site.btaIncreasing Demand on Bulgarian Market for Office Space
The market for office space saw an increase in demand in the first half of 2022, resulting in 90,470 sq m of gross leased space (which is all transactions), up by 29% from the first half of 2021, according to a report by Colliers.
Most of the transactions (38%) were due to relocations, 34% to contract renewals, 14% to expansion of companies already present in Bulgaria and 10% to leases of space in under-construction phase.
Demand was driven by IT and outsourcing companies (44%), followed by companies providing professional services (29%), pharmaceuticals (13%), trading (5%), financial services (4%) and media (3%).
Supply of modern office space in Sofia grew by 2% and the total area reached 2,603,000 sq m.
The average vacancy rate in Sofia has remained unchanged since the beginning of 2021 at 16-17%.
The same applies to average offer rental levels, which remain at EUR 14 per sqm for class A offices.
Further upward pressure on rental prices is expected in the short term due to rising construction and fit-out costs, the company said. A trend that has started and will continue to be seen is the construction of co-working spaces in office buildings in response to the emerging hybrid working model and the dynamic space needs of tenants.