Sat, Feb 11 2012

Bulgaria drops five places in global office rent rankings

Wed, Feb 24 2010 09:14 CET

byDnevnik.bg

2676 Views 3 Comments
Bulgaria drops five places in global office rent rankings

Sergei Koinov of Forton International.

Photo: Assen Tonev

Bulgaria dropped by five places in the office rent ranking compiled by real estate services company Cushman & Wakefield.

With annual rental costs of 205 euro a sq m, or a monthly 17.08 euro a sq m, Bulgaria was number 54 out of 63 worldwide cities by 2009 levels, dropping from 49th place in 2008.

The total renting cost includes the rent plus property management and maintenance costs.

Upscale office space in Bulgaria's capital city Sofia rented out for 13.5 euro a sq m monthly, VAT excluded.

"As the economy perks up in the second half of the year and some of the new projects are completed, I expect the market will see larger transactions in terms of volume," said Sergey Koinov, executive director of Forton International, the global company’s associated office for Bulgaria, Serbia and Macedonia.

In 2009, rents plunged deeper in North and South America, where they nosedived by eight per cent and five per cent, respectively, according to the consultancy.

Europe saw an 11 per cent decline, largely thanks to sharp drops in Central and Eastern Europe.

Source: Dnevnik.bg

  • Print
  • Send via email
  • Translate to
  • Share:

Comments

Anonymous Jim Fri, Mar 05 2010 09:25 CET
Report Comment

Dear Rodolph, Bulgaria needs you! The call center business has taken off here over the last 3 years. I run a real estate company managing and letting property and you are perfectly right it is a tenants market at the moment. Recession is biting hard and there should be supply of both suitable vacant office space and staff therefore.

Anonymous peter Mon, Mar 01 2010 18:49 CET
Report Comment

Don't sign your contract to soon, prices will go down more and become more interesting. With more office space to come on the market and already 20-30% being empty all over Bulgaria that would be very obvious.

Anonymous Rodolph S Fri, Feb 26 2010 10:28 CET
Report Comment

As a telecom exec looking to locate our new 10.000 sqm call and service center in Romania or Bulgaria, the value now seen in Bulgaria against cost is attractive and as our advisors has shown us there are many buildings what are suit in our preferred location from the New Airport to the Tsar Street. The decision will rest now on staff quality alone...we hope to make an announcement that we will come soon....RS


To post comments, please, Login or Register.


Please read the The Sofia Echo forum comments policy.

Buying an office in Bulgaria costs the same as leasing - Creditex

While lease prices are lower than in 2008 and loan interest rates are higher, the purchase of an office through a bank loan costs as much as renting one, according to the company.

Colliers International: Office rent levels in Bulgaria to stabilise in 2010

Other experts in the field, however, believe that rents will continue to go down as new office space is made available, while demand remains largely unchanged.

Warehouse rent prices in Bulgaria slid 20 per cent year-on-year in 2009

GVA Sollers Solutions estimated prices have shrank by 16.75 per cent, while Cushman & Wakefield pegged the decline at 23 per cent.

Office rents in Sofia to stay unchanged in 2010 - study

Rents had decreased by 22.5 per cent by the end of 2009, as opposed to levels from the summer of 2008, which brought renewed interest in the market segment, according to property consultants Elta Consult.

Newly-completed office buildings to keep rents low in 2010 - study

About 375 000 sq m of new office space is going to be completed an made available on the market in 2010, which will have a dis-balancing effect on the prices due to excessive supply

Construction of 160 000sq m of office space in Sofia stalled

Complexes exceeding 900 000 sq m of new office space are currently under construction in Sofia, but many of them will be slashed.

Forton International latest: office rents are declining by 30 per cent

Sharp reduction in prices in Sofia and other major urban centres nationwide for office space as the economic crisis encroaches even further on Bulgarian business climate

More in this category

Raiffeisen Real Estate: Prices of Sofia homes returned to 2007 levels

Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.

Most property sales in Bulgaria were people wanting to escape their investment – report

Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.

Bulgarian property market: Home finance easier, media report says

Nearly all banks are ready to finance between 80 per cent and 90 per cent of the price of a home, provided it is a good building in a large city, Bulgarian daily says.

Bulgarian property prices ‘have hit bottom’ brokers say – report

Property prices in Bulgaria were five to 10 per cent lower in 2011 than in 2010, while initial estimates for this year are that they will remain largely unchanged, with transactions remaining at ‘crisis levels’.

Budapest, Skopje at top among ‘Europe’s top 20 places to invest in property’

Bulgaria’s capital city Sofia ranks 17th, report says, quoting Global Property Guide.

© 2000-2012, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.