Sofia Housing Market in Q1 of 2018. Analysis by BULGARIAN PROPERTIES

After the best year for the property market in the last decade, 2018 starts more moderately with a more mature housing market in Sofia. Again, we see a growth in all indicators, but these growths are now much smoother.

Buyers continue to consider their purchases well, they look at as much properties as possible on the market and don’t buy at any price. This elasticity in demand has, as we expected last year, slowed down the rise of the residential property prices in Sofia. At the beginning of this year it is slightly below 11% on an annual basis and the average prices remain below the barrier of 1,100 €/sq.m.

The continuing GDP and income growth, low unemployment, and still low interest rates on mortgage loans in 2018 will continue to have a favorable effect on the residential property market, but with a lower dose of enthusiasm and stubbornness than those we have observed over the past two years.

Sales Volume

According to the data of the Registry Agency for the first quarter, 5631 real estate sales were registered in Sofia compared to 5023 for the same period in 2017, resulting in an increase of 12% on an annual basis.

The data also shows that the growth rate of the property sales in Sofia is accelerating (from around 8% in 2015 and 2016 and 6% for 2017).

New Construction

BULGARIAN PROPERTIES data show that new construction continues to account for over 60% of the sales in Sofia.

New building permits issued in Sofia according to NSI data are 201 for the 4th quarter of 2017. Thus, 2017 ended with 827 issued permits for new residential buildings in the capital compared to 695 in 2016, a growth of 19%.

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