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Invest in Real Estate in Sofia, Bulgaria in 2023

Why Invest in Property in Sofia in 2023

Why Invest in Property in Sofia, Bulgaria in 2023

Bulgaria recorded the highest annual growth in housing prices among EU countries in Southeast Europe (SEE) in the third quarter of 2022, of over 15%, followed by Slovenia. This article looks at why it is a good idea to invest in property in Sofia, Bulgaria in 2023.

Demand for Properties in Sofia in 2023

It is expected that the demand for property will slow down in 2023. The reduced demand is being caused by higher interest rates to bring down inflation and tighter restrictions on granting new mortgages to reduce the risk of default.

Whether this will cause a reduction in property prices is unclear, as inflation is expected to fall in 2023 but there certainly been a stagnation in house price rises.

People may choose to stay where they are or continue to rent in 2023 while they wait and see what happens. This has led to a 10% increase in the number of tenants as many people wait to commence their purchase.

The Bulgarian real estate market is still developing, and unlikely other EU capitals from the former Soviet Bloc, prices are still affordable and haven’t reached their peak.

Sofia is popular for both local professionals and international staff, particularly to support the large number of IT companies in the city. Sofia is now well served by low cost airlines, such as RyanAir and WizzAir, and is very popular for a short get away which has caused a large demand for very short term let, making Sofia worth considering as a property investment option.

Enquiries for the purchase of apartments in Sofia have risen by 15%, but despite this, transactions are still down by 10-12%.

These characteristics could be a good signal to invest I property in Sofia in 2023 as there will be greater availability in the real estate market place in Sofia.

New Construction Plans in Sofia

Rising construction output and labour costs are pushing prices up. The most expensive properties are currently found in the Doctor’s Garden, Izgrev and Yavorov districts, but it is not realistic to find anywhere in Sofia to find new builds below 1,000 Euros m2, even if construction has not commenced on a new development.

Currently there are still a lot of plans for the larger investors to build for the next 3 years but at the same time rising construction output and labour costs are pushing prices up.

Macroeconomic Outlook for Bulgaria

2023 is expected to be difficult for Bulgaria from an economic point of view, but the positive outlook for 2024 is encouraging.

Bulgaria’s economic growth will be negatively affected by several factors:

  • Higher prices (driven by energy and food)
  • Slowdown in exports due to lower demand for goods from other countries
  • High inflation in 2023

Inflation will slow gradually in 2023 and GDP growth is projected to accelerate from 1.1% in 2023 to 2.4% in 2024. But still down from 3.1% in 2022. Energy price inflation is expected to slow and turn negative in the second half of 2023 and then remain negative in 2024.

The labour market will remain tight, in 2023 with a shortage of workers in many areas. In 2022, many employers matched inflation with page rises due to the strength of the manufacturing and IT sectors.

What is Expected in the Real Estate Market in Sofia In 2023

By the end of 2022, as in most European countries, property prices in Sofia had stagnated have stopped growing but the demand for new developments was still present.

During the last 20% the increase in property prices has kept in line with the increase in income so the large  recent increase in real estate prices in Sofia are not out of step with affordability.

The Sofia commercial property market in 2023 will be constant with the main buyers being local investors with sufficient funds or being able to obtain favourable credit terms.

Should I Invest in Sofia City centre a District?

If you are looking to purchase in Sofia solely for investment it is better to buy towards the centre of the capital. The highest rental prices are found for properties in the southern and southwestern parts of the city.

Most of the rental properties in the true centre of Sofia are renovated older properties which is great for socialising without having to worry about getting home but these properties are in buildings with no parking and unappealing common areas. Older apartments in the centre of Sofia may turn out to be better investments because they are cheaper and will be very easy to rent.

Many people prefer to rent just outside the centre in areas such as Doctor’s Garden, which has old but updated apartments, renovated parks and restaurants. Things to watch out for is apartments with no lifts or parking and lots of traffic in the streets.

The suburbs at the foot of Vitosha mountain such as Simeonovo, Boyana, or Dragalevtsi are popular among the better off professionals with children and are good for a luxury long-term luxury rent but it can take a little while to find the right tenants. The air quality is much better at the foot of Vitosha mountain and are popular with people who are looking for a healthier lifestyle.

A few kilometers from the centre you will find districts such as Lozenets, Iztok, Manastirski Livadi and Vitosha which offer a good combination of modern, secure buildings close to public transport, office buildings, parks and international schools.

Purchase prices are much lower in the northern, underdeveloped, parts of the city close to the Central Station, where many buildings need renovation but offer an excellent opportunity for investment.

Why Invest in Property in Sofia in 2023

If you would like to discuss the best real estate option is Sofia in 2023 then please contact us by contact form, chat or telephone and we will be provide you with  comprehensive answers to your questions. 

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LUXURY PROPERTY FOR SALE IN SIMEONOVO SOFIA

Bistritsa, Boyana, Dragalevtsi, and Simeonovo used to be villages at the foot of Vitosha Mountain which turned into suburbs due to Sofia’s growth. All four areas have preserved the slower pace of life and you will enjoy a very experience to living in the Centre of Sofia, you will see houses with beautiful gardens as opposed to blocks of apartments. This article examines the benefits of investing in property for sale Simeonovo Sofia.

Where Dragalevtsi and Simeonovo slightly differ is that they both have a lift to the top of Vitosha Mounatin (a cabin lift in Simeonovo and a chair lift in Dragalevtsi).

Simeonovo is one of the most prestigious districtsin Sofia. It is situated above, to the south, the Sofia Ring Road.

Travelling to Simeonovo Sofia

The main road from the centre of Sofia to Simeonovo is Simeonovoshusse. Simeonovoshusse ends at the Sofia Ring Road where the Simeonovo district begins.

There are frequent buses which connect Simeonovo to the Sofia city centre, you can find details of the bus routes at this useful website.

If you wish to drive to the city centre it would usually take no more than 30 minutes. From the Sofia Ring Road it is easy to travel to the other areas of Sofia such as Boyana, Mladost and Sofia Airport.

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IF YOU WANT LUXURY NEAR SOFIA CENTRE - LOZENETS IS THE PLACE TO BE

Lozenets is definitely one of the best districts to live in Sofia. Lozenets is known as a high-end, very desirable residential district with number of modern luxury residential developments interspersed with traditional Bulgarian homes.

To the south, the district heads to the slopes of Vitosha Mountain via Cerni Vrah Blvd, and to the west to one of the biggest and nicest Sofia parks – South Park.

The whole of Lozenets is packed with top quality shops, bars and restaurants, so you will never be short of entertainment.

In the past quarter was named “Korubaglar” (which means “vineyards in the woods”) because the quarter was at end of the town. Nowadays Lozenetz is amongst the most in demand and preferred districts and is still undergoing a lot of development of Sofia.

Lozenets can be split into two parts – Lower and Upper Lozenets. This can be slightly confusing as Lower Lozenets is to the north. You can easily reach the centre of Sofia by foot in 30 minutes while you will need to use the excellent public transport service or very cheap taxis to go to the centre from Upper Lozenets.

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LUXURY PROPERTY FOR SALE IN IZTOK SOFIA

Iztok District is located just to the east of Sofia city centre. Iztok is Bulgarian for East and, originally, Iztok was the most eastern part of Sofia. Now the capital has far extended to the east and includes districts such as Mladost and Druzhba. Because of its proximity to the centre of Sofia, and the high quality of the property for sale Iztok Sofia is one the most elite and expensive quarters in the capital of Bulgaria.

Iztok is probably a little to far to walk to Sofia city centre for most people, but it an ideal cycle ride as it is relatively flat, unlike most districts outside of the centre of Sofia.

Borisova Garden Iztok Sofia

Borisova Garden is known as “Sofia’s lungs” because of the huge green area it occupies in the very heart of the capital. It is a monument of garden and park art of national importance.

Over the years, Borisova Garden has become a favorite place for walks and entertainment for several generations of Sofia residents and has earned the reputation of the most beautiful and preferred park in Sofia.

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BUY A PROPERTY IN ONE OF THE MOST EXCLUSIVE PARTS OF SOFIA

Dragalevtsi is definitely one of the best districts to live in Sofia, and property for Sale definitely comes with a premium price compared to the rest of Bulgaria, but compared to the cost of property in the rest of the European Union, it is an absolute bargain.

Dragalevtsi is part of Vitosha municipality and situated in the southwestern part of the city, in the foothills of Vitosha mountain.

Dragalevtsi now is an affluent district built up with luxury properties, as well as the old-style village houses that have not yet been re-developed into luxury modern properies in Dragalevtsi.

Location of Dragalevtsi Sofia

Dragalevtsi is located 7km from Sofia city center on the slopes of Vitosha Mountain.

Dragalevtsi has spectacular panoramic views and the excellent transport system which makes it an extremely attractive for location to live in. Indeed, Dragalevtsi is the preferred area in Sofia for many business people of high social status.

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INVEST IN PROPERTY IN BOYANA SOFIA

Boyana is an upmarket district of Sofia, the capital city of Bulgaria. Many businessmen and foreigners have invested in property in Boyana due to its quietness and high standard of living. If you choose to invest in property for sale Boyana Sofia you will be living in the same neighbourhood as the President, Prime Minister and the Speaker of the National Assembly.

Boyana is located 7km from the centre of Sofia in the foothills of Vitosha Mountain, which was declared the Balkan Peninsula’s first National Park.

Features of Living in Boyana

Boyana offers lots of greenery and peaceful ambiance that contributes to the healthy lifestyle of its residents:

  • Wonderful views Vitosha Mountain
  • Fresh summer and winter than the rest of Sofia
  • Fresh, clean mountain air
  • Good communication with the city center and the test of Sofia using Boulevard Bulgaria and the Sofia Ring Road
  • Gasification
  • Famous landmarks, such as
  • Boyana Church, The National History Museum, Boyana Residence, Boyana Fort and the Living Water Spring
  • Excellent shopping and places to eat and drink
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LIVE IN BISTRITSA - THE MOST FASHIONABLE PLACE IN SOFIA

Bistritsa is the least well-known of the 4 villages, (Bistritsa , Boyana, Dragalevtsi, and Simeonovo) which lay at the foothills of the magnificent Vitosha Mountain to the south of Sofia. Property For Sale Bistritsa is fast becoming the most sought after in Sofia

Bistritsa is a large village in the Sofia municipality, located in a small valley just 15 km to the south of the capital Sofia.

Crystal-clear streams (the name Bistritsa origin from Bulgarian “бистър” that means “clear, lucid, limpid”) flow through its teritory, and there are mineral hot-springs close to the village.

Travel to Bistritsa

The quickest way to travel  to Bistritsa is to use the Ring Road from the Darvenitsa junction to travel up the mountain.

If you wish to travel into the centre of Sofia by public transport, the best way is to take the bus to Mladost Business Park, where you can take the Sofia Metro all the way into the centre of Sofia.

You can also change trains on the Sofia Metro to quickly get to Sofia Airport.

Also, all four villages are connected by a mountain road, which provides for spectacular views of Vitosha Mountain and the whole of Sofia. The road runs from Boyana in the west to Lake Pancherevo (more on the lake below) to the east of Sofia.

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LUXURY PROPERTY FOR SALE IN VITOSHA, SOFIA

Vitosha District is located towards the south of Sofia, between Lozenets District and Sofia Ring Road. At this moment there is a lot of construction of property for sale Vitosha District.

The weather is a little cooler and fresher than central Sofia, but the winters are not so harsh as you will find in Boyana, Dragalevtsi, and Simeonovo – this is one of the reasons that Vitosha district is becoming one of the best places to invest in real estate in Sofia.

Transport Communications and Shopping in Vitosha District

One of the major advantages of buying a property in Vitosha District are the excellent transport communications between Sofia city centre, the ring road and other areas of Sofia.

A major reason for the spectacular growth in the real estate market in Vitosha District was the opening of the Vitosha Metro station.

The bus connections are also excellent in Vitosha Distict, and will enable you to connect with many of the areas not yet covered by the Sofia Metro.

There is also a tram service from the northern part of Vitosha District which runs down Cerni Vrah Blvd into the centre of Sofia.

Talking of shopping, there is, arguably, the most up-market mall in Sofia located right in the centre of Vitosha District. Paradise Centre has an excellent selection of shops, supermarkets, restaurants as well as a cinema complex.