Sofia, Bulgaria, February 16, 2008 --(PR.com
)-- In the second half of 2007 the growth of office supply in Sofia continued its upward trend of recent years and registered 16% growth compared to the middle of the year, adding about 98,000 m2 of office space, according to the latest Colliers Bulgaria research, the H1 2008 Office Market Overview.
Currently, the total inventory of multi-tenant and speculative Class A and B office space in the capital stands at 704,600 m2. New supply in the second half of 2007 was mostly driven by suburban development, delivering 66% (or 64,000 m2) of the total new office space.
The office market in Sofia remains supply-driven. The existing office inventory is almost fully occupied and the new supply seems insufficient to meet the current market needs. Vacant space declined during the past six months, accounting to less than 4% (or 26,000 m2) of the total office supply.
Net absorption was 161,000 m2 in 2007, exceeding expectations and up from 101,500 m2 in 2006 – 58% growth. Rent levels continued to grow in the second half of 2007. The increase was most notable for Class A properties for which asking rents went up in all submarkets, reaching an average level of over €15/m2/month. In the CBD, rents kept the trend from the past years, growing at a rather slow but steady pace, and averaging €17/m2/month for available office space. The highest annual increase in asking rents for class A was in the Broad Center - 22%.
These are some of the latest research findings of Colliers International. Colliers’ H1 2008 Market Overviews can be downloaded free of charge online at http://www.colliers.com/bulgaria.
Colliers International is a worldwide affiliation of independently owned and operated companies with more than 260 offices in over 50 countries. Worldwide Colliers manages more that 62.5 million m2 and has over 10,000 highly qualified professionals.
The company has been active in Bulgaria since 1991 and has become the unquestionable market leader in providing comprehensive real estate services. Currently Colliers Bulgaria represents some of the most innovative and professionally planned projects in all segments of the real estate industry, including offices and business parks, retail, logistics and industrial, residential and holiday homes.