Bulgaria Records Third Biggest Drop in Commercial Rent Prices

Bulgaria's capital Sofia ranks third in the EU for drop of rent prices for outlets on commercial streets for the past three years, a research shows.

The research by the consultant company CB Richard Ellis (CBRE) showed that in the past three years the rents in Sofia have gone down by 38,46%.

In the last year the drop has increased to 27,27% with a drop of 11,11% only for the past three months.

According to another consultant company, Colliers International, the opening of new shopping malls affected the performance of the main High Streets. Brands are concentrating in the malls, where rental rates are lower, pushing overall vacancy to 10% in Sofia.

High Street sees an average decrease of 20% across all submarkets for the first 6 months of the year, according to Colliers' report.

CBRE recorded that after the fall of rent prices for outlets outside the areas of the malls, the price have reached EUR 40 per sq.m. per month.

Such decrease of prices is compared to markets outside the EU, like Moscow, where the drop is 38,55%.

The biggest drop within the EU has been recorded in Bucharest, where there is a fall of 50% since its highest point in the past three years.

Dublin ranks second with a drop by 47,50% for the past three years. There has also been recorded the biggest drop for the past year, 38,24%.

The research showed that rent prices on many markets have remained unchanged and others, like Hague and Berlin have even increased their rent prices by 16% and 4% respectively.

Outside of the EU, the biggest fall of rent prices have been recorded in Dubai, by 56%, and in Johannesburg, by 42%.

CBRE noted that the information is valid only for outlets with specific indicators for quality, type and size. The company added that the degree, in which the data is supported by real evidence as a result of signed deals, is varying for the different markets and periods.