Sofia Property Market Update

Written by Dave Moore

Sofia Property Market Update    

 

So what effect have the latest round of European Financial Discussions had on the Sofia Property Market?

 

In truth, they’ve not had much effect at all. Prices in Sofia have in some areas stabilised (‘bottomed out’) but other areas are continuing to fall, albeit at a much slower rate than 2009.

 

Sofia Property Expert, Simon Tweddle of ‘Sim Property Group’ has recently commented ‘The property market in Sofia continues to be experiencing a hangover from the heady days of booming prices and rapid building. Unfortunately, since 2008, when the financial crisis struck, both financing and buyers dried up leaving developers with property they couldn’t finish or if they could then they couldn’t sell it. The current market is oversupplied with property and sales prices continue to fall. Many investors would struggle to sell at prices they paid in today’s frozen market. Until both the economy of Bulgaria picks up and wider availability of mortgage finance appears the market may be in a sorry state for some time to come.’

 

But it’s not all bad news, a few weeks ago, Balkan Legal & Finance delivered the great news to many about the availability once again of a mortgage product for foreigners, albeit on a limited number of developments with Draconian terms – but this looks like the first green shoots the market has experienced since the financial crisis struck. Full details of the product are available by viewing this article.

 

Furthermore, if you are looking for property in Sofia now, perhaps there has never been a better time to buy. Prices in some areas are at 2005 levels, with developers and some individual property owners keen to sell for prices around about construction cost or at least for much less than was paid for them originally. If you are a bargain hunter and looking for somewhere to invest right now, Sofia should be right near the top of your list. So if you are interested in reduced price property, please give me a call on +44 1142852958, +44 7738887555 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

So if it’s not good for property owners from a capital growth point of view, how is the rental market faring. Comments from Simon Tweddle indicate that this section of the market is not so rosy either; ‘Unfortunately, this oversupply of property has not just knocked sales prices but rental prices which have also dropped substantially. In central and western areas of Sofia rents remain stable, however, in the southern part of Sofia the huge oversupply means that its extremely difficult to rent out properties at reasonable prices. On the one hand these conditions are bad for current owners of property in Sofia, yet could be viewed by others as a unique buying opportunity.’

 

Fortunately though, the poorer yields in the rental section have prompted owners to look at reducing outgoings in order to balance the books. With so many management companies charging extortionate fees and charges and providing very little in return to the owners, apart from inevitable hassle and squabbles, well priced & efficient management companies are seeing a rise in demand for their services. ‘Sim Property Group’ have indicated such sentiments from their clients ‘Because of such conditions, and the practical issues associated with property in Bulgaria we are finding our hands-off property management service extremely popular.’

 

To find out more about this ‘hands-off’ property management service email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Over the next few weeks, I will be providing market updates for Bulgaria’s ski & beach resorts, but in the meantime, if you have any comments or questions about this article, please contact me on +44 1142852958, +44 7738887555 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

For related articles see;

Property investment - Lessons learned? Tips for the future?
Sunny Beach Property Market Update

Bansko Property Market Update

Sunny Beach & Bansko Rental Market Update