Plovdiv, Varna and Burgas still lag behind the capital in terms of construction of new office space. Construction is mainly concentrated in Plovdiv due to its proximity to Sofia and the city's business activity. Demand is mainly driven by corporate tenants looking to expand their presence nationally. Decisive for them when choosing a location are better access to talent and the offer of flexible and hybrid work models, according to the data of a study conducted by the consulting company Colliers.
Plovdiv
The supply of class A and B office space in Plovdiv exceeds 324,200 sq.m. This represents an increase of about 15.5% compared to the previous year. Under active construction are a total of 55,200 sq. m., most of which are class A. Vacant areas remain unchanged - 9.9%. Class A offices represent the majority of the total volume with a share of 56%. The majority of the areas are located in suburban areas (54%), a quarter are in the broad center and only 20% - in the center. The demand in the city is driven by the IT and outsourcing industry, which in the last 3 years has net utilized areas - 88%. Rents amount to 10 euros/sq.m. m/month for class A areas and about 5 euros/sq. m / month - for class B.
Varna
The supply of modern offices in Varna remains stable and amounts to 270,700 sq.m. The same applies to the percentage of vacant areas, which is unchanged compared to 2023 - 10.6. There are only about 4,500 sq. m. offices under active construction. A total of 54% of the existing areas are located in class A buildings. More than half of the total supply is in suburban areas (55%), while 23% is in the wider center and the remaining 22% is in the center of Varna. Half of the net absorption in the last 3 years is due to the IT sector, followed by professional services firms, representatives of the retail sector and logistics companies. Average rents remain at 8.5 euros/sq.m. m/month for class A office space and 5 euros/sq. m / month - for class B.
Burgas
The offer of modern offices in Burgas continues to lag behind that in Plovdiv and Varna and amounts to 89,700 sq. m. The percentage of vacant areas in the city is 8.7. About 5,600 sq.m are under active construction. offices. The share of class A areas is 61% of the total volume. Almost half of them (46%) are in the broad center, 20% are in the center, and 34% are in the suburban areas. All net acquired areas in the last 3 years are from companies from the IT and outsourcing industry. The average rent levels for class A offices are 8.5 euros/sq.m. m/month, and for class B - 5 euros/sq. m/month.
Colliers forecast rental levels in regional cities to remain stable with modest increases in prime projects, little or no vacancy and downward pressure on older buildings. International IT and BPO companies looking to enter the market or expand their operations locally will remain the main driver of office leasing.
Plovdiv will continue to develop as the main secondary office location in Bulgaria. There is also interest in cities outside the three subject of the Colliers report, but it can be realized in the medium term, provided that appropriate incentives are created by the local administration.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE