Retail continues to attract investors

Despite increasing competition the retail sector still maintains relatively stable prices as new shopping center projects put on the market in the second half of 2008 haven't been that many. The most significant progress was seen in Ruse where four new retail schemes were launched.
On the whole, the pipeline throughout the country has risen by 141,400 sq m and a total of 545,000 sq m modern retail space are now under construction, says a research by international property consultants Colliers International.
Rents in shopping malls in Sofia, Varna and Plovdiv range between EUR 20 and 60 per sq m per month. High-street levels currently exceed EUR 100 per sq m.
The highest asking rent in the very center of the capital has reached EUR 140 per sq m for a 22-sq-m store at Solunska St. According to research of the Property Index magazine, the highest level on Vitosha Blvd. stands somewhat below that figure at EUR 113 per sq m. In Varna's center, a 29-sq-m unit has been offered for EUR 131 per sq m. EUR 115 per sq m is the asking rate of a 52- sq-m store at Plovdiv's high street.
The retail stock on Sofia's central streets has been estimated at around 38,000 sq m, while the one in Varna - at approximately 16,000 sq m, according to Colliers International.
Rental levels in the city of Burgas are 30% lower than those in the capital. A 60-sq-m unit in a new business building could be rented for EUR 80 per sq m per month.
Retail units on some of Sofia's major central boulevards have similar price tags - between EUR 80 and 95 per sq m for properties located either on Patriarh Evtimii Blvd. or Rakovski St. Rents on the capital's Todor Aleksandrov Blvd. are up on last year's values. The highest level in 2007 barely reached EUR 30 per sq m but now has risen to EUR 50 per sq m per month.
Sales prices for shopping center space in the capital range between EUR 1,500 and EUR 5,500 per sq m. In the city of Plovdiv, asking prices start from EUR 900 per sq m, a level, which relates to a store in a shopping center on Kapitan Raycho St.
The lowest asking price for the center of Burgas was about EUR 900 per sq m, while in Varna it was slightly more at EUR 1,050 per sq m. The highest asking prices in the largest coastal city exceed EUR 12,000 per sq m but prime properties in Sofia's center cost nearly twice that price. A unit at Alabin St., close to Vitosha Blvd., has been on the market with asking price of EUR 22,727 per sq m.