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MARKET OVERVIEW H1 2018
July 2018 | Region Research & Forecast Report | Colliers International
SOFIA
INDUSTRIAL
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H1 2018 | Sofia Industrial Market Overview | Colliers International
HIGHLIGHTS The first six months of 2018 saw active investment interest in Sofia industrial space. A slight increase of 4% was registered in modern logistics and industrial space supply in Sofia during the first half of 2018, amounting to 915,750 sqm.
Net absorption remained at last year levels – 27,800 sqm. Average class A rental rates recorded a modest growth of 4%, as for industrial space with good location and built infrastructure reached EUR 5.2 per sqm.
Retailers & wholesalers, logistics operators and transport & spedition continued to drive demand.
INDICATORS
915,750 sqm
6%
4.7 class A 2.7 class B
Supply
Vacancy
Rental levels
217,500 sqm
27,800 sqm
Under construction
Net absorption
(sqm/month)
DEMAND BY SECTORS
48%
33%
19%
Retailers & Wholesalers
Logistics operators
Professional services
LOGISTICS OPERATORS SURVEY RESULTS CONDUCTED BY COLLIERS INTERNATIONAL
Survey participants are optimistic about their company revenue in 2018. Expansion within location and city is the most frequently mentioned response in the mid-term development plans of the survey respondents.
Participants mention price, qualification and availability of the workforce as the most important factors for successful business.
WHAT EXPECTATIONS DO YOU HAVE WHEN IT COMES TO THE REVENUE OF YOUR COMPANY IN BULGARIA DURING 2018?
79%
15%
6%
It will get better
No expectations for change
No answer
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WHAT PLANS DO YOU HAVE FOR THE FURTHER DEVELOPMENT OF YOUR BUSINESS IN MID-TERM PERIOD (DURING THE NEXT 3 YEARS)?
38% 21%
18%
18%
12%
6%
To expand within the current city of operation
H1 2018 | Sofia Industrial Market Overview | Colliers International
41%
To expand within your current location
To expand within other locations in Bulgaria by renting new premises
To expand within other locations in Bulgaria by purchasing new premises
To expand in other/ current locations by purchasing a developing business
No expectations for change
No answer
PLEASE, EVALUATE TYPICAL FOR YOUR BUSINESS ENVIRONMENT FACTORS, USING THE SCALE FROM 1 TO 6, WHERE 1 IS VERY BAD AND 6 - EXCELLENT? Importance level for your business
Satisfaction level for Bulgaria
Geographical location Infrastructure Customs procedures Legal system Tax system Diesel/petrol prices Public administration Political stability Availability of skilled labor force Qualification of labor force Price of labor force 1
2
3
4
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FORECAST 46,000 sqm of modern warehouse and logistics space for rent are expected to be available by the end of the year.
State industrial zones will continue to develop and grow in number in the coming years.
Opening of new locations and the expansion of already-established companies from the automotive sector in Bulgaria will remain a trend in 2018.
Rental levels are likely to remain stable.
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FOR MORE INFORMATION
Daniela Boytcheva Manager Industrial & Logistics Services +359 2 976 9 976 daniela.boytcheva@colliers.com
Adriana Toncheva Senior Market Researcher +359 2 976 9 976 adriana.toncheva@colliers.com
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Copyright Š 2018 Colliers International.
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