Top offers for the purchase of Bulgarian real estate in Sofia
The real estate market in Sofia is the most unique and complex in the country, thanks to the great demand for space, be it residential, retail or office space. Generally the most popular areas are in the center and quarters of Lozenets , Doctor’s Garden , Simeonovo , Boyana , Dragalevtsi and others .
In this section you will find many residential apartments up to Western standards , community gated houses , commercial properties and offices .
The real estate sector in Bulgaria is growing at a dizzying pace. According to a recent study by the “Information and specialist consultancy” office of the Bulgarian Consulate in Naples, average prices (calculated on data from the main Bulgarian brick portal www.imoti.net of apartment sales have exploded with a 40% increase in the period June 2007 – March 2008. Rents also increased considerably over the same period of time, by 20%. Also 2016-2019 the real estate market increased average between 20% and 70%!
The strength of the residential market is the annual yields. For example, according to the Consulate’s report, a residential property in Sofia, based on the highest average prices of about 1114 euros per square meter, can yield around 5.5%. This similar percentage estimate also applies to apartments with a maximum average monthly rent evaluation of 5.13 euros/sqm. In some prestigious areas of the capital, such as those in the centre, and for luxury properties, the annual return on investment is as high as 7% and above.
The market is still supported by strong international demand. “Real estate is one of the sectors of the Bulgarian economy – explains to Liberomercato Consul Gennaro Famiglietti – with the highest inflow of foreign investment in recent years. In 2007 the sector attracted direct investment for an amount of 1.681 billion euros out of the total foreign investment in the country of 5.7 billion, which puts it back in the top position in the ranking of sectors of greatest interest to investors”.
According to the Consulate’s report, this year’s prices are expected to remain stable at previous levels. However, an increase is expected for certain types of real estate, such as those located in the centers of major cities and for prestigious properties, which are much sought after by representatives of foreign companies. In the capital, the three semi-central districts Lozenetz, Iztok and Ivan Vazov, where Vitosha Boulevard originates, the most elegant street in Sofia with its shops and restaurants, are considered very interesting. In them the possibilities of new construction are now rare: as a result, it is very likely that new offers will be reduced and will have higher prices.
The office segment in 2007 still showed a consistent growth trend and was characterised by high demand for space and insufficient supply. This market imbalance is expected to be overcome after mid-2009 when many new office spaces, currently under construction or in the design phase, will be ready. The estimates of the real estate company Forton indicate that currently in Bulgaria are under construction offices for a total area of 754 thousand square meters, while they are in the design phase for a total of 707 thousand square meters.
With regard to prices, the Consulate cites Cushman&Wakefield’s annual report on the international market. At the end of 2007 the average rent of class A spaces (with central location, high comfort and efficient public transport connections) in the capital was 15-18 euro/sq.m. per month: up to a maximum level of 26-30 euro/sq.m. in the centre of Sofia. Class B rents, on the other hand, were 9-14 euro/sqm. With regard to other Bulgarian cities, the most expensive rents for class A offices were registered in the cities of Varna and Burgas on the Black Sea, respectively of 10-12 euro/sq.m. per month and 12-14 euro/sq.m. per month. Considering these price levels, the annual return for 2007 on an office investment in Sofia was 7.5%: a slight decrease of around 7% was estimated for 2008.
Sofia has the largest community of expatriates in Bulgaria , with foreign companies , diplomatic missions and headquarters of large Bulgarian and international companies pushing for space . It is the only region of the country with large population increase.This is why rents are high in Sofia and anyone who wants to buy a property for pure investment would find Sofia as good as anywhere to buy it. Sofia also has the highest property prices in Bulgaria, but also the best return on investment.
Sofia is the largest and most developed city in Bulgaria. Almost 1/4 of the population of the country is concentrated there . The government of Bulgaria and almost all foreign embassies are located in Sofia . Most of the foreign investment companies Head Quarters also reside in the capital . This makes Sofia one of the best real estate investment positions in Bulgaria . Property prices in Sofia are rising and there are excellent rental opportunities due to the high population density and high standard of living in the city.
Real Estate Investment in Bulgaria
Plovdivv is the second largest city in Bulgaria. It has just been named European Capital of Culture by the European Union, which means that the city is a focal point for the next twelve months and there are already several urban revitalization projects underway.
Sofia, the capital, is also seeing growth with a new metro line in the southern part of the city. Neighborhoods such as Vitosha and Krastova are becoming residential centres of some merit. They used to be industrial areas. Today they have been converted into housing.
The price trend in Plovdiv is consistent with the capital Sofia, where mid-range housing increased by about 9% last year. Houses in the luxury segment recorded an increase of 6%. Although these are not double-digit growth numbers, the amount of investment that comes from being the Capital of Culture will significantly increase these numbers in the coming year.
Foreign real estate investment
Choose your country and get in touch with a Smart Agent. Have them send you more information to understand the pros and cons of a foreign real estate investment. Investment in real estate is, in fact, a long and complex process. Let’s approach it the right way. Ask for news, details and reassurance in your native language: Italian. The Smart Agent group was in fact created to help Italians to make their real estate investment in the safest and most transparent way. They are all real estate agents who know their target market well and all speak perfect Italian. It will be easier for you to ask questions and get answers.
Think global and act local
You will have the security of buying, selling or renting a house at the best market conditions. The Smart Agent network, in fact, facilitates the search of all those who want to buy home beyond their national borders but also to those who want to turn the sale of their home to foreigners:
For those who buy: A Smart Agent can help you find a property abroad. Make a real estate investment in absolute security. All the agents of the group speak perfect Italian. In this way you can communicate with ease and simplicity. Contact a Smart Agent also in Italy if you need to move from one city to another.
For those who sell: A Smart Agent is able to promote the property to Italian and foreign buyers. Your property will be visible in all countries where the group is present and to all their clients. In fact, by opening up to the international market you will increase your sales and business opportunities;