News

Vacancy levels for office space in CBD reach one-digit figures

A slight upward pressure on rental levels is expected as demand catches up with supply. One of the major factors characterizing demand, which is also expected to influence demand trends in the future, is the offshoring of activities to Bulgaria.

Rental levels for Class A office premises averaged EUR 12.5/m2/month in 2005.

Colliers International released this information and more in its semi-annual real estate report, which is based on ongoing analysis and highlights trends in the Sofia office market.

Supply outpacing demand in the residential market
After many years of supply domination on the Sofia residential market, during the second half of 2005 there was a major turn toward a demand-driven market. Construction permits of approximately 1 million m2 are estimated to have been issued in 2005, with the better part of them for middle-class buildings with average total built-up area of 4,000 - 6,000 m2 per project.

In general, sale prices in prime residential areas remained in the range of EUR 820 – 1,650/m2 with peaks in the city center. In the middle and upper-middle market rental levels have retained general stability. For unfurnished apartments rents are in the range EUR 5-8 per square meter per month, and for furnished units they are in the range EUR 7-12 per square meter per month.

This is a preview of Colliers’ recent market research findings. The full content of the office, residential and retail half year reports for the second half of 2005 is published on Colliers website.

In March, the 2006 Colliers SEE Real Estate Review, offering a comprehensive analysis of the office, residential, industrial and retail markets in Bulgaria, Serbia and Montenegro, Greece, Croatia and Romania, will be available to order. For more details, please contact Colliers International, Marketing Department.