Last year, 2 retail parks were opened in Bulgaria - Vidin Plaza and Retail Park Velingrad. This brings the total leasable area of all operating retail parks in the country during the period under review to around 474,500 sq m, located in 38 properties, according to an analysis by the consulting company Colliers. Small projects - up to 5,000 sq m - are developing at a fairly rapid pace, with 26 of them, with a leasable area of 83,000 sq m. Five retail parks are under active construction, which will add 16,600 sq m to the total supply.
Shopping centers in large cities continue to be characterized by high occupancy, attendance, turnover of retailers and rental levels. Vacancy rates in established projects vary between 0.1% and 7.8%. Several shopping centers in the country are in varying degrees of repositioning. As a result of strong demand, rental rates for prime space in malls have increased and reached their highest levels in the last five years. In Sofia, they amount to 45 euros per sq m per month.
The occupancy rate in shopping centers in the capital remains high at the end of 2024. The average vacancy rate in established projects is slightly below 3.0%, which is very close to the lowest value in recent years. There is no change in the total volume of lettable space in shopping centers in the second half of the year, as there are no new projects. During the period under review, the occupied spaces in this format in Sofia are over 8,400 sq m, and for the whole of 2024 - over 22,200 sq m.
The main shopping streets report good dynamics. The vacant space on “Vitosha“ Boulevard is only 2%. After in 2021, retailers operating in the Fashion and Restaurants sectors had an equal share of the main shopping street's space, last year the Fashion sector increased to 33%, while the share of restaurants remained unchanged at 24%. Rents on “Vitosha“ Boulevard in the capital, according to the latest Colliers data, are 58 euros per square meter per month.
Among the large cities, Plovdiv remains in first place in terms of the number of retail parks with a total of 5 operating with over 63,200 sq m. of lettable area. There is one project under active construction, in which 21,000 sq m are offered. The utilized space in shopping centers in Plovdiv for the entire year is over 3,400 sq m. m., with more than 30% of them occupied by retailers in the Fashion sector, followed by electronics stores and Restaurants with 19% each. Rents registered an increase to EUR 32, due to continued interest from new tenants, as well as from existing ones renewing their contracts.
In Varna, the volume of utilized areas in shopping centers last year was 6,500 sq. m. This is the highest value in the last four years. Occupancy levels in established shopping centers are rising to over 95%. Rents in the same have increased to EUR 30.
In Burgas, the supply is unchanged, as the city remains one of the few regional cities without an operating retail park. The utilized areas in the two shopping centers during the year are only 400 sq. m., which can be explained by the lack of available areas in the established project and the upcoming repositioning of the other. Rents in shopping centers follow the national trend of increase and reach EUR 30, while on the main shopping streets they remain unchanged – EUR 23.
In the future, retail parks will continue to develop and will cover an increasing part of the country. As the market enters a saturation stage, investors will not be able to rely on their status as the only project in a given settlement. The success of the new parks will depend mainly on their correct positioning and their ability to offer competitive advantages. Large investors have concentrated mainly in Sofia, where a significant increase in the supply of new retail space is expected. Two new retail parks are being actively built in the capital, as well as an expansion of an existing one, with their completion planned for 2025. Investment intentions have been announced for six more projects, which are still in the process of urban planning.
Malls are experiencing a steady increase in attendance, retailer turnover, rental levels and floor space occupancy. In this context, optimizations of the tenant mix will continue, with efforts being directed at attracting diverse and attractive brands that respond to changing consumer preferences. Malls are expected to increase their focus on integrating innovative concepts, such as entertainment and event areas that complement traditional shopping.
Rent levels will remain stable in the short term, with prospects for an increase in high-quality projects in the future. This is due to the shortage of vacant space, growing demand from local and international retailers, as well as the increased purchasing power of the population.
The trend towards opening more single-brand stores is intensifying. This is a clear indicator of market development, as stand-alone concepts allow for more effective presentation and positioning of specific brands. Part of the evolution in retail is the increased interest in modern outlet formats located in stand-alone locations. These approaches meet the growing expectations of consumers for a personalized experience and easy access to brands.
Online sales are taking up an increasing share of retailers' turnover. In response, some have already reorganized their physical presence, closing underperforming stores and directing investments to improving their established locations. In 2025 Colliers expects this trend to continue, however, the emphasis will remain on the development of physical stores and the customer experience as a core part of the purchasing process.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE