Monthly Archives: August 2013

Sofia offices of the highest class A are the ones that are most sought after and their rental levels remain stable. At the same time the number of the available offices of that class is going down since not many investors are now starting new projects for luxurious office buildings. The stable rental and sales levels of these high-class Sofia offices will remain the same, according to the prognosis of the real estate agents. The demand for such offices is due to the outsourcing business, the IT companies that are based in Sofia, the pharmaceutical companies and the shared services call centers. All those companies and business representatives are looking for business centers of high class that have large office premises and convenient to use transport infrastructure.

Approximately 65 % of the available office premises in Sofia are based in the business districts outside the center of the Bulgarian capital, followed by 20 % office premises in the center of Sofia and 15 % in the other regions of the city such as Lozenets district, for example. Due to the increased demand for offices of class A and the lack of new projects the construction of which have started this year, real estate agents predict that there will be a shortage of quality offices in the near future, which will lead to a new niche for prime buildings construction with reasonable investment and a great location. In the next months to come shall be finished several new office projects that will meet to some extend the needs in that segment of the market.

The modern offices in Sofia that are part of high quality business buildings of class A are not that many and in the near future there might be a great demand for such top offices. This is so, as in the first six months of the year were rented or sold 44 % of the high-quality Sofia offices. These are offices with excellent location in Sofia, many facilities and extras, large parking zones and perfect business atmosphere. The available office premises in Sofia of that class are approximately 12% and their number is going down. Managers of top companies that have entered the market prefer the business districts and the Sofia office buildings of higher class where they can count on parking zone, lack of city noise, more green areas, security services and common parts management services.

Sofia city remains one of the most sought-after destinations in terms of good professionals, low expenses levels and great offices. That is why many foreign companies decide to invest in Sofia and relocate their entire business or just a part of it. It is no surprise that so many outsourcing companies are now coming to Sofia, renting offices in the business zone of Sofia and hiring local professionals.

Typically, the property market is not very active during the summer season and this is valid for the market for sale and rent of offices in Sofia. During the last few months, the office market in Sofia faced no big changes. The situation in the Bulgarian capital shows that there are many office buildings and the tenants still have a good choice of office premises. The companies are looking for more extras and better location of the Sofia offices, while at the same time they are trying to get them at lower prices.

According to the real estate agents, the modern offices that are part of office buildings of class A are rented out in the price levels 8-11 Euro/sq.m. However offices in Sofia could also be rented at 5 Euro/sq.m if the location is not that good and in case the office is not part of a modern business center.

The expectations of the real estate companies are that there will be a higher and more serious demand for offices in September, when many companies will decide to get a new, bigger office in Sofia and relocate before the winter season. Thus, the agencies predict that some of the modern office buildings will get new tenants soon and the Sofia office market will enter a new phase.