Just 28,000 sq.m. of office space has been completed last year in Burgas and just 32,000 sq.m. are currently in the process of development. There have been no large projects in the city so far. The construction of two shopping centers starts in a few months.
Plovdiv ranks second, right behind Sofia, in terms of number of sales last year. Next is Varna, followed by Ruse and Burgas.
Demand for class A offices is highest in Sofia (up 69% y/y).
Vacancy in Sofia stood at 5%, which is the lowest in the country. In other big cities vacancy rates ranged between 9 and 12%.
In Sofia demand is highest for larger offices of about 500 sq.m. and plus, while in other cities smaller offices are more popular.
Offices of up to 100 sq.m. were the most sought ones in Plovdiv, Varna and Burgas. Demand is also high for those of between 150 and 200 sq.m.
Selling prices in Sofia averaged 3,200 euros per sq.m., rents were between 6 to 27 euros/sq.m. The average return on investment on such properties stood at 8%.
Prices in Varna were between 1,000 and 2,000 euros per sq.m. and rents ranged between 6 and 20 euros/sq.m. Return on investment in office space there stood at 6.5%.
In Plovdiv the average price stood at 1,100 euros, rents varied between 5 and 10 euros. Offices in Burgas offer the best return on investment – 9.6% at an average price of between 1,200 – 1,300 euros/sq.m.