Yearly Archives: 2013

The number of the available Sofia offices is decreasing but even so the available office premises in the Bulgarian capital are still around 15 %. That is why the rental levels remain stable and vary between 9 and 12 Euro/sq.m depending on the exact location and level of facilities in the office building. Sofia city has a quickly developing office market and the prognoses are that soon the percentage of the available office premises will drop, if the political and economic situation in the country remains stable.

The real estate specialists think that Bulgaria has released only half of its potential for new office premises. This, however, does not mean that there is room for any large office projects to be constructed in Sofia in the next few years. At the same time, the office market during the last two years in Sofia was driven by large international companies which are looking to outsource their business in Bulgaria and especially in Sofia. These companies are interested in modern office buildings in Sofia with good location, parking zone and easy access via the public transport system of the city. Offices in Sofia, which are placed in areas that are not appealing and with fast and convenient access, are not in the focus of the foreign companies that are outsourcing their business in the country.

For the first time in a period of more than 3 years will start the implementation of several new projects for business and office buildings in Sofia. The offices that have been rented out in the last three months have increased in number with 45%, due to the number of new foreign companies that emerged on the market. In the period between June and September the rental offices in Sofia were 20 000 sq.m. Most of the companies that decided to open new offices in Sofia city came from the outsourcing sector and the information technologies sector, which make 60% of the total coverage area of all rented office premises during the third quarter of 2013.

In the last three months the large international companies are moving to bigger offices due to the development of their business. The foreign companies are interested in the reasonable tax system and are attracted by the low wages and the low rental levels of the Sofia offices of class A. That is why during the third quarter of the year has started the construction of 15 000 sq.m of offices. Even so, by the end of next year 2014 will be completed only two large office projects in Sofia – the office area of Bulgaria Mall and Capital Fort. The interest is towards offices along Bulgaria Blvd. and the airport Sofia. The rental levels are expected to remain the same between 9 and 12 Euro/sq.m and 12.5 Euro/sq.m for the top center of Sofia. These levels will most probably remain the same until the end of this year and the beginning of next year.

The number of the completed office premises in Sofia for the first half of 2013 has dropped down with 63 %, compared to the same period a year earlier. During the six months’ time were put into operation approximately 30 000 sq.m. of office premises. The low levels of activity from the investors are due to the increase number of premises in the recent years and the decreased number of companies that are looking for offices for rent. At the second half of the year were released only three office buildings – one in the downtown Sofia and two in the central zone of the city.

This reduction in the construction of office buildings is a result of the increased supply of Sofia offices over the last several years and the slow economic recovery of the country. The real estate agents warn however that the limited construction of offices now and the required time for completion of new projects could lead to a vacuum in the office market in Sofia during the next couple of years. Currently in Sofia are being constructed 193 thousand sq.m of office area. The prognoses are that there will be a 10 % increase in the number of rented office premises in Sofia city, in case the political and the financial situation in the country remain stable. Real estate agents confirm, that there is interested towards the rental of the office premises and not towards more serious investments like purchase.

In November 2012 was established the Bulgarian Outsourcing Association with Stefan Bumov as its chairman. The association was formed with the aim to unify the interests of the companies that offer outsourcing services and to offer better conditions for the international companies that are willing to make investments in Bulgaria. The companies that could outsource their businesses to Bulgaria work in the spheres of IT services, pharmacy, telecommunications, insurance finance, and even tourism. All international companies that are willing to open offices in Sofia or to outsource part of their activities in the Bulgarian capital are in demand for modern offices and pleasant working environment. These companies require central location or location near public transport, easy access and good infrastructure, excellent facilities and many extras. When the working conditions are good, the companies are reducing their monthly expenses and are provoking the interest of the job applicants, while at the same time are keeping the current employees.

According to Chairman Stefan Bumov, Bulgaria is quite appealing to the outsourcing companies due to its strategic location, the proximity to large European countries and the educated professionals with knowledge of English and other foreign languages. Bulgaria further offers good microeconomic and political situation, which turns the country into a stable destination for the outsourcing companies.

The large international companies that are entering the market in the capital of Bulgaria have certain requirements that concern the office premises in Sofia. In general the big international companies have demands on the type of the furniture and equipment in each of their offices. These companies have excellent reputation and have the status of good employers. That is why they do everything necessary to guarantee a comfortable and adequate working environment. Such an environment is expected to guarantee good results and an effective working process. That is why these companies that want to set such standards of office environment in Sofia are looking to buy or rent offices of the highest class A, with excellent standards of office equipment and facilities including open space premises, sports halls, recreation zones, café and a large terrace, as well as perfectly organized conference and presentation zones, plus parking area and zone for bicycles, as well as access for disable clients and employees. Another important issue is security of the office premises and the easy access. The modern office buildings in Sofia offer special cards for the access.

The international companies that are starting their business in Bulgaria are looking for employees with proven professional qualities and excellent personal characteristics. There is a demand for well-educated and trained employees. In general Bulgaria and especially Sofia are attractive outsourcing destination for the companies in the IT sector, financial, technical and bank services.