Increased supply and freezing of the prices, even a slight decrease – these are the most common forecasts for the real estate market in Sofia, Bulgaria next year. The overpriced offers will appear to decline, most real estate agencies say. These conclusions are due to both the boom in new housing permits issued and the number of the completed projects already on the market.
Experts says that the price of every property will start to depends more and more on the quality of the construction works and the additional extras that it offers. Most of the clients are interested in finished and fully furnished apartments.
More than half of the deals are made after a price compromise from the owner of the property.
Most brokers agree that the strongest factor driving the real estate market in recent years is the low mortgage interest rates. They were lowered again in 2019 to levels of 2.8 to 3.3%, and some of the banks offer even promotional interest rates.
In Bulgaria, as well as in Europe the economy is growing, so there are no signs for a crisis in the real estate market.
More and more people living in Sofia
As the capital of Bulgaria is growing more and more every year, the city is becoming bigger and bigger. Properties in the suburbs of the city are more attractive to the buyers now, because the prices are lower than in the city center, but the connection with the central parts of the city is good – the tube is used from more than a half of the population in Sofia. Also, most of the apartments there are situated in complexes with parking areas, so you do not have to worry where you will leave your car. This problem is very common in the central parts if you do not have a paid parking space, garage or sticker for the green/blue zone.
Big European companies are very interested in Sofia as a place for investment. Bulgaria is known as the Silicon Valley of Southeastern Europe since many years. After ten years of EU membership software business in Bulgaria is the best performing sector in the ICT industry. One of the factors that attracts so many companies to do business in Bulgaria is the low corporate tax rates of 10 percent. As of July 2019, Bulgaria’s ICT sector is characterized as stable and constantly growing, making it one of the most profitable sectors in Bulgaria.
Another factor is that Bulgaria ranks World`s 20th in internet speed. The average download speed is 33.5 Mbp and upload – 22.8 Mbps.
As we notice higher and higher growing of the market, the clients usually spend more time for taking the decision what kind of property they want to buy and where exactly.