Bulgaria’s commercial residential market is set to boom in 2019 and 2020. According to the Eastern European Construction Forecasting Association (EECFA), office construction will be the key driver, and is foreseen to grow by over 10% on average between 2019 and 2021.
Office-related construction is largely concentrated in the capital Sofia, where existing office space amounted to two million square meters at the end of 2018, with a further 400,000 square meters set to be completed before 2021.
Sofia is an attractive city for companies that benefit from a favorable mix of skilled youth, competitive labor costs and rent levels to create and expand in spheres connected to information technology, shared services and business process outsourcing.
However, demand may reach its logical limits in the future due to a shortage of skilled labor, the increased use of Artificial Intelligence solutions, and the varying behavior of office workers seeking more flexible and remote workstations.