In the third quarter of 2025. rental activity ontheofficemarket in Sofia continued to rise. The gross leased space reached 61,000 sq m, 8% more than last year. IT companies, led by the giant SAP, were the most active and accounted for nearly 57% of all leased space, according to data from the commercial real estate consulting company Cushman & Wakefield | Forton.
Also active during the period were companies from sectors such as administrative and support activities (incl. outsourcing), industry and professional services. Together, they have contracted around 15,000 sq m or 25% of the leased area. The remaining 11,000 sq m or 18% were taken by wholesalers and retailers, finance and other industries.
From a location perspective, the most sought-after office spaces during the quarter were on the main roads. About 40,000 sq m or 66% of the leased area is in buildings on Tsarigradsko Shosse, Cherni Vrah, Nikola Vaptsarov, Bulgaria and Todor Aleksandrov boulevards. The peripheral areas (Ring Road, Al. Malinov Blvd and the airport) take second place with 13,600 sq m, followed by the wider center and the central administrative zone with a total of 7,140 sq m. If the transactions are considered by type, then the renewed contracts constitute 48% of the total area, followed by the new contracts with 29%, the extensions with 13% and the preliminary contracts with 10%.
Investors' concerns about market saturation are holding back construction activity. No new office projects were commissioned during the quarter. The areas under construction also remained unchanged - just over 200,000 sq m. The construction of a significant part of this volume is expected to be completed by the beginning of 2027.
At the end of September, the office space of classes A and B in Sofia amounted to 2,327,000 sq m. The free area is nearly 290,000 sq m. or 12.4% of the total volume. The smallest amount of free space - 14,000 sq m - was recorded in the central administrative zone, where the vacant area is below 6%. The largest number of vacant offices are located along the main roads - 148,000 sq m (13.1%), while in the peripheral areas the vacant areas are 106,000 sq m (14.2%).
„Market conditions in the past quarter were favorable for tenants. There were many options for choosing vacant office space in all areas of the city, with the exception of the central administrative zone. This, as well as the expectation of commissioning more new office space in the near future, kept average rental levels in the range of 14-18 euros/sq m. for class A space and 9-12 euros/sq m. for class B space. Even rents for prime space in the center of the capital remained unchanged at 20 euros/sq m,“ commented Yoanna Dimitrova, Manager “Office Space“ at the company.
Since the beginning of the year, at least six office buildings with a total gross lettable area of 50,000 sq m. have changed owners. The value of these investments, mainly with local capital, amounts to 150 million euros. In the coming months, the market may witness new deals, as investor interest remains high.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen at imot.bg