Some 500,000sqm of new office space is expected to be offered on the market in Bulgaria over the next six years, according to forecasts by Forton International. Most of the space will be included in a dozen large projects, which will be finalised in 2008-12. In the medium-term, this ample supply of office space is expected to result in a slight decrease in rents of around 10%.

At present, however, there is a shortage of quality office space, Forton CEO Valeri Valchev said. Therefore returns will remain high over the next couple of years. Currently they range between 9 and 11% a year. The same opinion is shared by Colliers International. According to the consulting company, in the medium term annual demand in Bulgaria will be for around 50,000sqm of new office space. At the same time some 286,000sqm of projects are currently under construction and due to be completed in the next three to five years. Therefore the increase in the volume of space will not be felt this or next year.