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Industrial Market Overview H2 2018

Date Published: 21/03/2019

  • The supply of modern logistics and industrial space in Sofia increased by 5% in the second half of 2018 and reached 963,000 sqm.
  • The demand drivers for logistics and industrial space were retailers & wholesalers (56%), logistics operators (20%), professional services (12%) and other companies (11%).
  • The average rental rates of modern logistics space remained stable in the second half of 2018. They were 4.7 euro per sqm for class A space and 2.7 euro per sqm for class B.

Investment Market Overview H2 2018

Date Published: 21/03/2019

  • The total value of completed investment transactions in the second half of 2018 was EUR 317 million, totalling to almost EUR 668 mn for the whole year.
  • About 57% of the volume represented deals with office assets, followed by 29% with retail. The remainder were transactions with development land, industrial properties and hotels.
  • Prime yields decreased insignificantly, compared to the first half of 2018. They were 8% for office space, 7.25% for retail and 9.5% - for industrial..

Office Market Overview H2 2018

Date Published: 22/03/2019

  • The supply of modern class A, B and C office space in Sofia increased by 3% in the second half of 2018. Thus, the total stock reached 2,111,000 sqm.
  • The total take-up, i.e. all leasing transactions on the market in Sofia, was 122,700 sqm in the second half and 188,500 sqm in 2018. In both 2018 and 2017, pre-leases dominated with 41% over the other transaction types.
  • In both 2018 and 2017, pre-leases dominated with 41% over the other transaction types.
  • The average asking rents for class A and B office space in the capital remained stable. Class A retained levels of 15 euro per sqm / month for CBD, 14 euro per sqm / month – Broad Center and 13 euro per sqm / month for Suburbs.

Residential Market Overview H2 2018

Date Published: 23/03/2019

  • Residential stock of newly completed projects in Sofia marked an 8% increase. The number of residential units grew to 8,870 (apartments / row or single houses), mainly concentrated in the Southern neighbourhoods and at the foot of Vitosha Mountain).
  • The shortage of completed quality projects maintained the surge in sales of residential properties under construction, representing 60% of the total deal volume in 2018.
  • Sales and rental prices maintained their levels.

Retail Market Overview H2 2018

Date Published: 23/03/2019

  • The total supply of modern shopping centres in the second half of 2018 remained at 400,660 sqm in Sofia but increased to 771,860 sqm at country level.
  • Modern retail space demand in the capital marked stable levels of absorption - 5,670 sqm during the second half of 2018, and 15,100 sqm for the whole year.
  • Prime rental rates in shopping centres and high streets in Sofia and the regional cities remained stable in the second half of 2018.