This blog focuses on Sofia and how we believe it is time to look to invest in the capital as a viable alternative to the beach or ski resorts
Sofia as the capital of Bulgaria has a population of 1.3m people and is growing.
It is historically proven that capital cities of new EU entrants experience rapid property price increase following EU entry. You only have to look at Riga; Vilnius and Warsaw as some of the most recent examples.
Sofia prices are currently low - around 1000 Euro/ sq meter for good quality finished new apartments close to city centre. This is not a situation that will continue for much longer. We predict prices closer to 1250 Euro per sq meter by year end.
We also see the emergence of high quality International developments in the city. Our most recent example of this would be the Mount View complex. This is a high quality complex with pools; concierge service and fitness centre and all within 15 min of city centre. Sure the prices are close to 1500 Euro/sq meter but the development is at the top end of the scale and is ideal for the high quality development in demand from the ex-pat community.
Look shortly for additional developments like Mount VIew but for now check it out on the ''city'' section on our website.
Rental income is also on the up in Sofia. Of course, it does need to continue to show growth but, the signs of life are starting to appear.
Our advice for Sofia would be to buy the highest quality apartment in the best complex your money can afford. High quality always rents and always sells. Look also to facilities on site as this is becoming more important for people renting.
Sofia will take a couple of years to become a purchasing hot spot like Warsaw. It needs a good rental market and lower mortgage rates but, for those willing to invest now, you will see substantial gains over the next two years.