Friday, April 28, 2017

The housing market in Sofia in Q1 of 2017 - Prices Increase by 18%

2017 started with an acceleration of the previous year’s dynamics, especially strong since the beginning of March. Price growth is now approaching 20% on an annual basis. This is a significant increase but it must be kept in mind that growth has accelerated since spring last year and we are currently comparing with the lower prices at the beginning of 2016’, commented the market trends Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES.

‘There is no doubt anymore that the market is in an upturn. The main challenge will now be to predict how long this growth will continue and where will be the breakpoint, which is the most difficult to forecast. Surely we can say that we are still at the beginning of the upward curve, with expectations that this trend will continue for at least 2 years. The economic factors contributing to the market upturn are very different from those of the previous booming cycle when foreign demand was the main driver. The market picture looks very good, there are no concerns and this time we can say we have a sustainable growth.’
‘The average property price in Sofia is now approaching 1000 Euro/sq.m. and has reached the levels from the end of 2007. It took 10 years for the market to regain the positions of the previous boom, but this time with much better economic indicators and the tendency for these levels to remain stable’, Stoykova adds.

Average Prices

The data of BULGARIAN PROPERTIES shows that in Q1 the average price of the sold apartments in Sofia is 985 Euro/sq.m. at 960 Euro/sq.m. in the last quarter of 2016. Thus, quarter-on-quarter basis, the price increase is 2.6% and 18% annually. The average purchase price of the dwellings is around 90,000 Euro.

In early 2016, homes in Sofia were sold at an average of 835 Euro/sq.m. 

At present, property prices in Sofia are at levels similar to those from the end of 2007. The peak values in the third quarter of 2008 have not yet been reached in the pre-crisis boom when the average house price in Sofia reached 1260 Euro/sq.m.

New Construction

The sales of new build homes continue to account for more than 50% of the total sales in Sofia and the interest remains high.

Both buildings in the initial stage of construction and already completed buildings are available for sale. Property prices are rising steadily as construction progresses, and the available homes are running out quickly, so off-plan purchases are very common.

Parameters of the purchased properties

The one-bedroom apartments have regained their attractiveness, which can be explained by their greater liquidity and easy rental, as well as by the rising prices which limit the budgets of the buyers. They account for about 55% of the purchased homes in the first quarter. Immediately after them with a share of 32% of the purchases come the two-bedroom apartments. Multi-family homes and maisonettes are about 10%.

The average area of the purchased apartments is 90 sq.m. Most often apartments on the 2nd to the 6th floor (70% of the sales) are bought. Discounts from the offer prices are minimal - up to 1%.

Friday, July 15, 2016

Българските имоти поскъпват по-бързо от тези в ЕС *

Данни сочат че има съществена разлика в поскъпването на старото и новото строителство
Цените на жилищата в България се повишават с умерено по-висок темп от отчитания среден ръст за целия Европейски съюз. Това показват данните на Евростат за първото тримесечие на 2016 г., сравнени със същия период на миналата година, пише Капитал Daily.

Според изчисленията жилищата у нас са с 4.5% по-скъпи в края на март, отколкото са били 12 месеца преди това. За сравнение средното за всички 28 страни-членки на ЕС поскъпване на жилищата е 4%. Малко по-високо – 4.5% е то за страните, които са част от еврозоната.

Данните сочат, че има значителна разлика в поскъпването на новите и на вече съществуващите домове. Цената на имотите в новопостроени жилищни сгради в страната се повишава с 5.8% на годишна база. Докато вече съществуващите такива жилища са с по-скромен ръст от 3.7% на годишна база.

От всички страни в ЕС само в Италия и Кипър се регистрира поевтиняване на жилищата в сравнение с година по-рано. За сметка на това в Унгария, Швеция и Австрия поскъпването на имотите е дори с повече от 10% на годишна база, докато повишението в България е съизмеримо с това в Германия (4.4%) и Чехия (4.5%).

Заключението на анализаторите обаче е, че въпреки ниските лихви, които улесняват финансирането на подобна покупка в България и съответно от поне една година водят до поскъпване на имотите, цените им все още остават под нивото от 2010 г. По този показател жилищата през 2010 г. са били с 2% по-скъпи, отколкото са били към края на март тази година, сочат данните на Евростат. България далеч не е единствена в този червен списък на бавно възстановяване на имотния пазар. Другите европейски държави, в които цените на апартаментите през 2010 г. са били по-високи, отколкото са сега, са също Испания, Хърватия, Италия, Кипър, Полша, Португалия, Румъния, Холандия и Словения. При всички останали 18 страни-членки цената им се е възстановила или дори значително е нараснала.
* Част от публикацията в  1KAM1.COM 

Sunday, May 22, 2016

Holiday Homes in Bulgaria in 2016 - market report

The residential market recovery and the overall return of the confidence towards the real estate market are now spilling to other market segments, including the segment of holiday homes. 

More local and foreign buyers are now seeking holiday homes in Bulgaria which was indicated by an increase in sales in the ski resorts during the winter season. This trend is now becoming visible in the beach resorts. 
“Bulgarian vacation property market is starting to attract quite diverse buyers - they literally come from around the world. Only for the first three months we have served clients from more than 15 nationalities. It is getting harder to identify a dominating nationality of buyers since the market is very dynamic and the buyers mix changes each month. Constant though is the available interest towards properties in Bulgaria. Our expectations are for a very strong summer season. There is a good supply of properties - both resales and high-quality new construction”, commented the market trends Polina Stoykova MRICS, Managing Director of BULGARIAN PROPERTIES. 

Read more:

Tuesday, April 26, 2016

Sofia - prices and sales of new build properties increase

"...A very strong start of the property market in 2016 – a considerable increase of the number of sales, strengthening of the upward price trend and a great interest towards new residential developments – this is how we can sum up the first quarter of 2016. 

“We have witnessed a very big interest towards new developments in Sofia. The buyers are becoming more and more confident when buying properties off-plan. We often witness a very high percentage of apartment sales even before the start of the construction” commented Polina Stoykova MRICS, Managing Director and Head of Research at BULGARIAN PROPERTIES. 

“Buyers seem to be a bit behind with the market trends, since a big share of their demand is for properties of up to 50,000 EUR, and the supply of such properties is very scarce, especially in the most desirable districts and in the new development complexes” added Stoykova. 

Average prices

Based on data of BULGARIAN PROPERTIES, the average price of apartments sold in Q1 of 2016 in Sofia was 835 EUR/sq.m. 

The 800 EUR/sq.m. average price barrier was first crossed in Q4 of 2015. The trend of increasing average property prices continued and even strengthened in Q1 of 2016 and the price levels remained well above 800 EUR/sq.m. 

The apartments in Sofia were selling on average for 815 EUR/sq.m. in Q4 of 2015 and for 770 EUR/sq.m. a year before. Respectively, the increase in property prices in Sofia for Q1 of 2016 compared to Q4 in 2015 is 2.5% and on an annual basis it is 8.4%. 

Since the beginning of the year, there has been a clear trend for an increased demand for apartments in new developments. For the past months, 50% of the completed transactions in Sofia are in new developments. Most of them are in buildings which are being constructed now, including ones that are in a very early stage of development. 

The data of BULGARIAN PROPERTIES also shows that the average price of apartments sold in new developments for Q1 of 2016 was 950 EUR/sq.m. – around 100 EUR/sq.m. higher than the average levels of the market. 

The average overall price of apartments sold over the first 3 months of the year was 79,800 EUR, and of apartments in new developments – 90,000 EUR. This illustrates the preferences of the buyers and their willingness to pay higher prices for apartments in new high-quality developments. 

Parameters of apartments sold

1 and 2-bedroom apartments have an equal share in the completed sales in Q1 in 2016 and together they represent around 85% of the whole market. The amount of sales of 3-bedroom apartments increases – they represented around 10% of the market. Most of them are in new developments at early stages that allowe the buyers to make different rearrangements and merge smaller apartments into bigger ones with spacious premises according to their particular needs. 

The average area of apartments sold in Q1 of 2016 is 90 sq.m. – bigger than in the last quarter of 2015 because of the greater share of apartments with 2 and 3 bedrooms. The most desired floors ware from 2nd to 5th, but there is also a demand for higher floors when the buildings offer beautiful views. " repoprts

Sunday, June 7, 2015

Как се промениха цените на жилищата в София през 2015

Изменение на цените на жилища в някои квартали на София през 2015 г.
кварталянуари 2015 *декември 2015изм. %
Белите брези8148565
Гео Милев8268755
Горна баня762769 -
Гоце Делчев8188635
Докторски паметник147215958
Западен парк65473512
Зона Б-187647873
Зона Б-197377684
Зона Б-57788083
Зона Б-5-3833812-3
Иван Вазов11191121 -
Красна поляна57364011
Красно село72781812
Кръстова вада8058748
Малинова долина5305707
Манастирски ливади7597873
Медицинска академия95010278
Модерно предградие5115426
Овча купел5906388
Света Троица6436927
Студентски град7217382
Сухата река6166515
Фондови жилища583581-1
Хаджи Димитър61467610
Източник: imot.b

Wednesday, January 28, 2015

Sofia prices rose by 3% in 2014 - analysis based on National Statistics data*

According to calculations by BULGARIAN PROPERTIES, based on the data from the National Statistics Institute about the apartments’ prices in the regional cities in Bulgaria, the property prices in the capital of Sofia registered nominal annual increase of +2.9% in 2014. For the country on average the nominal increase is +0.5%. After inflation deduction, the real* increase of property prices in Sofia for 2014 is +4.5%, and +2.1% for the country on average. 

The annual property prices in Bulgaria have marked an increase for the first time since the beginning of the crisis and this is fully in line with our forecasts and expectations throughout the whole of 2014 about the end of the downward trend and the beginning of a new stage of the market development. 

The property market in Sofia is developing more rapidly and is recovering faster than the markets in the other big cities, as the increase in property prices in the capital city accelerated during the last quarter of 2014. In Q4 in 2014 the average apartments’ prices in Sofia registered a real* annual increase (compared to Q4 of 2013) of +5%. Compared to the previous quarter, the registered increase in Sofia is +1.72%. 

The situation is similar in Plovdiv (the second biggest city) – the property prices there during the last quarter of 2014 registered a real* increase of +4.5%, and the real* increase on for the whole 2014 is +4.3%. The property prices in Burgas registered a real* annual increase of +3.4%, and in Varna the registered increase is +0.7%, which is smaller compared to the other big cities but the market there reacted more slowly to the positive trends and we expect them to be more visible in 2015. 

The information about Stara Zagora is interesting – there the property prices registered real annual increase of +4.26% which positions the city among the ones with biggest increases in property prices and puts them in one category with Sofia and Plovdiv. 

The average selling prices of the apartments in the big cities in Bulgaria in 2014, according to NSI data, are as follows:

• Sofia – 757 Euro/sq.m.
• Plovdiv – 487 Euro/sq.m.
• Varna – 704 Euro/sq.m.
• Bourgas – 581 Euro/sq.m.
• Stara Zagora – 457 Euro/sq.m.
• Veliko Тarnovo – 373 Euro/sq.m.
The article is published in BULGARIAN PROPERTIESAuthor: Polina Stoykova MRICS, Managing Director & Head of Research