Apartments in Sofia average 1,545 euros/sq.m. m

Apartments in Sofia average 1,545 euros/sq.m. m
Apartments in Sofia average 1,545 euros/sq.m. m

They buy more three-room apartments for their own use

The price increase in three years is about 40 percent

A number of factors have a positive influence

Apartments in Sofia rose in price to an average price of 1,545 euros per square meter, according to data from a real estate company. Over the past three years, housing prices in the capital have grown by nearly 40 percent. Among the reasons for this is the high demand for real estate and the rising cost of construction as a result of rising material prices and labor costs.

The average price of apartments bought this year in Sofia has risen to 132,800 euros, compared to 115,500 euros in 2022. This shows that market activity has shifted to larger apartments against the background of the prevailing purchases of two-room apartments last year. The main reason for this is that most buyers are currently choosing a home for their family. While last year, transactions aimed at investment and protecting the saved money from high inflation prevailed. When a person buys a home for his family, he prefers to have more rooms. But when buying for the purpose of investment, two-room apartments are more profitable, because it is easier to find a tenant for them, and their prices are lower.

Apartments continue to rise in price due to inflation. In addition, the supply of homes for sale is also increasing this year, which leads to a balancing of the market, brokers comment. Last year, the properties that came on the market could not meet the increased demand, which led to a significant increase in prices.

The increase in housing loans granted by banks and low interest rates are a positive factor for the real estate market. The other macroeconomic factors affecting the housing market also continue to have a positive impact – unemployment is very low and people’s incomes continue to rise. The increase in income keeps the ratio of apartment prices stable to the average income, which makes housing in Sofia much more affordable compared to properties in the capitals of Western European countries. As a result, over 92% of the people in the country live in their own homes, while in economically more developed countries there is a large share of people who cannot afford to buy a home and live in rent.

Inflation continues to be a significant driver of real estate investment growth, especially amid continued low interest rates on bank deposits and limited safe investment alternatives.

Buyers are very diverse in terms of profile – both in terms of age and profession. In Sofia, properties are bought both by people who simply want to move to a larger apartment, and by those who have come from another populated place and want to settle permanently in the capital. This leads to a stable demand for housing.

There is a greater supply of panels

60 thousand euros for a home in a nice area in Blagoevgrad

They take up to 110 squares

The most frequently purchased properties in Blagoevgrad are three-room dwellings with an area between 76 square meters and 110 square meters.

In the areas of Blagoevgrad preferred by buyers – the center, the wide center, the area around the stadium, it is very difficult to find a home with a price below 60,000 euros, real estate brokers said. It is a classic three-room apartment in an old brick cooperative, which does not need a major renovation, which includes replacing the electrical and plumbing installations.

Most of the homes available on the market in Blagoevgrad are in the “Elenovo”, “Strumsko” and “Alen mak” districts, but these are mainly panel apartments, a large part of which also need repair. The prices of these homes are significantly lower.

The most frequently purchased properties in the city are three-room homes with an area between 76 square meters and 110 square meters, real estate brokers said. People most often buy a home for their family. Sellers are most often people who need money or see that prices are high and decide now is a good time to make a profit.

Banks in the city very carefully assess the financial capabilities of people who want to take out a mortgage loan for the purchase of a home. And they lend to people with high incomes who can afford to pay the monthly installments.

The article is in bulgaria

Tags: Apartments Sofia average eurossq .m


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