The real estate market in Sofia continues to show growth, with a 10% increase in sales compared to the previous year. This was shared by Momchil Krastev, a broker at one of the leading real estate agencies in the capital, during an interview with Radio Sofia.

High Demand for Completed Properties

Krastev highlighted that:

• There is a growing demand for completed, move-in-ready properties, both in the new construction segment and on the secondary market.
• The supply of such properties is becoming increasingly scarce.
• Low mortgage interest rates, rising living standards, and higher average wages are driving market activity.

New Construction vs. Secondary Market

The broker noted that the number of actual construction starts is twice as low as the number of building permits issued annually, creating a supply shortage. Data from 2023 and early 2024 show around 30,000 transactions in Sofia, with new construction making up a relatively small portion of them.

Shift from Older to Newer Properties

Krastev observed that buyers are increasingly favoring newer properties, often striking deals above the average price levels.

Renting or Buying?

According to Krastev, the choice between buying and renting can be made by comparing the initial down payment and monthly mortgage installments to rental costs:

• Renting might be more advantageous in the short term, especially for those with a dynamic lifestyle.
• Buying is more cost-effective in the long term, as homeowners gradually pay off the property’s value instead of paying rent.

Land or Finished Property?

Krastev also compared two options:

• Investing in a plot of land in the outskirts of Sofia to build a house of around 100 sq.m.
• Purchasing a completed property in the city, such as a ground-floor apartment with a yard, at a comparable price.

Outlook for 2025

Looking ahead to 2025, Krastev mentioned that the upcoming adoption of the euro in Bulgaria may impact real estate prices./BNR