Sofia rentals more advantageous than purchase
Leading financial experts agree that during the crisis, the financial institutions should be more active than they are now. Currently Sofia apartment rentals are far more advantageous than the buying process because of the interest rates given by the banks. For that reason the rentals of apartments in Sofia went up and in the final three months of the last year recorded a rise of approximately 5%. According to the real estate agents, the period is appropriate to change the Sofia apartment, the office or shop you are renting and to negotiate a cheaper price. This is valid for regular people who want to invest in an apartment, traders and small business owners. The landlords are open in negotiating rates and providing bonuses.
At the same time, young working people go out actively on the property market. The purchasers are between 25 and 35 years of age and believe that now is the time to buy themselves an own home. Some of these buyers sell property they have inherited to purchase one or two apartments that meet their needs. Other buyers try to escape from the problems encountered in their current homes. The lack of parking spaces in the downtown zone force the young people to sell their property in the center of the capital and to settle in peaceful locations where this problem does not exists. The location remains a key factor in the search of a one-bedroom apartment in Sofia to rent or buy. Often buyers and tenants prefer the neighborhood where they used to live at.
Many buyers however believe that prices of apartments in Sofia will continue to fall, which leads them to postpone the decision on making a purchase deal. The buyers are looking for homes that are smaller and easier to maintain, like studios, followed by one-bedroom apartments. In the past four months, the average selling price of Sofia housing was 49 600 Euro, and the average area - 53 sq.m. Sales in the capital that are exceeding 80 000 Euro were less than 7 % for the second half of 2009. Year 2010 should be even better for the Sofia apartment customers and business properties, at least for those who have adapted to the new economic conditions. The oversupply makes the buyers the one to dictate the rules. Positive signals come from the banks, some of which have made lower interest rates on mortgage loans.
