Blog: Sofia market offering projects and buildings in progress

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Sofia market offering projects and buildings in progress

2009-06-10 16:10:47

Because of the global financial crisis, there are currently many investors who are not in the position to organize the start of the construction of the development plots they have bought. There are also other investors who have started the construction but are not able to complete the complex they were working on. These investors are looking to sell they projects and complexes to business people who are now stepping on the market.

Because of the global financial crisis, there are currently many investors who are not in the position to organize the start of the construction of the development plots they have bought.

In the first three months of the year, the price of the one-bedroom apartments in the prestige regions of the capital Sofia has went down with almost 8 000 Euros. Today, the accommodation places in Sofia’s posh district ‘Ivan Vazov’ are offered at prices starting from 1200 Euros and go to 2600 Euros per sq.m. Expensive Sofia apartments are still being viewed and purchased, but the transferring of the ownership rights takes much more time than before. The buyers are searching for old brick apartments or fully completed flats in new buildings with Certificate for Habitation, as the off-plan complexes are seen as very risky segment of the market.

The other Sofia districts that are facing reduction of the property prices during the last year are Buxton, where the price is reduced to more than ten percent, and Borovo where the price has went down with nine per cent. At the same time, the western parts of Sofia city have a drop in the price of approximately 20 %, especially in the districts of Zapaden Park, Razsadnika, Ilinden, Sveta Troica. The centre of Sofia however has preserved its prices of 2000 – 3000 Euros per sq.m. Most of the property deals are signed for Sofia apartments positioned in Mladost and Lyulin, Drujba and Lozenets and they reveal a general reduction of approx. ten percentages.

The luxurious Sofia apartments are still in demand and the presented offers are usually bought at the price on which they are offered, which comes to show that there is a meeting point between the demand and the supply. The real estate agents however, predict that there will be a change in this sphere as well. To sum the information up, according to the statistics published in various printed and online media, the prices of the Sofia apartments have gone back to their price levels in year 2007.