The office market in Sofia in a good place

The market of business properties and offices in Sofia is at a good place right now. In the year of 20133 Bulgaria has attracted 23 million Euros investments in the sector of the office premises. At the same time Sofia office premises provide 8.25 % return on the investment. While the construction of offices has still not reached the levels reached before the crises from 2008, the number of the constructed office buildings in the period 2008 – 2014 is significant. At the end of 2013, Sofia city was in the position to offer to the investors 1.7 sq.m of available office space, which however is far behind the office market growth in other European capitals like Budapest, Warsaw and Prague.

The issue that some international companies have with the office buildings in Sofia concern the fact that not all office buildings correspond to the Western European requirements for standard. According to the Austrian newspaper “Der Standard”, the Bulgarian office market is lacking enough office premises of a high standard that correspond to the best practices and requirements of the international companies. Currently, the office rental levels in Sofia city are among 12 – 14 Euro/sq.m, which is a drop in the office rental levels compared to year 2007 when they have reached 20 Euros/sq.m. The good news here to be mentioned is that the construction companies are now looking for projects of highest quality, where the available office premises are corresponding to the needs of the outsourcing companies.