Retail and alternative assets


On the retail market - continues in the same pace. Supply and rent levels are stable in the malls and main shopping streets. The process of repositioning projects with unworkable concepts is continues. Two examples - in Q1 of 2016 is expected to finish the inner restructuring of one of the first malls in Bulgaria - City Center Sofia and Varna Mall Gallery will become a hospital.

However, the lull may be an indication of impending recovery of the investment market. Investor interest is lacking, as well as a quality products, which is a prerequisite for transactions in the coming quarters.

2015 also had relatively large transaction for the commercial segment - for Mall Markovo Tepe in Plovdiv and Varna Gallery in Varna.

Outside the main segments of the commercial real estate market, our capacity to attract investors in so-called alternative segments - health, social and cultural infrastructure, student housing, etc. is limited.

Currently this market is dominated by local investors because they know the market better. Foreign investors are unlikely to enter the market alone but rather in partnership with local companies.

Prospects for Development

The near future looks favorable for the commercial real estate market . In the absence of unexpected shocks, 2016 should be a year of more visible progress.

For companies in the region Bulgaria is stable and peaceful place for their business. However for global investors Southeast Europe is a region near points of conflict and resembles a challenge. Convincing them we are stable is a priority.

The forecast for this year is for small transactions up to €10 million. Local and opportunistic investors will continue to dominate. According to the expectations, the banks will exhibit more serious activity.

Sofia City Report H2 2023


  Investment Market The cautious behavior seen in investors in H1 2023 continued through H2 as well. The main reason for that seems to be the high cost of financing as interest rates for investors have reached 6.5 – 7.5% which basically melts down the potential return almost entirely. ...

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Sofia City Report H1 2023


Investment Market There was modest investment activity in the first half of 2023, with most deals focused on the office segment. The cautious behavior from investors can be explained by their expectation of global economic slowdown and a potential increase of NPL”s, which could provide opport...

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Sofia City Report H2 2022


A consistent pipeline for retail parks The total modern retail stock in Bulgaria amounts to over 1,17 million sqm, out of which 542,800 sqm operating in Sofia. With 815,000 sqm stock countrywide, the shopping centre segment didn’t see any new completions over the last few years and this tre...

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