Average home prices maintained their levels in the first quarter of 2024, reports Arco Real Estate
In the past quarter, there was no decline in housing prices, they kept their levels as they were in the last quarters of the past year. According to BNB data, newly granted loans continue to grow, and in the first months of the year a growth of over 40% was registered on an annual basis. Arco Real Estate’s leading brokers say that transactions happen relatively quickly, clients do not need too much time to think before buying a property. Mortgage transactions have an advantage, and a large percentage of them are realized after a discount in the price during the purchase negotiations. Expectations for 2024 are positive and successful for the real estate market. This is according to an analysis by Arco Real Estate.
In the first quarter of 2024, we observe a decrease in the number of real estate transactions compared to the fourth quarter of 2023. In Sofia, 7,298 transactions were registered, in contrast to the previous quarter, when 10,075 transactions were registered in the capital. In Varna, 3,170 were registered compared to 3,860 for the fourth quarter of 2023. In Plovdiv, we also report a decrease in recorded transactions – 3,365, in contrast to the previous quarter, when they were 4,870. A decrease is also observed in Burgas, where 1,668 transactions were recorded compared to 2007 in the previous quarter of the past year. The total number of registered real estate transactions for the entire country in the first quarter of 2024. was 43,799 compared to 62,398 in the fourth quarter of 2023. There is a slight decrease compared to the same period of 2023, when the total number of registered transactions was 44,461. Despite the described decreases, the first quarter was the strongest in Sofia for the period since 2008. so far, when 8035 trades were entered. According to preliminary data of NSI as of 07.02.2024. the newly built residential buildings put into operation for the fourth quarter of 2023 for Sofia (the capital) are 267, for Plovdiv – 230, for Varna – 174, and for Burgas – 123. The newly built residential buildings put into operation for the country total 1529, and the newly built homes in there are 6350 of them. Compared to the same period in 2022. buildings are 57 fewer or by 3.6%, and dwellings in them increase by 1101 or by 21%. Of the newly built residential buildings put into operation in the fourth quarter of 2023. with reinforced concrete construction are 76.8%, with brick – 19.5%, with another – 3.3%, with panel – 0.4%. The relative share of newly built houses is the largest – 78.3%, followed by housing cooperatives 14.1%.
Search
According to Arco Real Estate data, in the first quarter of 2024 the two-room and three-room apartments with the purpose of living are the most sought after. First place among the searchers is occupied by three-room apartments, followed by two-room apartments by a very small margin. Interest in multi-room and one-room apartments remains weaker. We are looking for finished and furnished properties. No serious changes were observed compared to the previous quarter of the year, except for a slight decrease in the demand for plots and houses. Currently, demand continues to outweigh supply.
The average prices of housing are holding their levels and there are no significant changes compared to the previous quarter, as for a two-room apartment they are between 1,700 – 1,900 euros/sq.m., and for a three-room apartment between 1,600 – 1,800 euros/sq.m. These values can vary widely depending on which area the property is located in and what condition it is in. In the center of the Capital, prices start at 1,900 euros/sq.m., with the average price for the area of an ideal center being around 2,500 -3000 euros/sq.m., again depending on the exact location of the property and its characteristics. In neighborhoods such as Yavorov, Izgrev and Lozenets, the average prices reach 2300 – 2800 euros/sq.m., and in some cases even over 3000 euros/sq.m.
In the first quarter of the year, the properties in the southern areas of Sofia and the wider center were once again the most sought after by buyers. Neighborhoods such as Lozenets, Vitosha, Hladilnika, Krastova Vada, Manastirski Livadi, Ovcha Kupel are preferred. Other areas preferred by wealthier buyers are Simeonovo, Dragalevtsi, Pancharevo. Customers are looking for advantages such as the possibility of parking, proximity to shopping chains and children’s and educational institutions, as well as to metro stations of the city metro.
Offering
In the first three months of 2024 no significant changes are observed in the offered properties. The most offered apartments are again under construction, due to the many ongoing construction of new buildings in the capital. Interest in these properties is increasing again, after there was a decline and mistrust in this segment for certain periods.
To a large extent, the interest is also due to the limited supply of ready-made homes in Sofia and the other major cities of the country. There are also completed properties that have been offered for a long time, but are more difficult to realize due to the fact that they are overpriced. The supply of houses near Sofia continues to be limited, as is the supply of office and commercial space.
The supply is most active in the areas of Malinova dolina, Krastova vada, Vitosha, Ovcha kupel, due to the active construction of new buildings in these areas. The average prices of the offered properties are in a wide range between 1300 euros/sq.m. up to around 2,000 euros/sq.m., depending on the stage at which the property is completed, where it is located and what its characteristics are.
Plovdiv
The first quarter of the new year begins dynamically for the real estate market in Plovdiv as well. The apartments that are wanted are mainly two- and three-room apartments, located in the newly formed residential areas of the city. These complexes offer buyers both proximity to the city center and space and tranquility. And here, as in Sofia, most transactions take place with the help of bank lending. According to the agency’s data, there is not a very high growth in demand, but no change or decline in property prices is registered either. There is a decrease in the demand for plots of land compared to the previous quarter of the year, as well as for houses.
Average property prices can vary from 1000 to around 1500-euro/sq.m. depending on the characteristics of the property and its location. Preferred areas in the city are Karshiyaka, Hristo Smirnenski, Trakia. According to the agency, there is a slight interest in the search for commercial and office space.
The main share in the offer remains for the apartments, with mainly two- and three-room dwellings being offered. The supply is most active in the Belomorski areas with an average price of around 1,050 euros/sq.m., Hristo Smirnenski and Yuzhen, where plaster and screed properties are offered at prices of 850-1,200 euros/sq.m., and Center with prices in the range between 1500-2000 euros/sq.m
Vacation properties In the first quarter of the new year, no serious differences were observed in the vacation property market compared to the past months of 2023. Here again, demand exceeds supply. Properties that have good characteristics and an acceptable price quickly become the object of a transaction. There are also overpriced properties that do not attract buyers and stagnate on the market. Clients prefer properties with a nice location and close to the seashore.
The average prices of studios remain around 1,000 euros/sq.m., those of two-room apartments are around 1,050 – 1,100 euros/sq.m., and those of three-room apartments – around 1,200 euros/sq.m. These prices may vary depending on the location, features and quality of the particular property. In the region of the Northern Black Sea coast, the most popular properties for purchase are properties in the resorts of Golden Sands, St. St. Constantine and Elena, c.c. Chaika, the cities of Balchik and Kavarna. The resorts on the Central Black Sea coast – Nessebar, Saint Vlas and Sunny Beach remain one of the most preferred for buying real estate. In the Southern Black Sea region, interest in buying a home is strongest in Sozopol. The offer of the studios is the strongest, and their prices are in the range of 50 – 60,000 euros. The average price of two-room apartments is around 70,000 euros. Other desirable shopping destinations on the Southern Black Sea coast are Lozenets and Tsarevo.
