Garages are replacing homes

Over the past 30 years or more, the real estate market has been on the rise, with the exception of the 2008 crisis. For this reason, there have always been buyers on the market who acquire property for resale. Before the aforementioned year, it was common practice to buy a home in January and sell it for nearly 40% more in December. This was one of the surest profits.

In 2013, the real estate market, especially housing, stabilized and prices began to rise again. Of course, the increase in price within a year was no more than 10%-15% and such an “exercise“ and the number of re-buyers decreased significantly.

The crisis caused by the coronavirus followed, introducing new trends in the real estate market, namely living outside the big city. This necessitated the purchase of a car. Quite a few households ended up with two cars. In 2023-2024, the trend of returning to the city began to be observed. However, the question arose - where will we leave them in the big city?

A growth in demand for garages and parking spaces has begun. Over the past 2 years, prices have increased significantly against the backdrop of the increasing deficit. This led to the current situation, where in Sofia, a city of millions (editor's note: by 2026 the population is estimated at 1,285,000 people) only 550 garages and parking spaces are offered for sale, according to data from the largest real estate website imot.bg. Of these, only 50 are in the city center. Parking spaces are offered for between 35,000 and 60,000 EUR, depending on the location, and garages can reach up to 100,000 EUR. For example, a garage at the intersection of “Rakovski“ and “Dondukov“ streets can be purchased for 96,000 EUR.

In overcrowded neighborhoods, such as Malinova Dolina, garage prices are close to those in the center of the capital. An underground garage in a residential building with Act 16 of 20 sq m can be purchased for 41,000 EUR. This type of property in Mladost also remains expensive. Parking spaces in the area of the 4th microdistrict with an area of about 18 sq m are offered for 45,000 EUR.

Based on these sales prices and the high rents, which vary between 200 EUR and 300 EUR per month, calculations indicate that the return can be achieved for a period of between 5 and 7 years. For housing, the term is significantly longer - up to 25 years, analysts say.

Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg