Bulgaria’s commercial property market has experienced steady growth over the past decade, driven by its strategic location, improving infrastructure, and competitive costs compared to Western Europe. Sofia, the capital, remains the primary hub for commercial real estate activity, with Plovdiv, Varna, and Burgas emerging as important secondary markets.
The office sector in Sofia has shown resilience, supported by the continued expansion of the IT, BPO, and financial services industries. Prime office rents in Sofia range between €15-€18 per square meter per month, with vacancy rates averaging around 12% as of early 2025. Demand remains strong for modern, sustainable office spaces, with green-certified buildings becoming increasingly desirable.
The retail sector is undergoing transformation, with a gradual shift from traditional high street retail to large shopping centers and retail parks, particularly in Sofia and regional cities. E-commerce growth has also driven the development of last-mile logistics facilities. Prime shopping center rents stand at approximately €35-€40 per square meter per month.
The industrial and logistics sector is one of the strongest performers, benefiting from Bulgaria’s location on key European transport corridors and its low labor and operational costs. Prime logistics rents in Sofia are around €5 per square meter per month, with high demand for warehousing and light industrial spaces, especially near major highways and logistics hubs.
Investment activity has remained stable, with local investors increasingly active alongside international funds. Bulgaria offers attractive yields, typically 7.5%–8% for prime office and retail assets, and around 8.5%–9% for logistics properties.
Bulgaria’s EU membership, favorable tax regime (10% corporate tax), and improving infrastructure continue to position the country as a competitive destination for commercial real estate investment in Southeastern Europe. Key risks include political instability and labor market challenges, which investors monitor closely.