20.10.2015 Sofia: 6% increase of property prices and 20% more sales
'The average purchase price of apartments in the capital city of Bulgaria for the first 9 months of 2015 was 781 Euro/sq.m. compared to 738 Euro/sq.m. for the same period last year. The calculations of BULGARIAN PROPERTIES based on data from the Registry Agency also show that there was a 20% increase in the number of completed deals in Sofia for the first nine months of 2015 compared to the same period last year.
Thus, we already have a clear vision of how the year is going to end – with around 6% increase of property prices and 20 to 30% more sales' commented Polina Stoykova MRICS, Managing Director & Head of Research at BULGARIAN PROPERTIES.
According to data collected by BULGARIAN PROPERTIES the average price of the sold apartments in Sofia in Q3 of 2015 is 794 Euro/sq.m. compared to 780 Euro/sq.m. for Q2 of 2015 and 750 Euro/sq.m. for Q3 of 2014. Accordingly, the increase in property prices in Sofia amounted to 6% on a yearly basis and 1.8% on a quarterly basis.
The average purchase price of an apartment in Sofia in the Q3 is 66,500 Euro.
Number of sales
For the first nine months of the year, the increase of the number of property sales in Sofia is 20%, according to calculations of BULGARIAN PROPERTIES based on the Registry Agency. For that period, in the capital city there are 16,838 completed deals, compared to 13,888 for the same period of 2014.
In Q3 the increase on an annual basis is 10%. The completed deals for the period are 5,547 compared to 5,063 in Q3 last year.
Parameters of the sold apartments
In Q3 most of the completed deals are with 1-bedroom apartments. According to the data of BULGARIAN PROPERTIES, they constitute 60% of the sold apartments in Q3. Although there is an increased interest towards 2-bedroom flats, most of the completed deals in Q3 are with smaller properties, with prices between 40,000 and 60,000 Euro.
The average area of the sold apartments is 80 sq.m. The brick-built properties from second to fourth floor are most preferred.
Sales by districts
The demand is the highest for the city center, the Southern districts, also the ones located at the foot of Vitosha Mountain, as well as for Mladost district in the Eastern part of the Bulgarian capital. There is also a stable demand for districts like Vitosha, Students town and Manastirski livadi where there is a good supply of new quality construction with prices between 650 and 750 Euro/sq.m. The highest property prices are again in the city center and Lozenets – 1 100-1 200 Euro/sq.m.
Time on the market
In Q3 we hit a record for the time it takes to sell a home in Sofia. According to the data of BULGARIAN PROPERTIES, the average stay of the properties on the market before being sold is 50 days in Q3, compared to 73 days in Q2 and 96 in Q3 of 2014. That indicates that the average time it takes to sell a residential property in Sofia was practically cut in half during the last year and the market is much more liquid and dynamic.
Summary of the year, trends and perspectives
2015 brought the so long waited recovery of the property market in Sofia. The number of completed deals increased and the prices rose by 6%. Construction activity doubled – there are twice as many issued new building permits and started buildings this year. The demand increased significantly and we also witness a returned confidence in the property market with more deals happening “off-plan”.
In this developing market the competition among banks is increasing. In search of customers, they have started offering better terms and conditions for mortgage loans and lower interest rates firmly below 6%.
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