site.btaMixed-Use Developments Emerge as Key Retail Property Trend, Colliers Says

Mixed-use developments are emerging as a key trend in the retail property market, according to a first-half 2026 review of the sector in Bulgaria by professional services and investment management company Colliers, received by the Bulgarian News Agency (BTA) on Monday.

Construction continued in Sofia during the first half of 2026 on projects launched in 2025, including Holiday Park Vitosha, Estrea Park Hadzhi Dimitar and Outlet Village Sofia, Bulgaria’s first open-air outlet village, located next to XOPark Sofia, the report said. Construction of Estrea Park Nadezhda also began during the period.

Modern retail space in Sofia remains concentrated mainly in the city’s eight leading shopping centres, which have a combined area of more than 358,300 sq m. Vitosha Boulevard, the capital’s main shopping street, has 31,300 sq m of retail space, while the five operating retail parks provide 123,000 sq m. Three retail parks under construction are expected to add another 71,500 sq m.

Vitosha Boulevard’s vacancy rate is 2.7%, with 40% of the vacant space concentrated in a single property. Fashion retailers account for the largest share of its tenant mix, at 34%, followed by food and beverage operators at 26%. The latter share excludes areas occupied by outdoor seating and terraces.

Vacancies in established shopping centres remain limited or nonexistent, with the average rate at 2.3%.

Prime retail rents have remained unchanged despite mounting upward pressure in the most sought-after locations. Tenant demand remains concentrated in established shopping centres, retail parks, the city centre and fast-growing business and residential districts. Prime monthly rents in Sofia are EUR 59 per sq m on the main shopping street, EUR 46 per sq m in shopping centres and EUR 13 per sq m in retail parks.

In the short term, discount retailers are expected to continue expanding, although intensifying competition is likely to lead some chains to restructure and optimize their store networks. Retail parks are expected to evolve into larger, multifunctional complexes combining shops, services, food and beverage outlets and entertainment. The trend towards mixed-use developments combining retail, residential and office space is also expected to continue.

Rents are expected to remain stable, with slight increases for high-quality projects. This outlook is underpinned by the limited availability of vacant space in prime locations, growing interest from domestic and international retailers and stronger consumer activity, Colliers said.