The student population in Sofia keeps on growing, particularly with international students, so there is a continual demand for student accommodation to rent in Sofia, especially in areas where there is a large student population. These high occupancy levels translate into an Student Accommodation Investment Sofia that will produce a high yield and good re-sale values.
One very popular area in Sofia is known as Studentsi Grad which is the student campus area for most universities in Sofia but there are also excellent universities in the centre such as the University of Sofia and the medical university.
The outlook for Sofia student property market remains positive and there is a strong demand from buyers inside and outside of Bulgaria so student property will remain a robust and profitable asset.
The typical net income ranges between 5 and 6% after full management and other associated costs have been deducted. It is important to employ an experienced management company to handle the day-to-day maintenance, and activities such as finding new tenants and marketing the properties. This will lift a large weight off the investor’s shoulders, and means it is perfect for the individual who cannot dedicate a lot of time to the investment, or for those who are living overseas and cannot be physically present to undertake daily maintenance tasks.
Questions to ask when making Student Accommodation Investment in Sofia
When considering Student Accommodation Investment Sofia, you need to ask questions such as:
- Are the students from Bulgaria or from overseas?
- Are there many existing developments suitable for students in the area?
- What are their facilities and rental costs?
- What type of property are you looking to invest in?
Once you have decided on the location and you have sorted out your budget, you can speak to an agent at Sofia Property Broker. One of our investment consultants can help you on your investment journey by discussing the latest student accommodation investments that fit within your budget and location preferences.
The Different Types of Student Accommodation
There are basically two different types of student accommodation to invest in
- Shared House: This type of accommodation is a shared student house with a communal kitchen, living area and bathroom. Often, they have small bedrooms and living areas.
- Small apartments or studios: Where the student will have their own privacy and facilities.
Advantages of investing in student property
- With Student Accommodation you will find the yield percentage to be higher and typically for a longer period.
- Strong Demand: You will find that in Sofia there is a critical shortage of student accommodation. Even if one tenant decides to move out, there are many more looking to move in.
- Good Locations: The developments are usually built in prime locations close to a university.
- Option to invest off-plan – If you invest in off-plan student property, you can benefit from below-market rates and possibly capital appreciation over the build period.
Disadvantages of investing in student property
- You may not see the same increase in property value year on year as you would with a typical buy-to-let property.
- When you come to exit and want to sell on the property, you will only be able to sell to an investor and not someone looking for a home.
- Higher maintenance costs – As the properties tend to be lower quality and will receive a lot of wear and tear, they are generally more expensive to maintain and issues tend to arise more frequently.
