Sofia stands out as one of the most dynamic office markets in Southeast Europe (SEE) at the start of 2026, recording rising rental levels and declining vacancy rates. Alongside sustained demand for high-quality office space, hybrid work models – combined with an increasing emphasis on physical presence in the office- are shaping market dynamics in Bulgaria’s capital.
These findings are outlined in CBRE’s market data for the first quarter of 2026. CBRE is the world’s largest commercial real estate services and investment company.
Against a backdrop of limited new supply and strong leasing activity across the SEE region, the Bulgarian office market is demonstrating clear upward price momentum, driven by intensifying competition for high-quality space.
Unlike Zagreb and Ljubljana, where availability is structurally constrained and options for new occupiers are limited, Sofia offers a combination of higher—but steadily declining—vacancy, solid demand, and a substantial pipeline of planned modern office developments. This balance between the constraints of highly mature, fully absorbed markets and the scale of Belgrade positions Sofia as a key point of interest for occupiers, investors, and international companies seeking growth, flexibility, and long-term potential in the region.
Market Performance
In Q1 2026, prime office rents in premium locations reached €20/sq.m per month, marking a noticeable quarter-on-quarter increase. Class B buildings registered modest rental growth, with average levels of €12.50/sq.m. Vacancy decreased to approximately 12%, dropping below 10% in several key business districts—placing Sofia among the strongest and most active office markets in SEE.
“This dynamic clearly shows that the market is being driven by heightened competition for high-quality, functional office space, amid a more pronounced return to office work and the maturation of hybrid models. At the same time, we are seeing a relocation trend from Class B to Class A buildings—not driven by prestige alone, but by the need for offices to offer quality, comfort, and an engaging working environment,” commented Hristo Karakostov, Head of Office Leasing for Bulgaria at CBRE SEE.
One new office project totaling 3,800 sq.m was delivered in Q1 2026, bringing Sofia’s total office stock to approximately 1,889,800 sq.m. The expected completion of more than 150,000 sq.m of new space by the end of 2026 is set to increase competition. Nevertheless, rental levels are expected to maintain their upward trajectory, supported by the delivery of high-quality projects.
Hybrid Work Shapes New Demand
Hybrid work has transformed the office into a strategic tool for talent attraction, employee retention, and the cultivation of corporate culture. This shift underpins the strong performance of Sofia’s office market and companies’ renewed move toward modern buildings.
A clear trend toward increased physical office presence is evident, reshaping tenant expectations. The office is no longer simply a workplace, but a hub for meetings, collaboration, and a sense of belonging. In response, companies are increasingly opting for modern, technologically advanced buildings that support blended working models.
“Flexible office solutions and coworking areas are also increasingly being integrated into large office complexes, becoming a natural extension of the corporate environment,” added Karakostov.
Demand–Supply Balance
Sofia remains one of the two primary drivers of future office development in the region—alongside Ljubljana—positioning Bulgaria as a balanced market between growing demand and upcoming supply expansion. The IT and outsourcing sectors continue to be the main demand drivers, but other industries are becoming increasingly active.
Rising demand is also observed from companies in professional services, administrative support, and the financial sector, as well as from retail, pharmaceutical, gambling, manufacturing, and large corporate organizations.
Tenant decision-making continues to be influenced by factors such as proximity to public transport, parking availability, and access to shopping centers and amenities that enhance employee convenience and experience.
The SEE Regional Outlook
The Southeast European office market entered 2026 marked by a pronounced shortage of new supply, following 2025—the weakest year for completed office space in the past decade.
Demand remains stable, largely driven by lease renewals, while low vacancy levels in key capitals—Sofia, Zagreb, Ljubljana, and Belgrade—continue to support rental growth.
Belgrade remains the region’s most dynamic office market, benefiting from strong investment interest and sustained expansion of its office stock, primarily concentrated in New Belgrade. Vacancy stands at approximately 4%, with moderate upward rental movement. In Zagreb, a structural shortage of office space and vacancy below 1% in central areas continue to underpin a strong leasing market, despite the gradual delivery of new projects expected through 2027.
Ljubljana was the most active market during the period, with over 40,000 sq.m of new supply delivered. In comparison, development activity in other capitals remained more conservative. Nevertheless, all markets across the region continue to register low vacancy rates, ranging between 2% and 4% in Q1 2026.