Analysis of BULGARIAN PROPERTIES for the housing market in Sofia in Q1 of 2021
After the successful 2020, in which the Bulgarian real estate market remained almost unaffected by the pandemic, the housing market in Sofia started a new, even more successful 2021. This is the conclusion of the analysis of BULGARIAN PROPERTIES for the real estate market in the capital of Bulgaria in the first months of 2021.
Rising transaction volumes, increased demand and rising prices marked the first months of the year for the Bulgarian property market amid new waves of the COVID-19 pandemic.
'The housing market made a very strong start in 2021. The activity was greater than that in the beginning of 2020 before the pandemic, and from the same period of 2019. At times it was even euphoric. It seems that the housing market has overcome the pandemic crisis and continues its upward cycle', commented Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES.
The new market trends caused by COVID-19 continue to be relevant this year as they unfold on a larger scale and become more intense due to more information about the market and a clearer awareness of the new housing needs.
Buyers have readjusted to the new reality and are very pragmatic in choosing a property, assess well their own needs and budgets and make decisions relatively quickly. Owning a home is increasingly important in the goals and plans of the households. In addition, the role of real estate as a secure asset to which people turn to invest their savings in times of uncertainty and crisis has once again been reconfirmed.
Available mortgage financing at low interest rates, income growth and a relatively stable economic environment in Bulgaria continue to have a positive impact on the housing market.
Average prices and annual change
The average price of apartments sold in Sofia in the first quarter, according to BULGARIAN PROPERTIES, is 1,150 Euros/sq.m. compared to 1,120 Euros/sq.m. at the beginning of 2020. This represents a growth of 2.7% on an annual basis - slightly higher than the growth of 2.3% recorded in the last quarter of 2020.
The average total price of the purchased apartments is 109,530 Euros compared to the average for 2020 of 100,260 Euros. In the data we see both the impact of rising prices and the change in the structure of purchased homes and the growing share of larger apartments.
The data of BULGARIAN PROPERTIES shows that the newly concluded deals in Sofia in the first quarter of 2021 increased by 20% compared to 2020 and with about 10% compared to 2019. This shows that the housing market has not only caught up and recovered from the pause during the lockdown in Spring 2020, but also that it continues its upward cycle.
In addition to the active conclusion of deals, we also have the entry of already concluded transactions in new construction buildings, which are now being put into operation and the ownership is being transferred.
This is reflected in the data of the Registry Agency, which show that in the 1st quarter of 2021 in Sofia were registered 6,683 property sales compared to 5,285 for the same period in 2020, which is an increase of about 26% on an annual basis.
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We have now closed the second quarter of the year and we can say with certainty that 2021 will be stronger for the real estate market in Bulgaria than 2020. It will even be stronger than it used to be before the pandemic. We are entering the second half of the year with a real estate market in a top form, with a very high demand and a rapid absorption of available supply.
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