The crisis, the business and the increased supply of new Sofia buildings
The crisis is still being strong on the Sofia market and it results in plenty of changes in all spheres of life including the apartment accommodation in Sofia. Owners of large companies are changing offices, as they think the rent is too high and it is more advantageous to terminate their Sofia rental contract and move to a brand new office in a modern building at a better price. Other business people try to re-negotiate the rental rates they have, keep the offices and optimize their costs, but this is not always a successful process. Many of the banks explained that desire for negotiation as a normal market practice that could be performed in a certain state of the market in order to manage the costs in an effective way.
According to the investors and the brokers the tenants of Sofia offices are those in a better position, however the landlords are reluctant to make changes. The companies with short-term contracts and those with less time for the notice of departure are in a better position to change their contract conditions. The landlords of these business companies are more likely to satisfy the company’s desires. They realize the situation they could be in - a big risk to lose a tenant and difficulty to find another one on the same level of rents.
Sofia apartments are actually still in the top ten destinations for the purchase of property. The decline in property prices makes these accommodations in Sofia appealing to foreigners. This proves that the interest of foreign citizens to purchase housing, holiday apartment or a house is high and property owners in Sofia, who are willing to sell their Sofia accommodation are able to offer them to numerous of potential buyers from Europe.
