Preferred type of Property
Investors in real estate in Sofia prefer to purchase fully-furnished two-bedroom apartments of about 60m². Most investors will not buy apartments on the first and the last floor of a building. Properties on the first floor are susceptible to thefts and noise pollution, have less light, and lack privacy as pedestrians may be able to observe the people living in those properties. Properties on the last floor may be seriously damaged in case of roof leaks.
Investment properties are usually located in university neighbourhoods, thus allowing the investors to easily find tenants (students often look to rent a property near a campus). The proximity of a metro or a tram station is also highly desirable as many tenants search for apartments having a good transport connection.
According to their attractiveness for investment purposes, the regions of Sofia can be divided into three classes, namely, high class, medium class, and low class. Below, we examine these three classes in more detail. Next, we discuss a region of Sofia (Krustova vada) which is a trendy location for purchasing investment properties.
High Class Regions
The high class regions of Sofia are the regions “Geo Milev”, “Iztok”, “Malinova dolina”, “Reduta”, “Borovo”, “Vitosha”, “Dianabad”, “Lozenets”, “Centre”, and “Oborishte”. Those regions have an established reputation of well-connected and developed regions.
Medium Class Regions
The medium class regions include “Drujba 1 and 2”, “Slatina”, “Belite Brezi”, “Goce Delchev”, “Strelbishte”, “Nadejda 1”, “Tolstoi”, “Lulin Center”, “Banishora”, and “Suhata Reka”. Although less attractive than the high class regions, those regions are rapidly developing and investments there may in some cases be even more profitable than the investments in the high class regions.
Low Class Regions
The low class regions are “Pavlovo”, “Studentski grad”, “Orlandovci”, “Moderno predgradie”, “Zona B-5”, and “Levski”. The low interest of the investors in purchasing properties in those regions decreases the demand for properties there and makes the finding of an investment property easier than in the high and medium class regions.
Highlighted: Krustova Vada
People willing to invest in trendy areas need to consider the region “Krustova vada”. Due to the newly built metro station “Vitosha”, there has been a steady increase in the number of construction projects in the region. Many investors may still be able to purchase a property in a construction stage, thus benefiting from affordable real estate prices.