Rents in shops and malls have not changed recently
Property investment returns remained unchanged in the third quarter of 2024, according to the latest report from the consulting company Colliers International.
The highest profit continues to be when investing in office and commercial space – 7.75% on an annual basis. For industrial and logistics areas, it is on average 7.5%, and for residential properties – 4%.
This is the annual profit of the investor who bought or built the relevant property and rents it out. However, there are many variations, especially in housing.
The luxury cooperatives
can provide up to 5% annual return
of funds, and in the case of commercial areas, especially in the capital and large cities, it can even reach over 8%.
There is almost no change in rents for commercial premises, according to data from the report. The average rent is 43 euros per square meter per month in shopping centers, 11 euros per square meter per month in retail parks and 56 euros per square meter per month in the main shopping street in Sofia.
At the moment, no new shopping centers are planned, and 127,000 square meters of parks are under construction. Colliers’ data show that the share of vacant spaces in malls and on Vitosha Boulevard in the capital currently reaches 3.2%, and in retail parks it is already below 1%. Certainly in the last two months of the year, when there is a shopping frenzy, these percentages will completely melt away. When this happens, and if it continues as a trend, there may be a slight increase in rents.
The existing industrial and logistics areas in Sofia are 1.4 million square meters and another 224,200 square meters are under construction. Vacancies for this type of property are only 3.7%. Rent levels are unchanged – 5.5 euros per sq m per month for class A properties and 4 euros per sq m per month for class B properties.
The total square footage of the existing offices in Sofia is 2.4 million square meters, with another 300,600 square meters under construction. Vacancies are 14.2% for class A and 15.1% for class B, with average rental rates of 15 and 10 euros per sq m per month, respectively.
The total volume of flexible workspaces reaches 86,900 sq m, with an additional 8,500 sq m under construction. The prices remain the same as in the previous period – for a shared desk – 150 euros per month, for a fixed one – 180, and for an office – 220 euros. However, such flexible workspaces are also often available in classic office buildings.
According to the housing market report, average sales prices for a two-bedroom apartment with parking space included range between €190,000 and €240,000, and for detached houses in excess of €500,000.