The real estate market in Sofia remains robust as the year draws to a close, with a notable increase in sales, up by around 10% from the previous year, according to Momchil Krastev, a broker at one of the leading agencies in the capital, in an interview with Radio Sofia.

There is a growing demand for ready-to-move-in homes, both in new construction projects and on the secondary market. Krastev pointed out that the availability of such properties is becoming limited. Factors such as low mortgage interest rates, improved living standards, and rising average wages are contributing to the active market conditions.

Krastev also noted that, although building permits are issued annually in large numbers, only about half of those projects are actually being developed. This creates a gap in supply. In 2023 and early 2024, Sofia saw around 30,000 real estate transactions, with newly built properties accounting for a smaller portion of these deals.

Buyers are increasingly leaning toward new properties, with many of these transactions going above the average price range. The broker highlighted that, compared to renting, purchasing real estate tends to be more financially advantageous in the long run, as buyers build equity through their mortgage payments, rather than paying rent. In the short term, however, renting can be a more viable option, especially for individuals with dynamic life situations.

When it comes to investment choices, Krastev also compared purchasing a plot of land on the outskirts of Sofia to buying a ready-made property, such as a ground-floor apartment with a yard. Both options, priced similarly, offer different advantages depending on the buyer’s preferences.

Looking ahead to 2025, Krastev indicated that the upcoming introduction of the euro could have an impact on real estate prices in Sofia, making it a key factor to watch for market trends.

Sources:

• Bulgarian National Radio (BNR)
• econ.bg