According to Bulgarian property investment experts from Cushman & Wakefield, almost half of the newly planned offices for the next three years in Sofia might suffer a lack of renters. That was announced on the recently held assembly on the topics of commercial properties, organized by foreign real estate advisors.
The forecast is based on Cushman & Wakefield’s data for all administrative buildings under construction or project. They claim that the total area of these developments is more than 1.52 million sq. m, which will lead to a triple increase in the offered space for the next three years. The demand, however, will increase with much slower trends.
The British advisors estimate the demand increase at 20% which is expected to lead to 200 000 sq.m rented office premises, compared to last year’s 160 000 sq.m. Based on that figure, they expect demands for 240 000 sq.m next year and 290 000 sq.m in 2010. Other real estate advisers also share this opinion, stating that Sofia’s property market cannot bear more that 1 million sq.m new office space.
On the other hand, Colliers International expect moderate trends in equalizing the supply and demand. They reminded that although there are many planned projects, many of them are likely to be postponed or canceled. They believe the expectations for new developments are overrated. After all, it seems that Sofia property investors have proven to experience no serious obstacles selling their developments.