Retail parks in Bulgaria have experienced a boom in the last 2 years. The total stock of retail parks in Bulgaria for 2021 is 237,000 sqm concentrated in 25 projects. Tenant mix in retail parks varies depending on the size and type of the format.
Despite the fluctuating severity of the pandemic, rental rates remained stable in 2021 and were in the range of 6 to 10 euro per sqm per month. The same trend is valid for the service charge – between 1 – 1.5 euro per sqm. Colliers’ analysis showed that average vacancy levels increased from 7% to 12% year-over-year due to the newly completed projects.
Local investors are currently dominating with a market share of 91%. At the same time, retail parks are perceived as the most stable retail asset class, particularly during COVID-19. Retail parks remain well positioned for investment transactions in the near future.