28/03/2008

This year, large new office developments to be delivered on the market, in which tenants will be able to rent some 1,000-2,000 sq m spaces, amount to just 55,000 sq m, according to a survey of Forton International, the real estate consultant. The firm says a bigger volume of commercial space is to be built by mid-2009 and this will perhaps put an end to rental rises.

Similar forecasts have been given by other large consultants on the market. According to Colliers International, supply will peak in 2009 when several major projects are expected to be delivered, including Serdika Centre (35,000 sq m), Megapark (59,000 sq m) and the first phase of Sofia Airport Centre. Before that, however, demand will continue to exceed supply.

This market situation already has repercussions on office rents. In a few business locations with availability of space, rents are rising. The maximum asking level for the area of the airport in Sofia has soared to EUR 18 per sq m per month from EUR 16. A change is seen also in the maximum levels for the area of Mladost where they now reach EUR 18 per sq m. A new development near the Business Park Sofia offers space for rent from EUR 16 to EUR 18 per sq m per month, levels also found in Mladost 1 (near Tsarigradsko Shosse Blvd.). Such is the "wholesale" asking rent for a new building of some 2,700 sq m.

A rise in office rents has been registered also on Tsarigradsko Shosse with asking levels of up to EUR 18 to EUR 22 per sq m per month in places.

In the central parts of the city, prices are also twitching as the offering has reached levels of EUR 50 per sq m for small premises in existing building. Yet, most of the rents in the area vary between EUR 22 and EUR 30 per sq m per month. The spaces offered in this range are relatively small in size - between 120 and 250 sq m.


Source: Index Imoti