Office space in Bulgaria is struggling as much as the residential market, with a tough year ahead, according to a recent report by Cushman & Wakefield. For grade A, B and C office space, rental values were at their last peak in Q2 of 2008, with a steady decline since.
Against this, the vacancy rates have shot through the roof as the global economic crisis has deepened. Office rental in Bulgaria now rates at 54th in the world, with an average slip of around 20% in value over the past year. Office property in Sofia is now costing around €200 per sq meter a year.
It is not all gloom for real estate in Bulgaria as the company predicts a rising trend as the country emerges from the shadows later this year. Office valuation and rental are expected to reach their lowest point by the end of Q2, which means a relatively short window of opportunity for businesses looking to relocate or to buy investment property in Bulgaria.
It will also be around that time that the new law regarding deposit accounts come into force on property deals. This is going to make for a busy market in the weeks ahead.
Source: propertyworld
