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The return on housing in Sofia remains unchanged

For the second quarter in a row, it amounts to 7.75%

Oct 23, 2024 14:21 357

The return on housing in Sofia remains unchanged  - 1

The investment volume amounts to EUR 193.8 million, and the return in the various segments of the market remains unchanged compared to the previous quarter - 7.75 % for offices and commercial areas, 7.5% for industrial and 4% for residential properties, according to the data of a Colliers report.

The total square footage of the existing offices in Sofia is 2,426,200 sq.m., with another 300,600 sq.m. under construction. The vacant areas are 14.2% for class A and 15.1% for class B, with the average rental levels amounting to 15 and 10 euros/sq.m per month, respectively. Flexible workspaces include 86,900 sq.m., with an additional 8,500 sq.m. under construction. The prices remain the same as in the previous period - for a shared desk - 150 euros per month, for a fixed – 180, and for a cabinet – 220 euros per month.

The existing industrial and logistics areas in Sofia are 1,406,000 sq.m. and another 224,200 sq.m. are under construction. Vacancies for this type of property are only 3.7%. Rent levels are unchanged - 5.5 euros/sq.m./month for class A properties and 4 euros/sq.m./month – class B.

Rental prices also remain stable in the commercial space segment. They amount to 43 euros/sq.m./month in shopping centers, 11 euros/sq.m./month in retail parks and 56 euros/sq.m./month in the main shopping street in Sofia. No new shopping centers are planned, and 127,000 sq.m. for the parks. are under construction. Colliers' data show that the share of vacant spaces in shopping malls and on Vitosha Blvd reaches 3.2%, while in retail parks it is already below 1%.

On the housing market, average sales prices for a two-bedroom flat including VAT and parking vary between €190,000 and €240,000, and for detached houses in excess of €500,000. Rent levels including VAT are between 1,200 – €1,400 per month for a two-bedroom apartment and over €2,300 per month for a house. Supply totals 16,720 housing units, with another 6,500 under construction.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE