Category: blog

Revival of The Sofia Office and Business Market

Mina Boycheva 22/01/2016

The office and business market in Sofia is in the process of revival. According to the real estate market analysis of leading companies working in the sphere, almost 50 % of the office buildings under construction are already rented out. For the other 50 % of office buildings under construction are being led serious negotiations. The increased demand towards Sofia offices of class A for rent and the stable rental levels in the city makes the office building investors confident.

The office and business market in Sofia is in the process of revival. According to the real estate market analysis of leading companies working in the sphere, almost 50 % of the office buildings under construction are already rented out.

In spite of the numerous new projects for office buildings, the demand for class A offices in Sofia is serious and the available office spaces at the moment remains limited. That is the reason why so many companies are now signing office rental contracts for office buildings that are still under construction. The facts show that in the third quarter of 2015 more than 167 000 sq.m of offices premises in Sofia were under construction and half of them came already rented.

According to the real estate experts, this office situation will remain the same in the next two years. The serious interest will be from the BPO and IT companies. Currently are being planned office buildings with completion in 2018 and total area of 450 000 sq.m.

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Bulgaria Will Host Science & Innovations Forum During the EU Presidency

Mina Boycheva 22/01/2016

During her EU Presidency in 2018, Bulgaria will host the international forum on science and innovations. This was agreed between the European Commissioner for Research, Science and Innovations Carlos Moedas and the Bulgarian Deputy Prime Minister for European Policies Coordination and Institutional Affairs Meglena Kuneva and was announced by the press office of the Bulgarian Government.

During her EU Presidency in 2018, Bulgaria will host the international forum on science and innovations.

According to the two politicians, we all live in a dynamic world with faster developing economies and the EU needs innovations more than ever before so that it can preserve its competitive power. The European Commissioner and the Bulgarian Deputy Prime Minister further discussed the various opportunities given by the European funds for the development of the science and innovations in the member states, which are included in the current programme period.

The two politicians also discussed the different opportunities provided by the Bulgaria’s membership in the Schengen area and the overall policy on inclusion and strengthening of the newly integrated member states, as the European Commissioner decided to uphold the support of the European Commission to these demands of Bulgaria.

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Last Quarter of 2015: Serious Demand for Offices in Sofia

Mina Boycheva 18/01/2016

The last three months of 2015 were very busy on the office market in Sofia. The demand for Sofia offices of class A was not only diminishing in the end of the year, but the interest was actually getting stronger. Several brand new office projects have also started. In the first nine months of the last year many new office projects in Sofia have started. According to the real estate agents that trend is about to proceed with the same pace.

The demand for Sofia offices of class A was not only diminishing in the end of the year, but the interest was actually getting stronger.

The most important office project that was completed in Sofia in the last three months of the year is the completion of the Capital Fort project and the signing of the rental contract for the largest office space available – the one with Visteon company for 7300 sq.m. of office space in Sofia. In the last quarter of 2015 started the construction of the fourth phase of Expo 2000 complex, as well as the new Bernard Investments project on “Tsarigradsko Schousse” Blvd.

Besides the serious investment in new office complexes in Sofia, there is still a serious demand for offices in the capital of Bulgaria. According to the statistics, the planned office buildings up to 2018 will have total area of 450 000 sq.m. Currently the rental levels are stable and vary around 12.5 Euro/sq.m.

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Bulgaria’s Security is European Security

Mina Boycheva 18/01/2016

In the end of 2015, the Bulgarian Deputy Prime Minister for European Policies Coordination and Institutional Affairs Meglena Kuneva stated that the security of Bulgaria is something that all should be interested in. She stated that the Schengen area is not an abstract idea for the Bulgarians. The Bulgarian Deputy Prime Minister was talking at the Fourth EU – Southeast Europe Summit that was organized by “The Economist” in the Bulgarian capital Sofia.

Bulgarian Deputy Prime Minister for European Policies Coordination and Institutional Affairs Meglena Kuneva stated that the security of Bulgaria is also European security.

According to Meglena Kuneva, in her role as Deputy Prime Minister, the country has strong support on the part of business. In case the Schengen Area is kept closed for Bulgaria, that will mean that Bulgaria would have to rely on its own skills to protect itself. Bulgarian Deputy Prime Minister for European Policies Coordination and Institutional Affairs Meglena Kuneva further stated that the security of Bulgaria is also European security.

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Sofia Office Market in the end of 2015

Mina Boycheva 28/12/2015

In the last 12 months Sofia office market became a witness of several new office building projects emerging on the market. The construction companies became confident enough to start investments in new office buildings due to the great demand for such office premises in Sofia and the stable rental levels.

In the last 12 months Sofia office market became a witness of several new office building projects emerging on the market.

In the capital Sofia has been completed the largest office project for 2015 – Capital Fort and was signed the largest rental deal for 7300 sq.m of office area. In the second half of the year started the construction of the fourth phase of Expo 200 and also the construction of the new project along Tsarigradsko Schousse Blvd . – Bernard Investments. This means that the planned office buildings the construction of which has already started and which will be completed by 2018, reach total area of 450 000 sq.m. The rental levels of Sofia offices remain around 12.5 Euro/sq.m. for the offices of class A.

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Is Schengen Closing?

Mina Boycheva 28/12/2015

Until very recently, Schengen Zone was perceived as the main engine for the European Integration. With the crisis that started in 2009, many important changes in the European Union legislation happened. Since the refugee crisis outbreak, there was one integration ship’s mast that was visible and it was associated with the euro area. The crisis with the refugees placed the existence of the European Union to a very serious test. And now as the threat is not over yet, a new integration ship is to be seen – that of Schengen. The reason for that lies in the terrorist attacks in Paris, dating 13th November, when 130 innocent people have lost their lives and many others were injured.

Because of the refugee crisis, the Schengen zone had a very central stage in the disintegration forecasts. And the terrorist attacks in Paris changed that situation to a significant level. The feelings of solidarity with France made way for the integration deepening in the sphere of counter-terrorism and security within Schengen.

Asa conclusion from the meeting, it became clear that Schengen is not falling apart but is integrating.

During the emergency meeting of the ministers of justice and home affairs on 20th November, it became clear that the answer to the terrorist attacks should come from Europe as a whole and not from the individual nations. According to the European program for security, that should be based on a mutual trust. That however, is bad for the countries that are outside the Schengen area, as these countries are either not ready or there is no trust in them. Bulgaria is not a member of the Schengen zone, even if it protects the outer borders of the European Union and is technically ready to become a member for many years now.

The ministers gave a task to the European Council to prepare a proposal for changing the code on the Schengen zone borders. This means that there will be a legal ground on which to be made a systematic control of EU citizens and collection of biometric information. The ministers also requested for widening the mandate of the European border agency Frontex and for establishing regional information exchange platforms with the Western Balkans states. This means that there is no trust in Romania and Bulgaria, as the two states remain outside the Schengen zone. And even if the Schengen information system is working in Bulgaria, the system is not fully opened to the country.

Yet, as a conclusion from the meeting, it became clear that Schengen is not falling apart but is integrating.

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Sofia Offices Rental Levels Will Slightly Increase During The Next 3 Years

Mina Boycheva 21/12/2015

The rental levels of Sofia offices are expected to go up in the next three years according to the association of the owners of business centers in Bulgaria. In a recent interview, the chairperson of the association stated that year 2015 was very active for the office market in Sofia with a serious demand for spacious office premises. That is so as the large international companies are not only staying in the country, but also they are enlarging their activities, hiring more employees and thus in need of more space.

The rental levels of Sofia offices are expected to go up in the next three years according to the association of the owners of business centers in Bulgaria.

The offices in Sofia that have been rented in 2015 were much larger than the ones rented 3-4 years ago. In 2015 there were deals signed for the rental of Sofia office of 7000 sq.m. Other serious deals signed were for 3500 sq.m in the Sofia Airport Center, as well as in the business centers Expo 2000, East Trace Center, etc. The fact is that when one company moves to a bigger office in Sofia, her former office is immediately taken by another company. This means that the market goes up and that there is positive development for it ahead of time. That is why several new projects for office buildings are being planned and are expected to be implemented. The current rental levels vary from 10.5 Euros to 13 Euros, but there is prognosis for increase in the rental levels to 14-16 Euros/sq.m in the recent years.

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Why is Schengen In Partial Comatose According to the EU Commission President

Mina Boycheva 21/12/2015

In a recent speech at the European Parliament in Strasbourg, Jean-Claude Juncker – the Commission President of the European Union warned the public that the Schengen zone is in a “partly comatose” stage. Juncker further stated that if that eventual collapse of the Schengen Area becomes a fact, this might have negative effect and bad political consequences for the European Union and the common currency – the Euro.

After the terrorist attacks in Paris, several temporary border controls have been reinforced in several EU member states in an attempt for the migration flow to be diverted.

Juncker stated that if Schengen zone fails, than the single currency of the union will make no sense. The travel free Schengen area, of which Bulgaria is still not a member, is facing the impact and the consequences from the terrorist attacks in Paris and the migrant crises that is lasting for such a long period. The borderless Schengen area has been under serious pressure as it was revealed that several of the attackers moved freely throughout Europe, claiming to be refugees from Syria. According to the Commission President, the reintroduction of the checkpoints at the national borders between the member states of the European Union will have immediate and direct effect on the common European Union currency.

After the terrorist attacks in Paris, several temporary border controls have been reinforced in several EU member states in an attempt for the migration flow to be diverted. The Commission President of the European Union further stated that we all have to keep the spirit that stays behind the Schengen zone.

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Companies Looking For Off-Plan Office Buildings

Mina Boycheva 18/12/2015

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.

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.

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.

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David Cameron and Bulgaria as not Part of the Border-free Schengen zone

Mina Boycheva 18/12/2015

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.

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.

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.

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