17/03/2008

The great discrepancy between real estate analysts’ forecasts and the actual market development last year, along with brokers’ current attempts to create a feeling of relief by means of predicting a slow-down in residential property price growth, resulted in the emergence of a new influx of buyers. During the first months of 2008 demand for residential property is still high and prices continue their upward move. The offering of existing apartments has been reduced significantly, while the choice of new-builds is limited either to a studio in a building to be completed this year or the dream apartment to be completed in mid-2009.

The choice of land for development is also limited and the prices for plots are not stable and keep on rising, which will inevitably influence the price of the end product.

Currently, would-be buyers of homes in any of Sofia’s neighborhoods, have to choose between expensive prefab panel apartments and cheaper new-builds (per sq m prices), which, however, will be fit for use at least in a year. For example, three-room (two-bed) panel home in Sofia’s Mladost 4 neighborhood could be found in the range of EUR 800-1,200 per sq m. New-builds in the same area have been offered for EUR 880-1,000 per sq m. In the low end of EUR 880 a 100 per cent payment is expected on the contract signing as the high one of EUR 1,000 should be paid off in installments. However, both cases concern buildings, which are to be completed between September and November 2009.

Lyulin, another of the largest residential boroughs, is in a similar situation. Although there are still panel homes sold for as low as EUR 650 per sq m, the heaps of asking prices exceed EUR 1,000 per sq m. One of the highest levels for panel apartments in the area is EUR 1,210 per sq m (for an 85-sq m apartment). A new property with similar square surface in building with granted use permit is on offer for 1,250 euro per sq m and a home in a new building to be completed in the summer of 2009 costs EUR 700 per sq m.

Real estate buyers targeting central areas have a harder time. Supply in one of the preferred prime neighborhoods, Ivan Vazov, is quite limited. In this part of the capital residential prices reach EUR 3,000 per sq m, the price of a 100-sq m, two-bedroom apartment, located in a building, built less than 2 years ago. New-builds in the area have been offered in the range of EUR 1,000 to EUR 1,350 per sq m.


Source: Index Imoti