* Office areas
Shortage of office space in Varna last year accounts for keen interest in this segment, which will persist this year, according to Foros specialists. New modern office units are expected to emerge on the market, Dobromir Ganev, Foros general manager, said. He believes that Business Park Varna's third building will be occupied before its official opening. Many new projects will also be launched in Metro Cash&Carry Hypermarket area.
These locations are growing attractive to business people because of parking space shortages in Varna's centre. Ganev believes that many companies will move their offices to the outskirts and some top floors apartments, which have previously functioned as offices, will become vacant. Offices on first and second floors of apartment blocks will need a considerable face-lift to keep their tenants.
* Retail areas
Many mall projects may change their concept in 2008, according to Foros specialists, because Varna's market will be over-saturated if all of them come to fruition.
Varna saw the opening of a number of commercial developments in 2007: Phohe mall, Central Plaza retail centre, the inception of building of Varna Towers and Grand mall. Projects for Galeria Varna and Cherno More Park malls were also presented. Mall Varna is due to open this spring.
Retail areas in the city's centre have so far maintained their price levels and are likely to remain steady this year. Some fall is possible but it will not exceed 5-6 per cent, according to Dobromir Ganev.
Retail units in Varna's top centre rented at 40 euro a sq m at the end of 2007. The costliest developments were on Knyaz Boris I Blvd, asking a monthly rent of 90 euro a sq m. The cheapest location was Tsveten (Flower) neighbourhood - charging only 8 euro a sq m a month.
* Industrial plots
This segment will be the most interesting in 2008, according to brokers. It was considerably affected by growing demand from Romanians last year. This is most visible in Rousse and regions along the Bulgarian-Romanian border where there is a keen interest in plots for construction of warehouses and industrial plants aiming to move some production activities to Bulgaria.
The question is whether supply in these regions will adequately address existing demand and whether this will redirect to Varna region. The other factor affecting the industrial land market is the adoption of Varna's new master plan. Its draft project will be discussed at the end of February.
