The Metro stations and the Malls are changing the real estate market

The opening of new shopping centers and the completion of infrastructure projects are the main factors which affect and define the market for commercial areas in the country for the next years.

Four new Malls will be opened until the end of 2013

Commercial areas in Bulgaria has reached 630 thousand square meters after the opening of the Galleria Mall in Burgas. The new shopping center has added 35,000 square meters to the net trade area and by the end of the year two more shopping centers are expected to be opened -Paradise Center and Bulgaria Mall.They will add 113,000 square meters more.

Another major project is expected to be completed by the end of 2013 - Sofia Ring Mall, which will have 69,000 square meters trade area.

How the developing of the trade areas will affect the real estate market?

"The forthcoming opening of new shopping centers in the capital makes the market highly competitive The investors are attracted from the good and communicative location. The developed infrastructure also plays role.The pace of development of environmental infrastructure are crucial for fast and easy access to the mall without losing time in traffic. This factor is crucial in the choice of a shopping center to another by the investors and the final consumers.

The Battle between the Malls and shopping streets

With the opening of new Trade Centers, the prices of the properties on the trade streets decreased with 5% in the first half of the year.Now for example the average rents are € 38 per sq m per month in Sofia, 28 euros per sq m in Plovdiv in Varna and Burgas are respectively 22 and 23 euros.

In the capital, three new projects for Malls are enhancing the competition between the Trade Centers. Some of the existing projects may undertake marketing repositioning strategy.

Main engines on the market today are food chains, construction hipermarkerti, fashion operators and restaurants. The new trend among traders is to target locations with good infrastructure, headed by the new stations, which gradually changed the geography of shopping.

These Centers are expandings their network, opening stores on key locations near the new stations and urban residential projects.

"Carrefour" opened three new supermarkets in Varna and Burgas. "Lidl" continues to cover more locations- stores in Burgas, Ruse, Stara Zagora and Vratsa.

Central metro stations are the new key shopping places and subway station "Serdika" is an excellent example. There has been a mix of retail supermarket, drugstore, fast food restaurants and etc. Positioning near the subway took also "Piccadilly"market, which opened two new stores in the first half of the year. Market competition is supported by rapid expansion of chains."Bauhaus" opened its first store in the capital which is 20 000 square meters; Baumax extended the network with two stores in Rousse and Varna. Mr Bricolage opened a second store in Plovdiv.

A positive impact has the Swedish girl fashion chain Hennes & Mauritz (H & M), which opened its first stores in shopping centers in Sofia,Varna and Bourgas. Most fashion brands still prefer the franchise model to the direct entry.

However 41% of them wish to expand their commercial network by the end of the. Commercial centers in Sofia remain the most preferred location. Lately Bourgas is also gaining popularity.