More than 1.5 m sq m of office space is the current development pipeline in Sofia. Just above half of this amount, or some 780,000 sq m, are under construction and are expected for delivery in the next several years to come. In 2007, 160,000 sq m offices have been leased, show research by Forton International, the real estate consultants. Although the company’s experts forecast 20% annual growth of take-up, it is highly likely that in several years, the market may switch over to a situation of oversupply. However, this is the medium term perspective. The current situation proves that despite the variety of projects supply is yet insufficient and leads to increases of rents. Shortage of modern offices and the small lot sizes of new schemes continue to push prices up. Average rents in the capital have increased by 25% in two years and are now estimated at EUR 17 per sq m per month. Without a doubt, the city center remains the most expensive location as office rents there reach EUR 35 per sq m. Such level relates to a floor in a new building on Pozitano St. Besides the city center, similar rents would be found in buildings on some major boulevards. A new business center on Stamboliiski Blvd. commands EUR 40 per sq m per month for a 120-sq m office. The upper rental level on Bulgaria Blvd goes up to EUR 25-30 per sq m per month. Rents in the area of the airport have outstripped those for buildings near the Business Park Sofia by reaching a maximum of EUR 18 per sq m.
