Bulgaria’s economy delivered another above average quarterly performance at the end of 2023 with the ninth highest growth rate in the EU. Solid domestic demand, driven by private households, handily offset weakness in external demand. Key leading indicators during the first three months of 2024 suggest that economic performance at the start of the year would likely be in-line with recent form.
Office Overview
The office market in Sofia registered moderate leasing activity during the first quarter of 2024 driven by renewals and some relocations. Vacancy remains stable, with prime projects mostly fully occupied. Prime asking rents showing an increase at the start of the year.
Retail Overview
The overall volume of new modern retail openings in the quarter weakened significantly to about 20,000 sqm from 58,000 sqm in Q4 2023. Near 75% of this space was set up in retail parks. New retail park offerings are in the pipeline with occupier demand from local and international retailers. Rents show some increase, mainly for shopping centres and on the high street.
Industrial Overview
Sofia’s market for light industrial and warehouse space slowed down the tempo in the first three months of 2024 as take-up narrowed on the back of weaker demand and the volume of imports. Development activity remains solid with rents stable in Q1.
