The volume of newly opened commercial establishments in our country reached 45,000 sq.m in the second quarter of the year, which is 19% less compared to the same period last year. This is a sign of certain saturation and a slight slowdown in the dynamics of new commercial areas. About 23% of newly opened stores are located in shopping centers, and the rest - in retail parks.
„Typically, traders intensify activities in the opening of new sites in the spring. The fact that this year's newly discovered areas are less compared to the previous one speaks for more moderate actions and increasing caution. The explanation for this is complex. On the one hand, there is the slow pace of completed new projects, on the other - the saturation of the market and the more in-depth analyzes that traders make when deciding to open a new site. Political uncertainty is also a factor in redirecting capital from international players to more sustainable markets, commented Georgi Muhovski, deputy manager of the "Commercial Areas" department. at Cushman&Wakefield Forton.
DIY concepts, discount and fashion chains, electronics and furniture stores occupied the most space. During the April-June period, no new brands entered the market.
The activity in the construction of new objects is slightly slowing down, also as an effect of the gradual saturation of the market, the company also points out. A total of 30,000 sq m of new space was added to the total volume in the second quarter. Thus, it reaches 1.4 million square meters, of which 41% are located in commercial parks. In practice, all the newly completed areas in the second quarter are located precisely in the retail parks, which are emerging as an extremely sustainable trend in the market.
The areas completed during the quarter include only one fully functioning commercial park - the one in Velingrad with an area of 10,550 sq.m. The rest of the areas are in objects partially completed earlier or still under construction.
In perspective, the activity of the developers in the commercial space appears to be stable. The total volume of the areas under construction amounts to 155,000 sq.m. Commercial parks make up about 2/3 of this area. At least 8 retail park projects are in various stages of planning, which will bring an additional 90,000 sq.m. Two of these projects were announced during the quarter - one in the northwest and one in the northeast of the country.
Rents in malls in Sofia in the second quarter of 2024 reach 40 EUR/sq.m, which is a slight increase compared to the previous quarter. The yield from prime areas drops to 7.75%. From today's perspective, further movements of these indicators are not expected until the end of the year. The levels in the retail parks in Sofia remain unchanged in the second quarter and with no potential for growth at this stage – 11.5 EUR/sq.m
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE