Construction and the Property Market with a Serious Jump in 2017
The real estate market continues to grow at a record pace in 2017, with the main reason being new construction. For the second quarter of the year, 207 building permits were issued for residential buildings in Sofia, an increase of 25% compared to the first quarter of the year and 10% compared to the same period in 2016. This is the data from an analysis made by IMOTICON with the partnership of SND Capital according to NSI data, National Register for New Construction, BNB and Registration Agency, reports iNews.
In the next few years, the real estate market is expected to go over 816,000 square feet of living space, and this is a statistic of residential complexes and buildings that have been authorized for construction over the past two years. The interest of the builders for investment continues to grow and the priority is finding a large enough plots with an attractive location to satisfy the growing needs of the market. The most desirable destination remains the center of the capital, but because of the overcrowding, the traffic and the lack of parking places, the focus and the investment intentions are shifting significantly to the southern districts of Sofia. The fastest growing quarter is Manastirski Livadi - east. By the end of 2019, nine new projects are expected to be put into operation in the region, and await the opening of a decommissioning site.
IMOTICKON data show that the demand for residential property continues to grow and the rise in prices does not frighten the trained and well-informed buyer as the market develops with good sustainability and economic performance. "Today's buyer wants new construction, but not one that was completed five years ago, and one that he can modify and finish according to his own requirements," says Dnyo Dobrev, Executive Director of the Joint Stock Company "CND Capital", which is part of IMOTIKON. Today, the buyer is extremely demanding and well-informed, and banks are actively involved in checking and gathering information about sites, he adds.
According to him, more than 90% of the sites currently under construction in Sofia are realized even before Act 16, while about 10% of the apartments remain unrealized in the case of Act 16. "Everyone expects to see a large percentage of buildings, but these buildings will be sold in advance," Dinyo Dobrev said.
This is the example of the last project of the company - ARCADIA Residential Complex. For the first month, 10% of the apartments have been booked since the launch of the sales campaign, and by the end of the year the construction site is expected to be opened. The complex, spread over 6,300 square meters, offers over 160 apartments in 22,700 square meters of built-up area. Children's center, park and beautiful views of Vitosha and Sofia are just some of the amenities offered by ARCADIA at the most competitive prices in the area. The plans of investors and builders is Manastirski Livadi - East to become an exemplary neighborhood, with well-arranged infrastructure, numerous amenities for the residents. The rising interest and fast-paced deals only indicate that this goal is fully achievable.
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