The office space market outside the capital continues to develop steadily, with demand from companies in the IT and professional services sectors remaining the main driver.
Plovdiv is emerging as the most active regional market with over 327,000 sq m of class A and B offices, according to data from the latest Colliers report “Offices in Regional Cities in Bulgaria“. The vacancy rate has dropped to 9.8%, and projects under construction amount to almost 58,000 sq m. Most new buildings are classified as class A, and demand is mainly due to companies from the IT sector, which continue to expand their presence in the city.
The market in Varna remains stable with 271,800 sq m of available office space and a vacancy rate of 10.6%. The most active are companies in the professional services sector, followed by the Retail, Logistics and IT sectors. Average monthly rental levels remain unchanged – 9 EUR/sq m for class A and around 5 EUR/sq m for class B. There is 17,200 sq m under construction in the city.
Burgas lags behind in terms of supply volume with 92,700 sq m, but also notes stability. The vacancy rate is 8.4%, the majority of which is concentrated in one project, and all net leased areas in the last 3 years come from IT and outsourcing companies. Average rents follow the national trend – 8.5 EUR/sq m for class A and 5 EUR/sq m. for class B. Only 2,600 sq m. new spaces are expected to appear on the market in the city.
“The office markets in Plovdiv, Varna and Burgas show signs of resilience and moderate growth. Plovdiv retains its leading role, thanks to its proximity to the capital and strong local business activity, while interest in new locations is growing. High-quality projects that meet the requirements for sustainability and comfort will remain a priority for tenants“, commented Denitsa Doneva, Office Space Manager, Colliers Bulgaria.
Colliers expects the demand for modern, energy-efficient office spaces to continue to grow, with the trend for flexible workspaces to intensify. Regional markets are increasingly positioned as an alternative to the capital, if local administrations offer the right incentives and if there is access to talent and good infrastructure.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE