News

Half of the office areas are on the market are being rented before being built

29.03.2017

 

In the second half of 2016, class A offices take up 70% of the offered new spaces in this segment.

 

The interest is generated mostly by outsourcing and IT companies, whose shares in office market transactions are now increasing a lot – from 60% in the first half of 2016 to 74% in the second.

 

The requirement still include modern, functional areas allowing better workplace comfort, communicative location with public transportation access, restaurants, sport centres, etc. In result of the high demand for this type of offices, the net acquired areas in A and B class project buildings in Sofia records a 26% annual growth.

 

The city areas with highest demand and increased concentration of new projects are the centre and wide centre of Sofia. A new region with planned office buildings is formed between Nikola Vaptsarov Blvd. (Office Park Expo 2000) and Cherni Vrah Blvd. (Paradise Center). It is characterised with high potential because of the many free land plots, good infrastructure and public transportation access including metro. Other areas with similar advantages are the ones around Capital Fort and Business Park Sofia.

 

In the second half of 2016, offer rent prices of buildings into exploitation remain fairly stable. For class A projects prices are 13.5 EUR/sq.m for city centre and around 12 EUR/sq.m for wide centre. Higher offer levels of around 14 EUR/sq.m are registered for under constructionoffice buildings. Planned high quality of office areas and good locations are the reasons for the higher price.

 

The determining role of outsourcing and IT sectors in developing the office market is expected to be kept in the future. In response to the high demand, six new projects with total area of around 115 000 sq.m are expected to show up on the marked by the end of 2017. The trend with renting offices in under constructionbuildings will go on until the supply covers the demand. The requirements of companies related to social environment and consistent with international standards high quality construction are increasingly going to reflect on projects offered on the market.

 

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