The Sofia offices of the highest class A, which are on demand by so many of the international companies that are outsourcing their business to Bulgaria, are not many in number. At the same time new first class office buildings in Sofia are not planned. That is why finding a suitable office in Sofia with all the facilities is not easy. The main search is for office of class A in Sofia and not for offices of any kind. Yet Sofia office buildings of class A that are in good locations come with almost no supply.
Sofia is yet among the most sought after destinations for outsourcing of the business. That is so, since the costs for renting and office in Sofia and paying for all the expenditures is quite low. It should also be mentioned that the number of skilled professionals is also impressive and that all of them are fluent at least one foreign language.
The offices of class A in Sofia that come with prime location are usually sought by companies from the high-tech sectors and the outsourcing sectors. The rental levels of the prime Sofia offices are between 13 and 15 Euros per square meter per month. For 2015 are expected to be released only three new buildings of the highest class A that met the highest standards. That is why there is an expectation for the rental levels of Sofia offices to go up.
The Prime Minister of Bulgaria is convinced that both the rightists and the leftists politicians in the country are doing their best for the accession of Bulgaria in the Schengen zone. According to the Prime Minister Boyko Borisov, the country is very close to getting into the passport-free travel zone.
During his meeting with the German Foreign Minister Frank-Walter Steinmeier in March, the Bulgarian Prime Minister Boyko Borisov gave a press conference, where he confirmed that he has explained to his colleague all the efforts made and further undertook the engagement to provide help in the realization of the gas projects.
The Prime Minister Boyko Borisov stated that Bulgaria has highly qualified labour force. He also stated that thanks to some great efforts from all parties there is a good political stability in Bulgaria.
The real estate market for the commercial and the office buildings in Bulgaria is showing quite an excitement since the beginning of this year. According to the real estate experts, the investors are looking towards offices and commercial properties as a result of the accelerated recovery of these markets that became effective last year. In 2014 assets that are worth 239 million Euros have changed their owners and most of the transactions were related to financial restructuring of the debts.
Since year 2014 and until that moment has been noticed a serious and lasting recovery on the Sofia office market with a growth of more than 40% in the acquired areas compared to the year before that. The offices in Sofia that were rented or purchased were over 154 000 sq. m, which is almost 30% up than the office premises in Sofia that were rented or sold two years ago. Currently the main engine that drives that need is the interest towards the offices of class A, which have easy to reach and very communicative locations, as well as all facilities that are required by the expanding international companies.
Upon visiting Sofia in the early spring, the German foreign minister Frank-Walter Steinmeier stated that Germany is open to talks on allowing Romania and Bulgaria to enter the passport-free travel zone of Schengen. The foreign minister further stated that the two countries have been members of the European Union since 2007 and have sought for a positive Schengen status ever since 2011. Until now that has gone with no success.
In one of his last visits to Romania, the president of Bulgaria Mr. Rosen Plevneliev also commented on the important control that Bulgaria offers as part of the external border of the European Union. The efforts of the country were stated to be very good, better than the efforts of many other European Union countries that are already members of the Schengen zone.
According to the President Rosen Plevneliev, Romania being with the new president Klaus Iohannis has made a serious progress in her fight against the corruption. He also said that Bulgaria has to catch up in that aspect. The founding nations of the European Union such as France and the Netherlands have urged Romania and Bulgaria to be stricter about tackling the corruption and securing their borders, before they join the Schengen zone.
The prognosis for 2015 made by almost all realtors working on the Sofia office rental market are for increased rental levels. According to the real estate agents from different consulting companies, the offices of the highest class A will be offered for rent at approximately 13 Euro/sq.m. Even if being the most expensive ones, these Sofia offices of the highest class A are still the ones in greatest demand due to their amenities and efficiency indicators.
The data provided by the realtors reveals that the large office buildings in Sofia only 4 % of the office premises are still available. It should also be noted that large offices in Sofia with more than 2000 sq.m are extremely hard to find. The prognoses for 2015 that concern the office market in Sofia are for an increased demand for office premises of the highest class A. The companies that show strongest interest towards the office market come from the outsourcing and the IT sphere.
In the beginning of March Bulgaria launched a national campaign in support of its accession in Schengen. According the Deputy Prime Minister for European Policies Coordination and Institutional Affairs Meglena Kuneva, the accession of the country in the travel free Schengen zone should become a national task. Bulgarians should be aware that Schengen is a synonym of security, economy and prestige.
The joint efforts of the Deputy PM, the Justice Minister and the Culture Minister resulted in the campaign “Bulgaria in Schengen. It’s Time!” The campaign was opened at the Archeology Museum in Sofia. In the video it is stated that the double standard concerning Bulgaria’s accession in the Schengen area is unacceptable.
The video comes in several language versions and presents Bulgarians from all spheres of life, smiling, with the national flag in the background. Upon launching the national campaign, the Deputy Prime Minister stated that the accession of Bulgaria into the Schengen zone will become a fact when the public opinion on that matter is united.
The realtors today often speak about interest towards the Sofia office market and increased number of the investors, mainly large international companies looking to outsource their business. In general the Sofia office market goes through lasting period of recovery and faces a positive trend ahead. The share of the vacant office premises in Sofia has fallen with nearly 30 % in the last quarter of 2013 to 26 % for the last quarter of 2014. That is so due to the strong interest towards the office premises of class A and the expansion of the international companies which have decided to outsource their business in Sofia.
The rental levels of the Sofia offices vary between 10.5 and 13.5 Euro/sq.m. and the number of available office premises is dropping down. The investments in office buildings for 2014 have increased and many office projects that were postponed are now being restarted. Bulgaria and its capital Sofia is now only provoking the interest of the companies that wish to start a business in the area but are also managing to keep that interest, which is expected to bring many new investments.
Last month it became clear that Germany keeps its cautious position over the Schengen Bid of Bulgaria and Romania. The German Chancellor Angela Merkel and the president of Romania met in Berlin to discuss the accession of Romania into the Schengen zone. Mekrel said that Romania is making progress towards entering the Schengen Zone, yet there is still no clearance when the accession in Schengen will happen.
Currently both Romania and Bulgaria are on hold as far as Schengen zone is concerned. Both countries are part of the European Union since 2007. The main reasons for postponing the accession include corruption, lack of political willingness, organized crime, lack of transparency on the different policies.
According to the Bulgarian Foreign Minister Bulgaria needs to be given a political signal, as well as a little confidence that the country is on the right path of Schengen accession. Minister Daniel Mitov further said that coordination is required between Bulgaria, Romania and Greece for all European Union regional projects. The Bulgarian Foreign Minister believes that Bulgaria will join the Schengen Area as that is the base for fighting against the threats and the terrorism. The politician said once again that Bulgaria has already implemented all technical measures that are needed for the Schengen membership and has done almost no mistakes as an external border of the European Union.
The real estate agents have recently stated that the rental levels of the Sofia Offices are among the lowest in the European Union. At the same time, the number of the available luxurious offices is strongly reduced. The main demand for offices of the highest class A in Sofia comes from the outsourcing companies. That is so as almost all prime office buildings in Sofia are almost 100 % occupied.
Since the beginning of 2015 there is almost no offices available in business buildings of class A, placed in good locations. The international companies are willing to relocate to Sofia city to make business thanks to many reasons. Among these reasons are the low costs for offices and the highly-qualified professionals that can work in the IT and in the outsourcing sphere.
In the entire European Union Bulgaria seems to be the most affordable office destination. That is so as the available offices of class A in Sofia could be rented between 13-15 Euro/sq.m. In case the demand for such offices increases, that will lead to increase in the rental levels, which however will not be significant. Currently, the number of the available high-quality office premises in Sofia is not sufficient for all the international companies that are willing to relocate their business to Bulgaria.
In a meeting with journalists, the Bulgarian Minister of Foreign Affairs Daniel Mitov said that Bulgaria and Romania have agreed to coordinate their positions as far as an accession in the Schengen area is concerned. By having unified position, the two countries are expected to be accepted more seriously and their achievements in meeting the technical criteria are expected to be accepted.
Several weeks ago Minister Mitov met with his Romanian counterpart Bogdan Aurescu, during a meeting between the presidents of Romania and Bulgaria. The politicians discussed the fact that the two countries are already acting as member states of the Schengen zone. Based on that Romania and Bulgaria will insist on clarification over the accession of the two countries in the border-free area of Schengen. Both countries do meet all the technical requirements, they have modern equipment and good control on the borders.
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