The Bulgarian retail space market demonstrated exceptionally dynamic development during the first half of the year. According to a detailed analysis by the business real estate consultancy Cushman & Wakefield Forton, completed new space marked a remarkable 47 percent increase compared to the same period in 2025. The analysis highlights the resilience of the sector, which managed to maintain its pace of development despite inflationary pressure in the second quarter, further compounded by the military conflict in the Middle East.
By mid-year, the market reached a total volume of 1.58 million sq. m, with an almost complete balance between the two main formats. Data shows that 49 percent of the space is accounted for by 74 retail parks, while 51 percent is occupied by 26 shopping malls. However, this trend is expected to shift very soon: thanks to active projects, retail parks are on track to surpass shopping malls by the end of the third quarter.
In the second quarter, a total of 16,700 sq. m of new retail space was completed, with the entire volume concentrated in the retail park segment. This figure includes finishing works on projects such as "Pirgos Park" in Burgas, sites in Kostinbrod and Radnevo, as well as the expansion of "Holiday Park" in Shumen. Standout entirely new additions for the period include the retail park in Kazanlak, named Park Mixx Centre, and the "Fantastico 48" store in the Orlandovtsi district of the capital.
Construction activity remains high:
- Currently, 11 retail parks are under construction in eight cities with a total area of 131,000 sq. m.
- An additional 166,000 sq. m are in various stages of planning.
Stanimira Pashova, Executive Director of Cushman & Wakefield Forton, notes that demand remains stable and continues to outpace supply, especially in retail parks, where vacancy rates have fallen to 1.9 percent. In the second quarter, 82 new stores were opened with a total area of 34,200 sq. m, compared to 74 stores and 33,600 sq. m a year earlier. Leading categories are:
- Fashion: 23 percent share of new space and 19 new locations.
- Grocery chains: 17 percent share.
- Electronics and appliances: 10 percent share.
- "Health and Beauty": 8 percent share and 10 new locations.
- "Shoes, bags and accessories": 8 percent share.
- Mixed-retail stores: 7 percent share.
- Other segments: 27 percent share.
- Dining and catering: 9 new locations.
The entertainment sector is also reporting growth. The "Kino Arena" cinema chain opened a hall in the retail park in Dobrich (DS Park Dobrich), following examples from the last three years in Sofia and Kardzhali. Expansion in the capital is also underway with a new hall in Serdika Centre mall.
The vacancy situation varies depending on the type of property and location:
- Retail parks: 1.9 percent (a decrease of 0.2 percentage points compared to the first quarter).
- Capital city malls: an increase to 3.6 percent or about 14,000 sq. m.
- Plovdiv: unchanged at 2.7 percent or about 3,000 sq. m.
- Central high street in Sofia: between 1 percent and 2 percent or less than 600 sq. m of vacant space.
Rental levels in shopping malls are growing steadily, with rent for prime space in Sofia reaching 48.50 EUR/sq. m – an increase of 0.50 EUR compared to the previous quarter. In Varna, the increase is 1 EUR, with similar growth seen in Plovdiv and Burgas. For retail parks, rents remain stable at 13 EUR/sq. m for properties between 300 and 600 sq. m.
The investment market recorded three deals for nearly 30 million EUR, including Mall Varna and a property on the central high street in Sofia, all realized by local owners. Yields remain stable – 7.5 percent for shopping malls and 7.25 percent for retail parks.