Sat, Nov 21 2009

Construction of 160 000sq m of office space in Sofia stalled

Tue, Oct 20 2009 15:20 CET byNick Iliev 1418 Views 3 Comments
Construction of 160 000sq m of office space in Sofia stalled

Tanya Kosseva Boshova
Photo: Julia Lazarova

Several construction projects in Sofia, pertaining to the building of office complexes with total office space of about 160 000 sq m, have been frozen indefinitely, Anton Slavchev, manager of the offices and business parks department at Colliers real estate consulting company, told Dnevnik daily on October 20 2009.

Complexes exceeding 900 000 sq m of new office space are currently under construction in Sofia but it was revealed that many of them will be slashed.

The market for business offices and retail space was one of the most branches in the sector most affected by the global economic downturn, and according to Colliers, since the turn of 2009, rents have decreased by about 20 per cent on the back of seven years' continuous growth.

"There is simply no way that all newly constructed office buildings will find their tenants, but very large projects under construction will be continued regardless," said Tanya Kosseva Boshova, chief executive of the European Trade Centre (ETC) currently under construction on Tsarigradsko Chaussee.

Source: propertywisebulgaria.

Comments

Anonymous Jim Mon, Nov 02 2009 20:58 CET
Inappropriate comment?

Very amusing. It will lease up, what is everyone worried about? Competition? Get rid of the flaky developers and even flakier agents!!!

Anonymous ex expat Sun, Oct 25 2009 23:16 CET
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My friend they have NO business plan whatsoever...

Construction of 55M euros complex on the Black Sea and the sole owner did not even know what was a feasability study and already 26 000SQ meters of building were constructed and half the golf course was shaped, with minimal topographic and geological survey...centralist structure, no thrust in anyone...UJAS...this country is a nightmare believe me! and I am married to a bulgarian and lived there...

Anonymous expat Wed, Oct 21 2009 11:27 CET
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"..but very large projects under construction will be continued regardless,"
sure what economical sense does it make to stop a started project.
what I always was wondering what business plans those hundred of "real estate cowboys" look like. Of course they could not foresee the global economic crises. I agree, but most of the problems in BG are not related to the global crises, the real estate bubble in BG was home grown ! and so obviously predictable !!! no excuses dear real estate cowboys !

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