Vitosha boulevard ranks fourth in Europe in terms of decline in rents

Vitosha boulevard in Sofia ranks fourth in Europe in terms of decline in rents of commercial space over the last year, showed a survey of Colliers International consulting company. At the beginning of 2011, rental levels along this shopping street in our capital reported a decrease of 13.33% and ahead of it in the ranking were only Nezavisimosti avenue in Minsk (with a 18.18% decline), Mageru street in Bucharest (16.67%) and Novi Svyat in Warsaw (14%). According to the analysis of Colliers International, the average monthly rent along Vitosha boulevard currently stands at about €65 per square metre.

Let us remind our readers that, according to data of Cushman & Wakefield, Vitosha boulevard ranked 22^nd among the most expensive streets in the world in 2005, stepping down to the 28^th place a year later and falling by another four positions in 2007. This trend persisted and in 2008 Vitosha boulevard ranked 35^th. In 2009, it fell to the 40^th position and after that lost its place on the global list of the 50 most expensive shopping streets.

According to experts in the branch, the market will not change significantly during the second half of 2011 and they rule out an increase in rental prices.

The data of Forton International about the rents along Vitosha boulevard are similar to the levels cited by Colliers International. According to Forton, the prices are in the range of €55-65/sq m. This trend is likely to continue until the end of the year for several reasons. On the one hand, the current state of infrastructure does not encourage the tenants. The ongoing repairs limit to some extent the traffic of people and this results in a relative shrinkage of consumption. The commissioning of the new metro line in this area will stir up the trade, according to Forton.

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