Sofia house prices see strong start to 2017

Sofia’s property market is enjoying a strong start to 2017, according to BulgarianProperties.

Sofia’s property market is enjoying a strong start to 2017.

Bulgaria’s capital saw an active first quarter this year, preserving the growth trend that was recorded last year.

“2017 started with an acceleration of the previous year’s dynamics, especially strong since the beginning of March. Price growth is now approaching 20 per cent on an annual basis. This is a significant increase but it must be kept in mind that growth has accelerated since spring last year and we are currently comparing with the lower prices at the beginning of 2016,” comments Polina Stoykova MRICS, Managing Director of BulgarianProperties.

“There is no doubt anymore that the market is in an upturn. The main challenge will now be to predict how long this growth will continue and where will be the breakpoint, which is the most difficult to forecast. Surely we can say that we are still at the beginning of the upward curve, with expectations that this trend will continue for at least 2 years. The economic factors contributing to the market upturn are very different from those of the previous booming cycle when foreign demand was the main driver. The market picture looks very good, there are no concerns and this time we can say we have a sustainable growth.”

The average proeprty price in the city is now approaching 1,000 euros per square metre, which matches the level recorded in 2007.

“It took 10 years for the market to regain the positions of the previous boom, but this time with much better economic indicators and the tendency for these levels to remain stable,” notes Stoykova.

The average price of the sold apartments in Sofia is now 985 euro/sq.m., up 2.6 per cent and 18 per cent annually. The average purchase price of a home is around 90,000 euro, up from 836 euro/sq.m. in early 2016.

The sales of new build homes continue to account for more than 50 per cent of the total sales in Sofia and the interest remains high. Both buildings in the initial stage of construction and already completed buildings are available for sale. Property prices are rising steadily as construction progresses, and the available homes are running out quickly, so off-plan purchases are very common.

The main interest continues to be to the southern and eastern districts of Sofia, with the access to the underground playing an increasingly important role. There is also interest to the center of the capital city, where old construction is predominant, although there are also boutique buildings with 1-2 apartments per floor which enjoy a great interest.

“It is noteworthy that the area of Zone B-5 around Mall of Sofia also attracts interest due to the lower prices and its central location. In the wider central neighborhoods there are areas with a lot of new construction, and in which there is access to the underground. These areas are becoming more and more attractive for the buyers,” comments Stoykova.

“The interest in Krastova Vada remains high and the trend is this neighborhood to become one of the most preferred areas of Sofia. Beginning new projects and visibly improved infrastructure contribute to the turning of the area in one of the most modern areas.”

Mladost and the area around Business Park Sofia is another attraction zone for both those working there and the many buyers who want to live in one of the most modern quarters of Sofia – Mladost. The average price there is already around 1000 euro/sq.m.

The most expensive quarters remain Lozenets, Ivan Vazov, the city centre where prices are between 1500 and 2000 euro/sq.m., with offers for more than 2000 euro/sq.m. on the market already.

Sofia property prices and sales improve

26th April 2016

Property prices and sales in Sofia are improving, as 2016 enters the spring buying season.

The Bulgarian capital city has seen a “considerable increase” in the number of sales in the first quarter of 2016, according to BulgarianProperties.com, which says the market has got off to a “very strong start” this year.

“We have witnessed a very big interest towards new developments in Sofia. The buyers are becoming more and more confident when buying properties off-plan. We often witness a very high percentage of apartment sales even before the start of the construction,” comments Polina Stoykova MRICS, Managing Director and Head of Research at the company.

“Buyers seem to be a bit behind with the market trends, since a big share of their demand is for properties of up to 50,000 EUR, and the supply of such properties is very scarce, especially in the most desirable districts and in the new development complexes,” Stoykova adds.

The average price of apartments sold in Q1 2016 was 835 EUR/sq.m., according to the site, continuing the trend of prices climbing above the 800 EUR/sq.m barrier, which was passed in Q4 2015.

Apartments in Sofia were selling on average for 815 EUR/sq.m. in Q4 2015, up from 700 770 EUR/sq.m. the year before, with values now up 2.5 per cent quarter-on-quarter in the first three months of 2016 and up 8.4 per cent year-on-year.

The site’s research also found that the average price of apartments sold in new developments for Q1 of 2016 was 950 EUR/sq.m., around 100 EUR/sq.m. higher than the overall market average.

“The average overall price of apartments sold over the first 3 months of the year was 79,800 EUR, and of apartments in new developments – 90,000 EUR. This illustrates the preferences of the buyers and their willingness to pay higher prices for apartments in new high-quality developments,” adds the site’s report.

Sofia property sales up 20pc

23rd October 2015

Sales of property in Sofia have soared 20 per cent this year, as the Bulgarian capital begins a long-awaited recovery.

New research by BulgarianProperties.com shows that transactions have surged in the first nine months of the year. The analysis of data from the Registry Agency shows that 16,838 deals were completed between January and the end of September 2015, up from 13,888 during the same period in 2014.

The trend has built momentum as the year has continued, according to the site, with the annual rise recorded in Q3 2015 hitting 10 per cent, with 5,547 deals completed.

The surge in the past three months has been driven by one-bedroom apartments, notes the research: these smaller units make up 60 per cent of apartments sold in the quarter (the average area of all sold apartments is 80 sq.m.), although interest in two-bedroom flats is climbing.

“2015 brought the so long waited recovery of the property market in Sofia,” comments Polina Stoykova MRICS, Managing Director & Head of Research for the site.

Indeed, prices in Sofia have also enjoyed a rise of 6 per cent in the first nine months of 2015. Construction activity has also doubled, with twice as many issued building permits this year compared to last year.

“The demand increased significantly and we also witness a returned confidence in the property market with more deals happening “off-plan”,” adds the report.

As a result, banks are also now competing with each to offer better terms and conditions for mortgages, with interest rates firmly below 6 per cent.

The city centre is leading the market recovery, followed by the Southern districts, those located at the foot of Vitosha Mountain and Mladost district in the Eastern part of the capital.

Sofia has long been one of the most active parts of the property market in Bulgaria, with both the capital and the Black Sea coast proving most popular among tourists and house-hunters.

Now, the time taken to sell a home in the city has reached a record of 50 days in Q3 2015, faster than the 73 days recorded in Q2 2015 and 96 in Q1 2015.

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