Residential Estate Market Overview

The market for residential real estate remains very dynamic. Residential estate prices in Sofia grew on average by 8.8% in 2018.

Single-family as well as multi-unit houses are recognized as a viable investment. One of the reasons is that the 8.8% growth in prices in 2018 was 3 times the inflation rate in Bulgaria. Furthermore, 20% of purchases at the moment are made for investment purposes, whereas, several years ago only 5% of buyers had investment intentions. Residential estate investments provide 4-5% yield rate on average. However, studio apartments can reach a 7.5% return. In 2018, the regulators issued 69% more residential construction permits than in 2017, or 14 761 permits in total.

41% of buyers in 2018 acquired two-bedroom apartments. The prices in December 2018 started from 700 €/sq.m. in the boroughs Lyulin and Svoboda and reached 1 400 €/sq.m. in the City Centre and the neighborhoods Ivan Vazov, Lozenets, and Iztok. Most new residential dwellings in the last two decades were built in the Southern parts of Sofia. The city government is currently developing a strategy for the development of the Northern boroughs.

Source: investsofia.com