Bulgarian shopping centre rents increase


by Ákos Budai | Retail

During the first half of 2017 demand and supply of modern retail space in Bulgaria have been aligning with each other, according to a new research by Colliers International. During the period, modern shopping centers retail space supply balanced with demand by keeping its previous levels of 791,760 sqm in the country and 406,660 sqm in Sofia. Together with this for a few periods now, retail space absorption has been steadily going up. During the last half-year period, it recorded an 11% increase, providing for demand - supply balance. 

The share of space, leased during the period, in the well-established shopping centers in Sofia was approximately 5% from the gross leasable area – related with the fact that some of these projects had 100% occupancy rate. The largest number of new openings was registered in Paradise Center, followed by Park Center, and Serdika Center and The Mall. The average occupancy levels of the established projects in Plovdiv, Varna, Burgas and Stara Zagora stood at 92%.
Supermarkets and food chains, followed by fashion operators and the representatives of the electronics segment were on the top of the list in terms of new openings. Kaufland, Billa and Lidl kept expanding, a trend also valid for domestic retailers. Billa was actively opening locations in shopping centers. During the surveyed period, the chain rented space in Serdika Center and announced openings in Park Center and Mall of Sofia. Carrefour in Bulgaria Mall was replaced by ABO Market – a shop-in-shop concept. This development came as a result to the supermarket segment restructuring, which started during the previous half-year period. Despite the activeness of the supermarkets and food chains, the wide range of vacancy levels in Sofia shopping centers – 2-23% maintained.
New openings worth mentioning were in the food chains segment, whose representatives tend to prefer high-street locations. Wagamama and Hamburguesa Nostra entered the local market. The Finnish fast food chain Hesburger expanded to Sofia. In the furniture and DIY segment, JYSK opened a second store in Pazardzhik and three in Sofia – one of them in retail park Jumbo Plaza. Retail parks development activites, related to leasing and tenant mix enhancement, remained as a trend.

Vacancy rates stood in the range 3-15%. The retail parks rental rates were between €7-10/sqm, while the prime shopping centers rents registered a slight growth. The highest level was observed in Sofia, where it jumped from €35-38/sqm. 
Colliers’ forecast for the next half-year period is for stable development of the retail property market in Bulgaria. Demand will continue to balance supply. As a result to the positive tendencies, the strong investment interest towards the modern shopping centers is expected to deepen. 



HB Reavis project awarded WELL certificate in Warsaw

by Property Forum
HB Reavis’ flagship development in Warsaw’s city centre, Varso, has been awarded a WELL Core & Shell Precertification by the International WELL Building Institute. Through the introduction of solutions aimed at improving employee wellbeing at the building design stage, Varso is WELL Core & Shell Precertified at the Gold level, and could be awarded WELL Core & Shell Certification following final performance verification upon completion in 2020.
Read more >

Secondary shopping centres may not survive

by Ákos Budai
The rapid growth of e-commerce will completely transform the retail market within the next few years. Shopping centres will need to adapt to changing consumer needs in order to stay in business but experts believe that many will not survive. Booming online sales, on the other hand, present a great opportunity for further growth in logistics. Members of the retail panel at CEE Property Forum, moderated by Andreas Ridder, Chairman CEE at CBRE, discussed the future of the business.
Read more >

Skanska starts €27 million office project in Prague

by Property Forum
Skanska invests €27 million in the office project Praga Studios in Prague. The seven-floor building will offer a total leasable area of about 12,000 square meters. Construction has begun and the office building is scheduled for completion in Q2 2019.
Read more >


Property Forum is a leading event hub in the CEE real estate industry with nearly 10 years of experience. We organise conferences, business breakfasts and workshops focused on real estate, in London, Vienna, Milan, Germany, Bucharest, Budapest, Belgrade, Bratislava and Prague.



Sign up today for the latest news

Clicking on SUBSCRIBE I accept the terms and conditions regarding application and cancellation. I give my consent to the management of my personal data provided, and I accept the Privacy Policy


Property Forum © 2017     Terms & conditions | Privacy policy