Office Space In Bulgarias Capital City Outskirts Increase By 50 Per Cent

The amount of office space in the outlying regions of Sofia has increased by 50 per cent in 2006, compared to 2005 figures, according to research by real estate consultancy agency Colliers.

Office space in the region increased from 167 000 sq m in 2005 to 251 000 sq m in 2006, investor.bg reported.

In comparison, the total volume of office space in the centre of Sofia increased by 9.5 per cent.

Class A offices added up to 241 000 sq m, an increase of 34 per cent. Class B offices reached 305 500 sq m, an increase of 21.5 per cent.

The lack of land appropriate for office buildings, along with high prices for land and insufficient parking space were the main factors forcing investors to build far from the centre, Colliers.

Office space in the centre of Sofia currently totals 127 000 sq m.

Nearly two-thirds of office space in Sofia is occupied by companies from the financial sector, insurance, investment, real estate and production.

Sales prices of new construction vary between 600 and 2 500 euro a sq m depending on location, parking and construction quality.

In view of the expected economic growth, Colliers predicts that demand for high quality offices will increase in future. sofiaecho.com