Life beyond the ring road

The Ring Road is not only a trade mark of the capital Sofia. More and more people in the big cities around the country identify a perimeter in which they would like to live. But the have some conditions – to have fast access to the city’s downtown, to the amenities and to their workplace.

The trend to migrate to areas around the city is a recent one in Bulgaria. With the reconstruction of parts of Sofia’s Ring Road the access to the settlements beyond it has become faster and easier. The expansion of the underground network in the capital is another factor. If there are convenient parking lots and good transportation links the villages around the city become very attractive.

According to specialists in the sector property buyers are already looking for a new lifestyle. The overdevelopment in the capital, especially in the southern regions, is not that attractive anymore. It is true there are many unsold properties within the city limits but they have bad infrastructure, poor layout and functionality.

The southern slopes of Vitosha Mountain cannot be developed any further. But there are areas beyond the Ring Road which would be attractive places for living, in a good ecological environment. There are ready projects for a few satellite settlements at the foot of Lozenska Mountain but they cannot be built due to the lack of infrastructure. This cannot happen without the participation of the state, developers say. Although they are included in Sofia’s town development plan as areas for residential construction they remain outside the developers’ scope.

In the developed countries the trend to escape the big city is not new, but in Bulgaria the process is not as noticeable yet.

The rural property market in 2011

According to the data of BULGARIAN PROPERTIES prices of rural properties remained stable in 2011, as there is a slight decrease in some areas. At present the interest is focused on more expensive rural houses which are ready to live in.

In 2011 prices in the areas of Bourgas and Stara Zagora remained similar to those in 2010 and in some areas like Plovdiv, Yambol, Kardzhali and Pleven there was a drop in rural property prices. There was very little interest in villages in northwestern Bulgaria – lower than even in the slow 2009, as in 2011 there was no interest from the traditional buyers – the British.

Average prices of rural properties in 2011* according to BULGARIAN PROPERTIES data:

• Villages around Sofia – 24,700 Euro
• Regions of Varna and Dobrich – 22,000 Euro
• Region of Bourgas – 23,400 Euro
• Region of Plovdiv – 13,500 Euro
• Region of Stara Zagora – 14,100 Euro
• Region of Vidin – 9,900 Euro
• Region of Veliko Tarnovo – 26,150 Euro
• Region of Yambol – 7,900 Euro
• Region of Kardzhali – 9,200 Euro
• Region of Pleven – 5,200 Euro
*Average prices are calculated on the basis of actual concluded deals

Fluctuation of average prices of rural properties through the years according to BULGARIAN PROPERTIES data:

Average prices and increase/decrease year-on-year:

• 2004 – 11,300 Euro
• 2005 – 15,450 Euro +37%
• 2006 – 18,510 Euro +20%
• 2007 – 24,800 Euro +34%
• 2008 – 30,800 Euro +24%
• 2009 – 14,300 Euro -53.5%
• 2010 – 11,600 Euro -18.8%
• 2011 – 15,900 Euro +37% - prices are similar to those in 2005 but sales have dropped by 90% compared to 2005

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