The home appreciation we've seen in recent years won't last forever, and we will witness market segmentation. The main reason for it is the increase in the demands of buyers. More and more customers are paying attention not only to what materials the property was built with, but also to the degree of urbanization of the area in which the residential building is located.
„I advise people who buy homes to pay attention to the organization - is there enough space, is there parking or not. All of these things are important. There are already large parts of Sofia with new urbanization that is dramatic - narrow streets with new buildings. The prices of these properties will not stay high for long. When better urbanized areas appear, people with opportunities will move there, and the quality of life in these modern poorly urbanized ghettos will go down”, predicts banker Levon Hampartzumyan.
Narrow streets and many new residential buildings can be seen in the southern parts of Sofia. These are the neighborhoods of Manastirski Livadi, Krastova Vada and Vitosha. There, prices per square meter of living space have grown by more than 20% since the beginning of the current year, according to the data of the largest real estate site imot.bg.
The price increase is strongest in Krastova vada – 27%. If at the beginning of the current year it was possible to conclude deals at levels slightly above EUR 1,600, then by the beginning of October the value already exceeds EUR 2,000.
In the Vitosha district, the price has jumped by 22% - from 1350 to nearly 1650 EUR/sq.m.
In Manastirski livadi, the pace of price appreciation is the smallest of the neighborhoods in question, located before the southern part of the ring road – 19%. Deals are concluded at levels around 1,800 EUR/sq.m., while in January the price was just over 1,500 EUR/sq.m.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE