Investments in new office space in Sofia would receive a negative return on investment at the moment, an international research showed.

Sofia had one of the lowest rents of retails space on shopping streets compared to other East European capitals, research by Cushman&Wakefield showed.

Average rent for the main shopping streets was 100 euro per sq m, according to data from the research. Return on investment was seven percent. Only in Warshaw was average rent lower, at 80 euro per sq m, but return on investment was 7.25 per cent.

Highest average rent was charged in Prague, 170 euro per sq m, but return on investment was lowest at five per cent.

Over the past year the rent for retail space in Sofia has fallen with 16.7 per cent, Cushman&Wakefield said. In Warsaw prices have gone up with 25 per cent over the same period.

The report said the segment growth was stable, despite the fact that few modern retail spaces were being offered.
Prices have dropped because large investors were looking for large, modern spaces which in Sofia's central shopping street Vitosha were not available.

Average rent for office space was 16 euro per sq m in Sofia, though in the centre of the city prices could go up to 24 euro per sq m. Office rents have decreased with 1.1 per cent over the past year. According to the report, investors in new office spaces would loose 3.1 per cent on their investment.

Rental prices for offices in Warsaw have gone up by 58.8 per cent compared to last year and the average price was 27 euro per sq m.

Return on investment in the Polish capital was 5.25 per cent, the report said.

Despite active construction office, six per cent of office space in the city was unused. Announced projects had a combined 480 000 sq m and in planning phase were 723 000 sq m.