Sofia apartments rental market: new trends in autumn 2008
Contrary to the sales market in the capital which is slowing down, the rental market in Sofia is characterized with a stable growth and the prognosis are for increasing of the interest towards rents in the next few years. Today, many people feel more secure to rent an apartment than to take a mortgage with a high interest rate which has the potential to go up. That is why the growth in the number of rental deals is significant if compared to the same period last year, when property investment was stable and stress-free.
The statistics show that the average price of the apartments in Sofia that are rented out is approx. 650 Euros. The interest is mainly towards furnished apartments, which are offered fully equipped and are serviced by a property management company. The tenants prefer also apartments in the top centre or in gated complexes outside the centre, which come with a porter and a garage.
Sofia is a large city, but the areas that are preferred for renting are similar to those that are preferred for investment. The research shows that the highest demand for residential properties and apartments for rent is in the southern and the eastern districts of the capital, as well as the city center. The most sought after residential quarters are those located along Bulgaria Blvd., Lozenets, Vitosha and Dianabad, Mladost and Slatina, Reduta, Borovo, and of course, the center. Currently in these districts are available many recently constructed apartments that are completed and furnished and are now offered for rent. These apartments vary in size, the small ones being in high demand.
Traditionally, the autumn season is characterized by increased demand for real estate properties and apartments for rent, a process which is a fact even this year despite of the financial crises in the world. The crises however has changed the market situation, reflecting in higher requirements regarding the quality of the properties, slower decision making process, slower conclusion of the deals, and higher expectations from the services offered by the real estate agents.
According to a recent research, Sofia city is among the best places for investments and city breakouts. The Bulgarian capital has seen a huge growth in the commercial and the economic sectors provides a pleasant and stable business environment, and offers quality of education plus high level of security.
The prognosis of the real estate agents for increase in the rental levels, have proven to be right even if the increase rate is slow. For the last three months that increase has been around 5 % and is seen in the districts of Mladost and Buxton, as well as Geo Milev. This tendency is not surprising, as those people who did not succeed in getting a mortgage are now looking for a decent even if unfurnished apartment to rent. On the other hand, many foreigners are coming for business and pleasure but they insist on serviced apartments in the central areas.
