A growing number of international and local companies are now looking for offices of class A in new business centers that are still in the of-plan stage, waiting for the start of the construction. That is so, as there are not many large offices available in Sofia to meet the needs of the outsourcing companies that expand their business in Bulgaria. The office projects that were released in 2015 like Capital Fort and Trade Center Europe are already operating and a great percentage of their premises has been rented out.
On the grounds of that serious demand for offices of class A in Sofia, many new office projects have started and the office premises that will be ready by the end of 2015 are believed to reach 100 000 sq.m. The construction companies are stimulated to build new business centers in Sofia as many international companies are relocating their offices in search of larger and more spacious working premises. These outsourcing companies are looking for bigger offices of highest quality.
Currently, the available office space in the most sought after office buildings in Sofia is only 2 %. The rental levels remain the same, though there is a tendency for the rental price to go up.
In a recent visit in Bulgaria the UK Prime Minister David Cameron has visited the country’s border with Turkey, which happens to be an external border of the European Union. David Cameron urged the other nations to follow the example of Bulgaria and said that the countries from the European Union are facing a flow of migrants and should make efforts to control their borders.
According to Cameron, it is very important for Europe to have strong external borders by sea, air and land like the one Bulgaria has with Turkey. In 2015 around 27 000 migrants came through the 150 mile border between Turkey and Bulgaria, which is still not part of the travel free and border free Schengen but acts as an external border of the European Union.
The countries from the European Union are facing an increasing influx of migrants and they should learn from the Bulgarian efforts to keep the external controls, said the UK Prime Minister David Cameron at the border with Turkey. The states of the European Union have agreed to take emergency action in order to shore up the external borders of the union with stricter control.
The high-quality office premises in Sofia have been running out for quite some time and as a result, the rental prices started increasing reaching pre-crises levels. This means that the prices of the class A office premises in Sofia are heading towards the levels 14-16 Euro/sq.m. Due to the lack of supply, many companies are now ready to get offices in off-plan business centers and wait for them to be completed.
Throughout 2015, the office demand in Sofia has increased by 15-20 % with almost no supply at all in the center. According to the data, the number of the available offices in Sofia in the middle of 2015 has dropped to 25 % and to 2 % in the most sought after places in the capital of Bulgaria. Among the most desired business zones in Sofia are placed around the boulevards “Tsarigradsko Shosse”, “Cherni Vrah” and “Dragan Tsankov”.
The recently completed business center Capital Fort, which is also the tallest building in the country, is renting offices fast. These companies are mainly in the high technologies and the IT sectors, as well as the outsourcing. Under construction is the Trade Center Europe near Sofia Airport, where 50 % of the office premises are already rented out. The office market in Sofia is being driven by large companies looking for more spacious office premises of a class A quality.
Schengen is a dream about Europe living with no borders and no passport controls. During the Justice and Home Affairs Council in 9th October 2015, the Minister of Interior and the Deputy Prime Minister for Coalition Policy and Public Administration Rumyana Bachvarova stated that Bulgaria becoming a member of the visa free Schengen Area is a matter of security for the entire European Union.
During the sessions of the EU Justice and Home Affairs Council, the Luxembourgish Minister of Foreign and European Affairs Jean Asselborn stated that he wants to thank Bulgaria for all the efforts made in the protection of the external border of the European Union, even if not being a member state of the Schengen zone. The Minister of Interior of Bulgaria stated that today Bulgaria’s joining the Schengen Area is a matter of security of the entire EU. She further stated that the external border management of Bulgaria was directly related to the most recent challenges to the EU connected with migration processes. She stated that this requires coordinated, joint, and collective response on the part of all EU member states and that Bulgarian cannot adequately contribute to joint efforts in this direction as it is still not part of the Schengen Area.
If Bulgaria is a member state of the Schengen Area, the county will be in the position to use the full set of instruments of Schengen legislation which will lead to more comprehensive prevention – checks on the Schengen Area visas, proper usage of the Schengen Information System, etc. Since joining the EU Bulgaria has managed to ensure a serious protection of the EU borders, making the needed efforts despite the limited access to such systems and the limited resources of the country.
The real estate agents have recently stated that around 250 000 sq.m of office premises are to enter the Sofia market by 2017. Approximately one third of these were planned to be opened until the end of this year. Serious activity is found at the projects for Sofia office buildings and many of them are under construction. The first six months of 2015 were characterized by very low levels of class A office availability in Sofia – less than 4 %.
The serious activity on the office market in Sofia is due to the great number of outsourcing companies that are moving their business to the capital of Bulgaria. Most of them are international companies working in the sphere of outsourcing and in the IT sector. These companies are paying between 10.5 and 12.5 Eur/sq.m for Sofia offices of class A and another 2 to 3 Euro/sq.m for the maintenance of these offices. The expectation of the real estate agents is for these levels to remain the same at the beginning of 2016.
Just before the EU summit in October, the Deputy Prime Minister of Bulgaria Meglena Kuneva raised the question about Bulgaria and its membership in the Schengen area. She stated that the fact that Bulgaria has not joined Schengen several years ago along with its entering the European Union and today that is not only a problem for the country, but also a problem of the European Union. According to the Deputy Prime Minister, it is of high importance for Bulgaria to receive a date, no matter when the accession will happen, as it is the horizon that matters.
Bulgaria not being part of the Schengen security zone of the European Union puts the country in the position of no man’s land. This position makes it impossible for the country to take care of its security and for the European security. Bulgaria does not know whether to contribute to the Schengen improvement as it does not know when it will join, and yet the country cannot belong to a different alliance, as it has already committed to this one.
Every 6 out of 10 companies that are operating on the territory of Sofia are looking for office premises larger than 500 sq.m. The companies working in Bulgaria that are most active in the search process are the coming from the IT sphere. Often, some of the outsourcing companies have two or three offices and they take steps towards setting all their employees under one roof for better expenses optimization and more productive communication. The other companies that show interest in the offices of class A in Sofia are new to the local market and usually they start with up to 50 employees, to increase their number within an year and start looking for larger offices in Sofia.
Sofia office market can provide available offices of class A with area of up to 500 sq.m, yet there are not many offices of the same quality in Sofia above 1000 sq.m in size. Several large office projects are about to be released in Sofia next year, which is good for the companies and the business. The rental levels of the Sofia offices of class A run between 10.5 and 12.5 Euro/sq.m. and 2-3 Euro/sq.m for the maintenance fee.
In early October the President of the European Council Donald Tusk stated that Bulgaria is may be the best example of how the borders should be protected. He further stated that Bulgaria is ready to become part of the Schengen zone. Bulgaria is bordering Greece and Turkey, as well as Macedonia, and these countries are under great migratory pressure. Yet, Bulgaria still manages to protect its borders well.
The President of the European Council further stated that the borders of Bulgaria are also borders of the European Union. That is why, in his words, the country is ready to become part of the travel free Schengen zone. In fact, many politicians and people from abroad feel that Bulgaria entering the passport and visa free Schengen area should have happened long time ago.
The country still needs to make sure that all judicial reforms are mad and the fight against the organized crime and the corruption is still strong. Along with Romania, Bulgaria has hoped to enter the Schengen area in March 2011, yet this was postponed by several members of the alliance due to concerns associated with the security situation and corruption levels. The two Balkan states are still waiting.
Throughout 2015, the companies that have decided to make business in Bulgaria have shown interest towards larger office premises situated in office buildings of class A. This comes as a result from the good expectations of the companies in connection with the future situation of the economics in Bulgaria, the region and the European Union in general.
The companies looking for offices in Sofia are focused on office premises of 500 sq.m (or more) where some of the outsourcing companies are looking for Sofia offices of 1000 sq.m. The companies that are on demand of such large office premises operate in the IT and in the outsourcing sector. They are usually relocating since their business is growing. Yet, the office market in Bulgaria is also attracting new companies that are planning to open their first office in Sofia. There is a serious interest towards unification and getting all office branches of one company under one roof aiming optimization of the expenses and better communication in the team. Approximately 80 % of all requirements for offices in Sofia come from companies that plan to start working with up to 50 people as staff.
At first Romania and now Bulgaria are slowly abandoning their hope to receive an invitation to join the passport-free travel zone of Schengen area. The admission of the two countries is on hold for many years now, though both states have proved their technical and border readiness to become part of the Schengen zone. The European Council sessions have put on hold all discussions concerning the admission of Romania and Bulgaria into the Schengen area and the expansion of the Schengen area in general.
Romania and Bulgaria have hoped to join the borderless zone since 2010. Through the years several nations have opposed the joining of Bulgaria and Romania, mainly Holland, Germany and Finland. Their reasons for that were concerned with the serious corruption issues that the two countries were believed to have. Yet, both Romania and Bulgaria are meeting the technical criteria for entering Schengen and for controlling their borders, including the borders with the countries that are not part of the European Union.
According to the Romanian political analyst Cristian Inteanu, the immigrants’ crises have caused serious issues and will influence the perpective of EU states over the future extension of the Schengen space. As the experts said, Romania and Bulgaria will be allowed to the Schengen area, if that will strengthen the eastern border of the European Union.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.