18.02.2004 Sofia residential property market sees rising demand
Information by Sofia Morning News and Bulgarian Properties Ltd.
The average price of residential Real estate in Bulgaria's capital by December 2003 stood at EUR 400 per sq.m., according to the latest data from ADIS Real Estate. The figures reflect a surge in demand on the Bulgarian property market, which is seen in all categories of residential areas.
Demand is concentrated primary in the big urban centres and the Black Sea coastline, where it exceeds the supply.
Low levels of unemployment in Sofia last year - almost 3,6% and the constantly expanding credit market with 80% increase of the mortgage landing in 2003, are the main factors that contribute for the brisk demand on the local property market. These features are also characteristic for the Black Sea towns of Varna and Burgas, where the steady economic development and increasing investments in the tourism industry attract more people from inland Bulgaria. Data shows the increase in real estate property prices in Burgas and Varna to be by some 17% higher than the average for the country.
The statistics of the International Real Estate Federation (FIABCI) show that London tops the ranking for residential property prices among capitals and major cities of the countries, members of FIABCI - almost 60 in number, with over EUR 9000 per sq.m., outstripping New York, Tokyo, Singapore and Paris. Sofia occupies the last place in the ranking.
The CEO of ADIS, Deyan Kavrakov forecasts the rising trend in residential prices to continue gradually in 2004, though on a smaller scale. An increase can be expected in high-quality real estate such as gated communities, which were more recently discovered by local investors.
Note by Orlin Orestov, CEO of Bulgarian Properties Ltd.
We highly recommend purchasing an apartment in the centre of Sofia or in the prestigious central residential areas like Lozenets and Ivan Vazov.
For the last 18 months the property prices in these areas have gone up with approx. 80 %. Only for the last 6 months prices have grown with 20-30%
At the moment the biggest demand is observed for studio flats, 1 and 2 bedroomed apartments in the ideal centre of Sofia, where the prices are approx. 700 Euros per sq. m. floor area. If we take for comparison similar properties in the capitals of other Eastern European Countries like Hungary (Budapest), Czech Rep. (Prague) and Poland (Warsaw) we will see that the prices there are starting from 1200-1300 Euros per sq. m. Not mentioning Moscow where the prices are over 2000 Euros/sq.m.
Bulgarian Properties Ltd. are the first and only real estate agents in Bulgaria to offer GUARANTEED RENTAL WITH IMMEDIATE 2 OR 3 YEARS RENTAL CONTRACT FOR MOST OF ITS PROPERTIES FOR SALE IN SOFIA.
For all our valued customers we will provide a number of useful services which will not be offered by anyone else:
- Full property management: FREE OF CHARGE.
- No ongoing costs: ALL FOR OUR ACCOUNT
- Refurbishment by our professional team of builders.
- Furnishing to get the property to the standard for renting out.
- No agents commission for purchasing property in Sofia.
- Significant rental return from 8 to 10 % per year - pure profit for the owner!
And that's not all: next few years the apartment prices in the these areas will be growing with 20 to 30 % per year.
Now is the time to buy in Sofia!
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