ECONOMY: not bad, all things considered
All is well that ends well, and the most recent economic data from Bulgaria proves as much. The second quarter got off to a bad start as on Apr. 2nd the US “reciprocal” tariffs shocked the business community across the world. Despite its limited exposure to the US market, Bulgaria’s EU trading partners were heavily affected. That same month economic sentiment dropped, as did production indices in manufacturing and services, while domestic and external trade volumes narrowed.
Fortunately, the situation reversed after the US rolled back tariff rates for 90 days. In May and June, sentiment recovered, production in services edged up, domestic trade expanded, and uncertainty in manufacturing and retail diminished. The quarter ended on a high note with final approval of Bulgaria’s accession to the Eurozone at the start of 2026. GDP growth in Q2 is expected between 1.5% and 2.5% y/y, lower than the 3.1% y/y posted in Q1.
SUPPLY: MORE RETAIL PARKS
Supply picked-up 30% q/q in the three months to June 30, with the completion of some 25,152 sq m of new retail space, entirely in the retail park segment. This volume reflects the partial opening of two new facilities – Parkmaxx Plovdiv and RP Rakovski – as well as the continued expansion of XOPark Sofia and other projects.
The retail park stock reached 621,000 sq m spread across 61 locations. The volume of space in construction narrowed slightly to 159,000 sq m among 14 park facilities, while further 175,000 sq m were in planning phase in another 14 projects. Retail park stock is expected to exceed 700,000 sq m by the end of 2025 and race past 800,000 sq m by the end of 2026 – at which point there will be more space in park complexes than malls.
DEMAND: fashion leads the way
Demand picked-up 12% q/q with 75 newly opened stores for near 34,000 sq m. Openings in malls accounted for 59% of the store count and 43% of the store space. Fashion retailers were most active, taking up almost 8,000 sq m, followed by electronics retailers, and mixed retailers (like KiK, Pepco, Tedi) with 6,000 sq m and over 4,000 sq m, respectively.
Store activity in shopping malls was particularly strong in Paradise Center and Serdika Center with 15 new outlets between them. In the retail park segment, Parkmaxx Plovdiv and XOPark Sofia stood out with 20 new outlets together. Four brands entered the market during the quarter – Salsa Jeans, Office Shoes, Tous, and Anna Cori – all taking-up space in shopping malls.
PRICING: malls edge higher
The vacancy rate in malls and parks remained low across the country. Prime rents in shopping malls in Sofia climbed to €46 /sq m, while rents in the city’s retail parks stood unchanged at € 13.0 /sq m. Prime yields in malls remained flat at 7.5% and slipped to 7.25% in park facilities.
