The retail space market in Bulgaria maintains its high dynamics and sustainable growth rate, driven mainly by new and expanded sites in the retail park segment. During the April-June period, the volume of newly commissioned areas increased by 30% compared to the first quarter, reaching 25,152 sq m. m.. All of this area is located only in park sites, with the partial opening of Parkmaxx Plovdiv and RP Rakovski, as well as the expansion of XOPark Sofia, playing a key role. This is according to data from the analysis of the commercial real estate consulting company Cushman&Wakefield | Forton.
The total available volume in the retail park segment is now 621,000 sq m, distributed in 61 locations in the country. At the same time, retail space under construction decreased to 159,000 sq m within 14 sites, and another 175,000 sq m is in the planning stage in another 14 projects. The expectations are that by the end of 2025 the volume of retail parks will exceed 700,000 sq m, and by the end of 2026 - 800,000 sq m, thus overtaking malls in terms of total leasable area.
„Investments in the retail park segment remain highly dynamic. By the end of 2026, they are expected to even surpass malls in terms of area. The reason is on the one hand the flexible format, and on the other - lower operating costs and the opportunity to position themselves in smaller cities where malls are not a sustainable model,” commented Yavor Kostov, Managing Partner at Cushman & Wakefield | Forton.
Demand also grew by 12% quarter-on-quarter, with 75 new store openings and nearly 34,000 sq m of newly leased space. Malls accounted for 59% of the number of new deals and 43% of their area, while retail parks held the remaining share. The most active during the quarter were fashion retailers (almost 8,000 sq m), followed by electronics retailers (around 6,000 sq m) and chains with a diverse assortment such as KiK, Pepco and Tedi (over 4,000 sq m).
Activity in malls was particularly strong in Paradise Center and Serdika Center, where a total of 15 new stores opened. In retail parks, Parkmaxx Plovdiv and XOPark Sofia stood out with 20 new properties. Four new brands entered the Bulgarian market during the quarter – Salsa Jeans, Office Shoes, Tous and Anna Cori – all with locations in malls.
Vacancy levels in malls and retail parks remained low across the country. Rents for prime space in Sofia malls rose to EUR 46/sq m, while those in retail parks in the capital remained stable at EUR 13/sq m. m. The profitability of malls remained at 7.5%, and in retail parks the slight decrease to 7.25% reflects the increasing dynamics in the segment.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen at imot.bg