A offices went up by 14.6% in the fourth quarter of 2007 to 16 euro per m2, compared to 12 euros per m2 for the previous quarter.

The prices of offices space ranged between 12 and 20 euros per m2 during the last three months of 2007 depending on the location.

The prices of class B office space are more stable and did not register an increase in the fourth quarter. The prices ranged between 8 and 16 euro per m2 during the period. A total of 57% of the vacant office space were offered at a price of 10 euro per m2 in the last quarter of 2007.