Bulgarian properties - Sofia - Real estate, Market, Investments

     Sofia is the capital of Bulgaria and the biggest city in the country. Sofia is the most developing place, where all public institutions are situated, embassies of other countries, international company branches. The real estate market is most dynamic in Sofia. The prices are higher than in the other locations. There are lots of possibilities for investors. We can offer you a diversity of business & office buildings, new apartment complexes, luxurious houses, land and rentals.
     In last few years prices of beautiful apartments in Bulgarian capital Sofia increased with 30% every year. Expectations are that this increase will continue, but it can not last forever, it will remain eventually in next two years until market reaches its maturity. Bulgaria became popular because of low prices of properties and annual return between 6 and 10% of investment in them.
     Tendency for diversification of prices of Sofian properties on criteria based on their location developed in last year is already clearly expressed. Now the capital is definitely divided on four price zones, among which average prices of square meter living-floor-space reach differences of almost two times.
     The cheapest zone between 380 and 499 euro per square meter built-up area is in endmost panel (concrete) quarters - two parts of Obelia, all parts of Luilin except tenth, Nadezda, three parts of Levski, Ovcha Kupel. In this group are also included homes in Druzba 1, Svoboda, Stefan Karadza, Suha Reka, Tolstoi, and Hadzi Dimitar. Common characteristic of building fund in these quarters is connected with mass panel building in 70thy years of last century. New building is usually constrained in their periphery. Positive side of these regions is concentration of schools and child's places of public, and also availability of sufficient transport lines for moving in the city in most of them.
     Second zone of Sofia is with prices of homes between 500 and 600 euro per square meter. Here are situated so called homes of medium type. Symbol of this zone is Mladost quarter - on one side-mass housing estate, on the other section with many advantages - near city centre, comparatively well developed network of city transport, good view towards Vitosha, lack of industrial enterprises polluting air and surroundings. In addition to four parts of Mladost here are also included quarters Banishora, Borovo, Bukston, Durveniza, Zapaden park and also zones B 18, B 19 and B 5. In the list of real states with the same prices of properties are also quarters in Southern parts of the city -Kniazevo, Lagera, Krasno selo, Pavlovo, as well as Reduta. The big demand of real estates is concentrated exactly here in last one-two years -from one side sections have good reputation, on the other side prices are lower compared with quarters considered as more prestigious. Demand of new buildings in thеsе sections is with special interest and buildings are erected on every free space.
      Third zone of the capital is for homes with prices of 700-800 euro per square meter. These are sections of new middle class which formation is faster and most apparent namely in Sofia, because of availability of enough opportunities for business and earnings. Sections near city centre and also ones in southern direction are situated here, with good infrastructure and full with polyclinics, schools and kindergartens. Presence of South park near them is also highly appreciated - still the vastest green area of the capital. The following quarters belong to this zone: Beli Brezi, Strelbishte, Hipodruma, Hladilnika. Outside south arc where enumerated quarters are situated, the only other quarter joining the list is Geo Milev. Here new building in last fifteen years is intensive, buildings appear everywhere, even over territories designed for extension of South park in direction towards Vitosha Mountain.
     Most expensive four zone of capital includes sections with price of homes over 700 euro per square meter. These are not changing for years four sections where prices are highest and will for sure remain the same at least for one decade. The word is about ideal centre Lozenets, Iztok, Ivan Vazov, Here prices for one square meter built-up area can reach 1000 euro. Building is predominantly low, up to 7-8 floors in exceptional cases. Features of these regions are new buildings, silence, comparatively good for Sofia hygiene, and maintenance of infrastructure.
     There are still many old houses, with great architectural value, built in 30 and 40 years of last century and situated in the ideal centre of Sofia. In this period they were projected by leading German and Austrian architects and by Bulgarian followers of this school. Houses reproduce elements of Central European baroque, (predominantly Viennese). Most of them need complete restoration and are wonderful investment opportunity for small luxurious hotels, clubs or individual residences with special atmosphere and charm.
     First impressions of prices of newest offers on Sofian real estate market show that rise continues. This is most valid for luxurious and new built homes, in which there is change in upper direction in last months. The reason is familiar, solvent demand, continues to exceed supply of really quality properties. Except that, people, who have access to financial resource, are already interested not only where the bought home is located /in which section of the capital/, but also what type is the building where it is situated: floors, performance of facade, quality of used materials even in common parts, and of course availability of security, parking and controlled access to it. Different prognoses were heard about the price development of property market in 2005 - most experts in the branch expect rise of prices from 24 to 50 %. Up to now these percentages are not achieved compared with December 2004, but tendency of increase remains.
     Ivan Vazov quarter goes back on top position among most expensive residential areas in Sofia. Last data show that Ivan Vazov, one of most prestigious quarter, is again with highest prices of homes in the city. On first place in November and December was another section of the capital -Iavorov quarter. This due to two reasons: entering on the market of three new constructed buildings with luxurious building performance, where price of square meter living floor space is over 1200 euro and some offers for sale of properties in older houses, but on high prices. At the moment one-roomed homes in Ivan Vazov hold the record price of 1389 euro, and average price of apartments offered for sale is 962 euro per square meter. Second place in this chart is for former number one Iavorov quarter, where average price reaches 834 euro, being the same in November 2004. The third place is for Lozenets - traditional leader among luxurious residential areas in Sofia, with 845 euro per square meter, followed very tightly by Iztok with 834 euro. Fifth quarter in this chart is on serious distance from first four, this is Belite Brezi with 681 euro per square meter.
     From ten years the sales of preferred residential areas in the capital remain unchanged. The only change is in their order each of four most expensive quarters has been first and fourth in this price chart. Prices are changing, but only in upper direction.
     Interest towards qualitative residential properties will never flag, like apartments in the centre near Doctor's garden (Doktorskata gradina), Batemberg street and Tsar-liberator boulevard (Tsar Osvoboditel). This also concerns prestigious places in neighbour Iztok where there is enough open space and building is not like in some parts of Lozenrts. James Boucher becomes street of top prices in Sofia. Nearness of park is always carrier of higher prices. It is not chance that Arsenalska street and Dimitar Hadzikotsev street will remain attractive. There are places where prices will never fall down and investment on these places is always good one.
     On the other pole, the cheapest quarters are Obelia -2 with 385 euro, followed by Luilin -5 with 401 euro and Nadezda 3- 418 euro. Experts state that in these sections movements of price and changes of their places in the chart are more often. On the whole in 2005 year the cheapest sections are Obelia 1 and 2, followed by Nadezda 2, 3, 4 and Liulin 5.
     The purpose of buying determines the residential area. There are three kinds of buyers on the capital property market according to purpose of buying. First group are people who acquire home for personal needs, because they live in lodgings or they come now in Sofia for longer period of time. The second one consists of people who invest in property because they want to use the situation established on the market and to protect their money against losing value. And third group of people who change their current home with other, smaller or bigger one, because of changed conditions, earnings or way of living. Third group is the biggest one and people investing in properties are the smallest group. The tendency towards 2007 shows gradual increase of possibilities for investment of money in properties and reduction of the group of newcomers wanting to have their own home, with the purpose not to live in lodgings. Most numerous will remain those who want to change their home no matter with bigger or smaller one.
     The investors in real estates do not at any cost look for the most expensive residential areas, in most cases they stake on buying real estates at cheaper prices, but with clearly expressed tendency for increase. This directs them to quarters like Geo Milev, Belite Brezi, Gotse Delchev which are much lower than most expensive, but they have the potential to increase their prices in the next years. In such way invested money will not only keep their value, but it will also increases.
     People looking for home satisfying their own needs choose one of two approaches according to their financial status: buy expensive homes in prestigious residential areas of the capital if they can afford them or the other option if they do not have enough money or look for small apartment, they buy property in quarters - bedrooms of the capital, where they will pay less money. Favourites for the rich people are quarters - Ivan Vazov and Lozenets and Mladost and Luilin for more financially restrained.
     To our customers looking to invest in residential property we would recommend purchasing studios, 1 or 2 bedroom apartments in the exact centre of Sofia which is the area around the Sheraton hotel, the Parliament, the Sofian University, the Doctor's Garden, the NDK (National Palace of Culture), around Vitosha Blvd. (main shopping street), the Graf Ignatiev Str. and around Patriarch Evtimii Blvd. and around near the Foreign Embassies, etc. These areas are suitable for attracting both Senior Executives working for the foreign businesses and organisations in our capital, as well as regular business and leisure travellers visiting the city. The main problem here is the shortage of parking space, but there are manyparking lots where customers can keep their cars against a monthly fee of 40-50 EURO. Gross monthly rental income for fully furnished and fitted apartments: 1 bed apartments: 300-500 EURO monthly for long term tenants and 600-800 EURO if run as a serviced apartment (short term rentals 1-15 days).
     It is also worth mentioning the better residential areas of the city, where owners may attract solvent tenants: Lozenets, Ivan Vazov, Strelbishte, Lagera, Iztok, Geo Milev, Pirogov and VMA, etc.
     Rental market in Sofia is a very delicate matter in terms of area and specifications of the property. To have successful venture in Sofia foreign buyers must have a reliable local partner, with excellent knowledge of the rental market in Sofia, like Bulgarian Property Ltd. We highly recommend purchasing an apartment in the ideal centre of the city which is in bad condition, as these apartments are lower priced, but much higher value for money. Our company has own building and furnishing team of professionals who will refurbish and furnish any apartment in Sofia for literally 2 months to get it to the needed standard for renting out. And because we deliver the materials and furniture only from wholesale traders and we use special discounts we are able to achieve very reasonable price for very high quality. For all buyers who would like to use and benefit from our rental services we will provide:

• FREE advertising to find a good tenant
• FREE property management for 1 year
• First tenant FREE of charge
• HIGH QUALITY REFURBISHMENT WORKS - with 2 year official guarantee by Bulgarian Property Ltd.
• HIGH QUALITY FURNITURE - with 2 year official guarantee by Bulgarian Property Ltd.
  
  ...and don't forget the constant capital growth of these properties at 15-20 % per year.

     For more details regarding real estate property for sale in Sofia which would be a best buy for renting, please contact us, as the matter is quite specific and professional assistance is more than necessary.