Bulgarian Retail Supply Shooting Upward

VARNA, BULGARIA-Led by a concentration of mall development in this Black Sea coastal community, more than 2.1 million sf of new retail is presently under construction in Bulgaria, according to new research compiled by Colliers International. That figure reflects an increase of nearly 1.5 million sf through mid-year when compared to the first half of 2006.

Despite the surge of development, industry observers such as Colliers Bulgaria Managing Director Atanas Garov maintain that the escalating supply can be absorbed. “Prospects are very promising,” says Garov. “The Bulgarian retail market is still vastly undersupplied, and tenants are bullish on their expansion plans.” Even so, the research can be helpful in assessing what markets offer the best opportunities, offers Philip Bay, regional director of Colliers International Southeast Europe.

Colliers’ data shows three major new shopping centers that broke ground this year have had a substantial impact, including the Carrefour Mall and Serdika Center, both in the Bulgarian capital of Sofia. Besides those two projects, the Stara Zagora market celebrated the groundbreaking of Mall Stara Zagora, a complex that will feature 200,000 sf of retail space when completed in 2009.