[size=85:2dot9n36]novinite 12 July 2010

Bulgaria Shopping Mall Space Doubled in H1- Report

The stock of contemporary shopping mall space in Bulgaria doubled in the first six months of 2010 with the opening of five new shopping malls, reaching 452,000 sqm in total, a realtor report says.

Another five shopping mall projects are expected to open until the end of 2010, which will add 126,000 sqm of contemporary stock to the market, according to Colliers International’s retail market overview for the first half of 2010 in Bulgaria.

“Although most of the newly completed retail space in Sofia has generally been absorbed so far, a surplus in markets such as Varna, Ruse and Stara Zagora is expected based on the economic slowdown and the fact that available retail space significantly exceeds potential retail demand”, comments Iglika Yordanova, manager Retail Services at Colliers International.

Rental rates in shopping malls continued to fall in the first half of 2010 with 5% in Sofia and Varna respectively, while in Plovdiv and Burgas the average fall in rental rates is 15% and 19% respectively.

The big-box segment is marked by the continuing boom of the discounters, the active development of consumer electronics companies and the opening of the first big outlet centre in Bulgaria.

The opening of new shopping malls affected the performance of the main High Streets. Brands are concentrating in the malls, where rental rates are lower, pushing overall vacancy to 10% in Sofia, according to Colliers’ report.

The demand for contemporary retail space is driven primarily by European and Turkish brands through regional franchisees directly, it adds.

High Street sees an average decrease of 20% across all submarkets.