Apartments in Sofia: lower selling prices, higher rental levels
In the last months of year 2011 and the first months of this year, there have been almost no changes in the property market. The tendency is for the prices of the one and two bedroom apartments to be slightly reduced compared to the rental levels for the same type of apartments. At the moment, the prices per square meter of the one bedroom apartments are higher than the prices per square meter of the two-bedroom apartments. The increase in the studio apartments is slightest, and these remain the properties with the lowest selling prices. There is an increase in the rented apartments, which is a trend during the winter when tenants are reluctant to move out and thus they agree with their landlords’ conditions. The analysts on the market shows that there is a 6% decrease when compared the average market prices for year 2011 and those from the previous year. Expectations are that in this year, the apartment prices in Sofia will continue to fall.
The brokers from the real estate agencies in Sofia can not predict whether the fall in the apartments prices will be slight or more serious, but they all agree that the situation on the real estate market will be driven by the tenants and the buyers. The property prices in Sofia in year 2011 were 40% lower as compared with those of year 2008, when the sales of apartments have reached their peak. Currently buyers are looking for apartments at levels 700 to 750 euros per square meter. It is expected these levels to remain the same this year or the market to face a slight decline. The buyers are expected to be young families who are investing in their first home, families seeking for a spacious accommodation and people who have earned money and want to invest for fear that otherwise they will lose them because of the uncertain financial market conditions. The ones that will quickly reach a deal would be buyers dealing with those owners who are willing to make a discount for one reason or another. The demand will be mainly in the lower segment, namely apartments in Sofia with one bedroom, but also luxury properties in the capital, that have high quality of the construction.