The total value of completed transactions in the second half of 2020 was almost 90 mn euros, and for the whole year - 292 mn euros.
26% of this volume was due to transactions with offices, another 26% to development land, followed by retail space (20%), hotels (17%), industrial space (10%) and others (1%).
The pandemic affected the yields levels in all three segments, at the end of 2020 they were: offices - 8.25%, retail space - 7.75%, and industrial space - 9.25%.
Office market
The supply of class A, B and C office space market in Sofia reached a total of 2,388,380 sqm and recorded a 3% increase in the second half of 2020. Year-on-year growth was 5%.
Total take-up for the last six months of 2020 was 51,100 sqm, and for the whole year - 107,600 sqm, equating to 39% decline compared to 2019.
Demand during the period was driven by the following sectors: IT and outsourcing (47%), professional services (18%), financial services (13%), utility supply (11%), retail (5%) and others (7%).
Average vacancy rate on the market was just over 13%, representing approximately 2% increase in the second half of the year.
The average asking rents held their levels from the first half of 2020, respectively for class A - 12.5 euros per sqm and for class B - 10 euros per sqm.
Industrial market
The supply of modern industrial and logistics space in Sofia in the second half of 2020 increased by just over 2% and reached 1,125,500 sqm.
Demand in the last six months of 2020 was driven by logistics companies (42%), e-commerce (32%), furniture and DIY (10%), life science (8%) and manufacturing (7%).
