Real Estate Market

In 2024, the investment activity in Bulgaria’s commercial real estate market showed an upward trend, with total acquisition volume exceeding EUR 360 million. Technology companies emerged as key players, concluding several significant transactions. Their interest, alongside traditional investors, contributed to the sector’s resilience compared to previous years, according to data from a leading consultancy firm.

The office segment remained the most active, accounting for over 51% of all deals. Notable acquisitions were also recorded in the retail, hospitality, and industrial segments, including portfolio transactions.

Several landmark deals were completed in Sofia during H2 2024. Trinity Capital and Hust Invest successfully acquired Park Center shopping mall, while Fantastico finalized the purchase of Arena West, where a new retail store is planned. Meanwhile, the expansion of Burgas Plaza Mall is in advanced development, with completion expected by 2026.

Retail Market

In the second half of 2024, the trend of expanding retail parks continued, while no new traditional shopping malls were delivered. A total of 26,000 sq.m of new retail space was added to the market. Across Bulgaria, there are now more than 57 retail parks with a combined gross leasable area (GLA) exceeding 573,700 sq.m.

The Sofia market remained stable, with local retail parks offering around 87,370 sq.m of GLA and maintaining a high occupancy rate of 99%. Nationally, one new retail park – Retail Park Parkmaxx in Plovdiv (21,000 sq.m GLA) – was launched, and Retail Park Veliko Tarnovo was expanded by 5,000 sq.m.

Future developments in Sofia include new retail projects totaling 187,458 sq.m GLA, expected to open by late 2025 or early 2026. Additionally, 100,700 sq.m of retail space is planned in regional markets (outside the capital), with anticipated delivery between 2025 and 2026.

Industrial & Logistics Sector

At the end of 2024, the industrial and logistics sector saw the completion of new developments totaling approximately 45,000 sq.m, bringing the annual delivery to around 104,000 sq.m. Traditionally, most industrial properties in Bulgaria are developed for owner-occupation.

Gross take-up during H2 2024 reached 53,000 sq.m, with net take-up amounting to approximately 42,000 sq.m. The vacancy rate remained extremely low at just 1.6% of total supply.

Prime headline rents for newly built class A warehouse space in strategic locations remained stable at around EUR 5.4/sq.m/month, showing no significant changes from the previous quarter. These rent levels are expected to hold steady in the short term.

The total supply of warehouse and logistics space in Sofia exceeded 2.08 million sq.m by the end of 2024. An additional 370,000 sq.m of industrial space is currently under construction in the capital, with completion expected by the end of 2025 or early 2026.

The report can be downloaded here.