Which comes first in a city - the business or property? The issue is complex and the answer usually starts with “ It depends ...”. The example of Plovdiv is telling you something important. On the one hand , the advantages of the second largest city in Bulgaria highlighted ago. Industry Watch recently defined it as the second most - after Sofia attractive destination for business process outsourcing . The sector's development is definitely a catalyst for the city's economy by keeping young people and to attract talent from all over the country .

On the other hand, the companies say that so far the main problem was not lack of staff outside the capital but insufficient number of large and high-quality offices and infrastructure. So somehow out that the two processes have begun to breed each in Plovdiv and swelling of IT companies already moves the housing market. In the first quarter of 2015 started new construction in the hills is 123.3 sq. m, an increase of 54.1% compared to the same period last year, according to the National Registry for new construction and renovations. Largely this is due to the migration process to Plovdiv and increased demand for residential real estate market. On the other hand , entrepreneurial activity in the office market also rose due to low supply and increasing demand from new entrants in Plovdiv companies. Since last year, a clear trend emerged from the IT sector companies and exported service centers to open a second office outside the capital. So in Plovdiv established companies as " Sofica ", Telus, Scale Focus, Unify and 60K . A similar trend noted by the Bulgarian outsourcing association , although reported that 95 % of the sector still concentrated in Sofia . Association President Stephen Bumov however expected in the coming years to continue the development trend of outsourcing in other cities. One of the reasons stated readiness of the smaller universities in the country to cooperate with business.

Advantageous, but not first class

The most active of the office market in Plovdiv, as well as in the capital, are IT and outsourcing companies. Some of the companies decided to open its second office in Sofia instead of Plovdiv, for others it is the first location , and some are already established there decided to expand their business. The main reason for this is that the capital market is becoming more competitive and for IT companies and centers for outsourcing services is becoming more difficult and expensive to hire as qualified staff and suitable offices.

The tendency of the office market in Plovdiv is precisely modernization of existing space and change of use of various objects in order to turn them into offices. Considering the type of companies that are the main driver of demand in Plovdiv , we can say that their criteria are identical , their preferences high class A , located at convenient location offering functional and homogeneous distribution of areas. Rental prices in Plovdiv vary depending on the building and the location of 3.5 to 7.5 euros per sq.m. To compare rental prices on the market in Sofia at the beginning of the year in Class B in the center and outskirts of the capital are respectively 6 and 7 euros per sq.m. For projects Class A average asking prices in the capital are saved about 13 euro per sq m while effective rents range between 10.5 and 12 euros depending on the location and specific requirements of tenants. Plovdiv will continue to be interesting as companies from outsourcing and the IT sector and others wishing to benefit from the positive characteristics of the city - communicative ( connection with highway ) near the capital , availability of airport infrastructure , opportunities for optimization of costs in terms of rental prices and salaries of staff. Choosing to relocate their business in Plovdiv is not a decision that companies are doing at the level of real estate. This is a business strategy for securing adequate services and facilities for their customers.

Source: www.capital.bg