Mihail Chobanov and Magdalena Tosheva on the Sunday morning block of bTV
On February 13, 2022, Mihail Chobanov, founder and owner of BULGARIAN PROPERTIES and Magdalena Tosheva - senior estate agent in the company, participated in a report on the real estate market in Bulgaria in the morning block of the popular TV channel bTV.
Radiana Bojikova, reporter from bTV, made a thorough review of the housing market with the help of Mihail Chobanov and Magdalena Tosheva, an urban planner from Sofia Plan, construction entrepreneurs from Plovdiv, a lecturer at the University of Economics in Varna, the chief architect of Varna and 📊 data from BULGARIAN PROPERTIES and NSI.
The review highlighted the data on the new construction from the National Statistic Institute, which shows that 2021 is a record year for housing construction. The data show that there is more than 15% growth compared to 2020. The highest growth is at the end of 2021 compared to the end of 2020.
The increase in the completed residential buildings is over 43%. In one year, their number has jumped from 928 to 1329. The number of homes in new buildings is growing compared to older ones - by nearly 50%.
There are three cities with record growth in housing construction - Sofia, Plovdiv and Varna.
In addition to the construction growth, an increase in housing prices was also reported. For Sofia, the growth is 10%, and the price depends on the specific property, where it is located, whether it is new construction which is currently most in demand. Growth continues this year.
The data of BULGARIAN PROPERTIES show that the cheapest neighborhoods in the capital of Sofia are Lyulin, Nadejda, Obelya and Tolstoy, and the most expensive are the center, Lozenets, Ivan Vazov, Oborishte and Krasotva Vada, which is one of the most sought after areas.
The pandemic has also changed demand. Buyers are now looking for more 2-bed apartments, Southern neighborhoods are preferred. They are now more inclined to give more money for larger spaces, so that they have a place to isolate, if needed. The small 3-bed apartments are also in high demand, as there is an additional separate room that can be used as a home office.
What are the reasons for the rise in prices and the boom in new construction? Experts explain:
A record in transaction volume and demand, which definitely exceeds supply. This is how Mihail Chobanov, property developer and owner of BULGARIAN PROPERTIES, summarizes 2021.
'We have reached the levels from the previous boom back in 2008, which was very big and bubbled the market for several reasons - the financial crisis, the huge expectations of investors and the disappearance of foreign buyers from the market. While now the situation is very different. The market is more mature and driven by Bulgarian developers and clients', sums up Chobanov.
'Corona virus is just one of the growth factors. Others are negative interest rates in banks, extremely low levels of interest rates on mortgages, inflation and the traditional value of Bulgarians to own a home. Whatever the yield on real estate, it will not be negative. I think in 2022 we will have a positive market trend, whether in terms of prices or supply and sales', he added.
According to the estate agent Magdalena Tosheva, the Bulgarian buyer is inclined to make deals for housing even before the start of their construction. 'People prefer this because they have a bigger choice. The most sought after are the southern districts of Sofia - Krastova Vada, Malinova Dolina, Vitosha, Studentski grad.'
She showed the viewers of bTV a 2-bed apartment of about 127 sq.m. in the hit complex Vitosha View in Krastova Vada district at a price of about 255,000 euros. 'For comparison, in the most desirable neighborhoods, for projects that are now starting, prices range between 1,300 and 1,400 euros / sq.m.'
Watch the vide here (in Bulgarian):
See the 2-bed apartment in Vitosha View seen on TV and call Magi on 📱 +359 882 817 458 for more info and viewings.
Check out the new phases of complex Vitosha View
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