The interest towards the Bulgarian property retail space sector continues to drive the construction of new shops and retail spaces. This is result of the constantly increasing demand and insufficient supply of retail and business spaces. Both small and large premises are high in demand. Rental levels in Sofia are between €12 and 25 per sq.m per month. The highest asking prices achieve €120 per sq.m. per month and include best locations and condition of premises.
There has been a 10-15% increase in the rental levels compared to 2007. The prices in Varna and Plovdiv are similar to those in the capital. A shop in the centre of Varna and Plovdiv can be rented at prices between €15 – 30 sq.m. per month. The development of large scale retail, office and entertainment project is Sofia (Mall of Sofia, Stroytown and Sky City) and later on in other major cities will have significant effect on this segment of the Bulgarian property market.
Sale prices of office and retail spaces vary significantly considering the immaturity of the Bulgarian property market. Prices in Sofia range from €400 to €3,500 per sq.m. Similar price ranges have been achieved in major city centers in Bulgaria – Varna, Burgas and Plovdiv. Total area with retail spaces in Sofia currently under construction is about 205,000 sq.m. and 130,000 sq. m. in Plovdiv.
Despite its significant growth this segment of the Bulgarian property market is still unsaturated. Not surprisingly most major retail operators still prefer to build their own centers than to rent.