Construction works on the consecutive retail and entertainment complex in Sofia, the Bulgaria Mall, which officially kicked off in July, demonstrates the progress of a retail sector, in which demand is still ahead of supply. The project, located on the corner of the boulevards Bulgaria and Todor Kableshkov, offers 33,000 sq m of retail space. Even before the beginning of construction some 30% of it had been pre-let, while requests from potential tenants exceeded the available stores. Average rental levels are between EUR 20 and 30 per sq m per month, but for smaller shops they are significantly higher. The largest tenant is the retailer Carrefour.
The stable and strong demand sustains rents at high levels although there are no significant changes since last year. Rents on Bulgaria Blvd. start from EUR 15 per sq m to reach EUR 60 per sq m per month for a 110-sq m store facing the boulevard. A year ago the levels have been in the range between EUR 13 and 53 per sq m per month.
In the retail centers in Sofia their levels vary between EUR 30 and 60 per sq m, excluding the biggest tenants like supermarkets and cinema operators.
The top sale price for shopping space on Bulgaria Blvd. has increased by EUR 3,000 per sq m compared to last year. In 2007 the highest price reached EUR 4,000 per sq m while as of now it is nearly EUR 7,000 sq m. A 150-sq m unit, located near the crossing with Todor Kableshkov Blvd., is for sale for EUR 6,700 per sq m.
Retail space under construction in Sofia is currently some 637,000 sq m, according to data from the on-line building register in Bulgaria, BCC. In Plovdiv, the total space under construction amounts to 324,000 sq m, as in Varna it is 326,000 sq m and in Burgas - 164,000 sq m.
The highest sale prices of retail space in Sofia are found within the center of the city. The offers reach EUR 20,000 per sq m in values, excluding Vitosha blvd, where the ad asking EUR 47,000 per sq m is still on the market.
In Varna’s center the upper levels reach EUR 12,000 per sq m. They are EUR 10,000 per sq m in Plovdiv and EUR 4,360 per sq m in Burgas. In the meantime there is an offer in a new building for a 50-sq m store in the center of Varna asking EUR 4,000 per sq m.
Construction of a third mall started last month also in Ruse. The retail rental levels in the center of the Danube city reach EUR 30-35 per sq m.
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