According to statistics released by Forton International, a major Bulgarian real property agency, a decline of between 20 per cent and 30 per cent has been observed in some areas in Sofia and other major urban centres nationwide.
"The trend for rent level growth at the beginning of 2008, which was expected to remain stable, has in fact stalled and then slumped substantially," the Forton International report claims, as reported by Stroitelstvo Gradut.
"Some of the factors behind the decline are explained by the alarming slide in demand, and the subsequent heightened caution of custumers due to the negative outlook of the economy," said Sergei Koinov, executive director of Forton International.
In 2009, potential tenants will have a much greater choice to get more spacious and better located offices for the same budget. Meanwhile, some major investors have also slashed altogether some of their schemes for development and expansion, the report continues.
The latest survey by the global consultant firm CB Richard Ellis reveals that in post-crisis conditions, tenants will benefit from cheaper prices, more attractive locations and greater choices.
Forton International claims that rents outside Sofia's immediate centre are currently offered for between 10 and 15 per sq m. Globally, every market has been affected, without exception, but to a large extent the crisis in Bulgaria has been milder so far.
