Retail park owners identify rising operating costs as the main challenge facing them, while compliance with ESG standards is not a priority. Tenants emphasize the mix of retailers, location and commercial conditions when planning expansions, with the main focus remaining on smaller cities. This is indicated in a study by the consulting company Colliers conducted in the first half of the current year.
The analysis confirms the growing importance of retail parks in the retail space market in Bulgaria. With a stable volume of new projects, strong interest from retailers and consumer preferences oriented towards convenience, this segment remains well positioned for sustainable growth. Despite challenges such as rising costs, both investors and tenants demonstrate a commitment to long-term development, especially in underserved regions. Retail parks are expected to retain their key role in the context of Bulgarian trade.
Overall, the retail park segment continues to develop as one of the most active in the Bulgarian commercial property market. With the growing consumer demand for convenience and easy access close to home or work, they are establishing themselves as the preferred format for both fast-growing mass merchandise chains and larger stores accustomed to operating independently in a big box format.
Retail parks in Bulgaria can be grouped into three main categories according to gross leasable area (GLA):
Large retail parks: GLA over 15,000 sq m, usually located on the outskirts of cities and with several key tenants.
Traditional retail parks: GLA between 5,000 – 14,999 sq m, with tenants typically consisting of grocery stores, other household goods and those providing additional services.
Convenience retail parks:GLA up to 4,999 sq m, located in smaller towns or residential areas, offering compact retail formats.
The Retail Confidence Index in Bulgaria has consistently exceeded the EU27 average over the past year, indicating stronger confidence among local retailers. They remain optimistic about business activity and consumer demand.
By the end of the first quarter of 2025, the total area of retail parks in Bulgaria will exceed 600,000 sq m, distributed across 70 projects. Of these, those classified in the Traditional category account for nearly half of this volume. Owners are mainly local investors, and international companies are also starting to enter with large-scale new projects.
In 2024 and early 2025, 8 retail parks were opened. 14 are currently under construction, which will add about 180,000 sq m, with 60% of this volume being in Large Retail Parks. An additional 25 projects are in the early planning phase. Investment interest is directed both at cities with a population of over 100,000 people and at smaller settlements of under 30,000.
Demand is determined by changing consumer behavior and retailer strategies that emphasize accessibility and efficiency. Tenants include discount chains as well as brands in the fields of fashion, sports and furniture. Retail parks are often used as showrooms.
Rent rates vary between 6 and 12 EUR/sq m per month, depending on the location, size of the park and the demographics of the city. The vacancy rate remains below 6%, although newly opened parks sometimes start with higher values of this parameter.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE