The Housing Market in Sofia in 2017 - Growth in All Indicators

BULGARIAN PROPERTIES' market analysis

2017 proved to be the most successful for the real estate market in the last 10 years, with growth in all indicators - sales, property prices, new construction volume, new housing loans at historically lowest interest rates.

All this was supported by accelerating GDP growth and income, a record low unemployment and expectations of stable economic development over the medium term.

"At the end of the year, the supply of properties in Sofia was more limited as a result of withdrawals from the market by vendors and the depletion of stocks in the newly constructed buildings, especially the 1-bedroom apartments. This process was accompanied by a resumption of price increases in Sofia after balancing the market in the late summer and early autumn, "said Polina Stoykova, Executive Director of BULGARIAN PROPERTIES. "Since the beginning of the new year, the market has returned to a normal rhythm and the supply is good at the moment. A lot of interesting offers have come out on the market, and this is what keeps the buyers active."

"It is interesting to note that although there is a tangible increase in property prices in Sofia and they have crossed the border of 1,000 Euro/sq.m., buyers do not seem to be in a rush to buy. There are times when they are retiring in anticipation of better offers that fit more precisely to their requirements and capabilities. A great deal of buyers are searching for a property for quite a long time, sometimes more than a year. This elasticity in demand will gradually slow the rise in prices as buyers are reluctant to buy at any price," she added.

"There is already a retreat from overvalued properties and areas, and a redirection to other areas. At the same time, supply is on the rise and more and more newly constructed buildings and secondary market properties struggle for the buyers' attention. Sellers need to be very careful when forming the pricing in order to make their properties marketable."

Average Prices and Availability of Properties

BULGARIAN PROPERTIES’ data shows that in the 4th quarter of 2017 the price growth in Sofia has resumed and the average price of the dwellings in Sofia rises to 1,095 1,000 Euro/sq.m. from 1,060 1,000 Euro/sq.m. during the 2 previous quarters. The annual price increase compared to the 4th quarter of 2016 is 14%. The average purchase price of dwellings in Sofia is 98,780 Euro.

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