According to the Dutch Ambassador Karel van Kesteren Bulgaria’s attempts to joint Schengen area will not be successful in the near future. He states that Bulgaria will enter the Schengen agreement at one point, but he is positive that this will not be soon. The Dutch Ambassador stated that the entry of Bulgaria into Schengen zone is a matter of trust and further said that the country will be ready for this new step once its politicians improve the situation in the country and unite, answering to the demonstrations in the country that are taking place for two months already. Thus, the border free Schengen zone remains a dream for the country of Bulgaria that is yet to happen, but not at that moment and not any time soon.
The Dutch Ambassador Karel van Kesteren also supported the statement made by the Ambassadors of France and Germany on the oligarchy model of the Bulgarian government – a policy that does not appeal to the European Union membership. At the end of December this year, under the Lithuanian presidency of the European Union, there will be new discussions whether Romania and Bulgaria shall enter the Schengen zone or not.
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.
Travelling to a country that is part of the Schengen zone when your own country is not part of the agreement could be difficult, but getting a Schengen visa is not impossible. In case that you want to visit Europe and see several of the countries that are part of the Schengen area, you should apply for a Schengen visa that allows for visits to many countries in Europe. The Schengen area includes twenty-seven countries and when you apply for a visa you need to write down on the application form which countries you plan to visit. In other words, you need to do some careful planning, before the trip to Europe starts. In the same Schengen via application form you will need to set the duration of the stay in each country and where you intend to stay, adding a proof of the accommodation. In case that you are not staying in a hotel and do not have a booking form, but you are staying with friends, you will need a letter from them and a copy of their passport.
Among the other documents that should be added are airplane tickets, bank statements for the last three months and a full itinerary. The application form is submitted to the embassy of the country that is the main destination of the trip, being the one that you will visit for the longest period of time. The application form and the information in the website of the embassy are often updated, so you should make sure that you have the latest version. Bulgaria and Romania are still not members of the Schengen zone, however they are expected to become members in the near future.
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.
In the end of June the Prime Ministers of Bulgaria and Romania, Mr. Plamen Oresharski and Mr. Victor Ponta had a second meeting, after they participated in the official opening of Danube Bridge 2 near the town of Vidin. The two Prime Ministers met in Sofia at the Council of the Party of European Socialists and among other issues such as the cross-border cooperation, gas interconnectors and Nabucco West, they managed to discuss the accession of Romania and Bulgaria in the Schengen zone. They coordinated their positions, aiming to form a common and stronger stand before their European partners. The two further arranged a meeting the early fall. The Prime Minister of Romania pointed out that the two countries should join forces rather than competing and trying to prove that one country is better than the other.
Hopefully, the Schengen accession will soon be a fact, as in the end of December under the European Union presidency of Lithuania, there will be new discussions whether Romania and Bulgaria shall enter the Schengen zone or not.
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.
On 1st July this year Lithuania took over the presidency over the European Union, which is done on a rotating basis. Authorities from the country stated that they do not feel optimistic on the enlargement of the Schengen zone with new member states such as Bulgaria and Romania. The accession of the two countries in the borderless Schengen area is already quite protracted and there is no clear sign until when shall that be a fact. The permanent representative of Lithuania to the European Union, Mr. Raimundas Karoblis stated that nothing could be promised for the joining of the two countries in the passport free zone. At the same time, the European Commission confirms that Bulgaria as well as Romania are ready to enter Schengen and have been ready ever since 2010. Even so, several other countries that are members of the Schengen agreement are still blocking the bid of the two countries due to various reasons such as poor control on the borders, no progress and corruption.
Mr. Raimundas Karoblis further said that the entry of Romania and Bulgaria into Schengen zone will be part of his country presidency priorities, but the two countries shall make efforts and show progress and results. According to the diplomat, agreement shall be looked upon in the beginning of December when the Justice and Home Affairs Council will take a decision whether to accept Romania and Bulgaria in Schengen or not.
The number of available offices in Sofia has dropped, since the interest towards them is serious for the first time after the start of the global financial crises. The Sofia offices that are now available are around 20% from the total number of offices in Sofia or around 350 000 sq.m. Around 70% of the available office premises in Sofia are positioned in business buildings outside the center of the capital. Since the beginning of the year have been rented almost 76 000 sq.m of office premises which is an increase with 150% compared to the first half of 2012. The companies which are in search of offices in Sofia come from the outsourcing sector mainly. These are large international companies that are coming to Sofia for the low rental levels, the easy process of company registration in Bulgaria and the low taxes. These companies are renting the offices of class A, which offer many facilities and modern extras.
According to the real estate specialists, there are 18 office centers in Sofia of the highest class, which correspond to the international requirements for the quality of construction, the easy access with automobiles and public transport, etc. The offices that the investors like most are set along “Tsarigradsko Schousse” Blvd. and “Bulgaria” Blvd., as well as near the Sofia Airport and the ring road. The rental of Sofia offices varies from 9 to 12 Euro/sq.m depending on the location.
A week or two ago, the Prime Minister of France Jean-Marc Ayrault had a meeting and talks with the President of Romania Mr. Traian Basescu. During that meeting he stated that Romania and assumingly Bulgaria could be accessed in the Schengen zone in two phases. He said that the first borders to be lifted are expected to be the air border controls, followed by the land border controls. According to the Prime Minister of France, his country shows support on the entry of Bulgaria and Romania and stated its opinion on several occasions. He stated that the integrity and the overall security of the European Union borders should be strengthened and the external borders should be well protected, as all countries that are members of the Schengen zone should fight against crime and corruption.
Bulgaria and Romania were supposed to enter the Schengen area in March 2011, when their accession was put off by France and Germany, two of the leading European Union member states. In September the same year, the Netherlands and Finland also blocked the bid for entry of the two countries, asking them to improve their results in the fight against organized crime and corruption. The new decision on whether the Bulgaria and Romania to enter the Schengen area will be taken not sooner than this December.
According to real estate company Colliers, in the first six months of the year were rented more than 75 000 sq.m. of office premises. This means that the number of the available offices in Sofia is decreasing and has dropped with 12% for that period. Currently, the available office premises in Sofia are around 348 000 sq.m. The research shows that there is a serious interest by many international companies and outsourcing companies which are looking for offices of high class in Sofia city. At the same time, year 2013 started with low level of activity in the construction of new office premises. The Sofia office buildings that were completed in the first half of the year had total area of 34 000 sq.m. and at the same time no new office projects were started. Currently are being constructed 190 000 sq.m of office premises, which will be completed next year. These offices will be part of two office centers – Bulgaria Tower on “Bulgaria” Blvd. and Capital Fort on “Tsarigradscko Schousse” Blvd.
Sofia offices that are on demand are those with good location, placed in office centers and business centers with many extras. The companies which are looking for offices in Sofia city work in the sphere of software, pharmacy, trade, call centers. The two large companies that entered the office market in Sofia are Covance Medical in Bulgaria House office center and Servantes Institute in Sveta Sofia business center.
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