Luxury real estate market in Bulgaria also stepped up

Brokers reported double demand growth and strong increase in transactions for investment.
Double demand growth, increased transactions, especially for investment and activation of the rental market - so it seems the market of luxury properties in Bulgaria in 2016, according to the analysis of the consulting companies.
Expectations for this year are growth rates in prices and transactions to continue and flowing rates of deals for properties under construction - a trend typical for the housing market as a whole.
People saw that the market for residential properties is active, and the confidence returned. At the same time, they want to put their money into something safe and it is the leading reason for many of the purchases in the luxury department.
The policy of the banks to lower interest rates also attracted a lot of cash buyers on the market. They have inflated criteria for the properties, but many of them do not have a realistic idea of the prices and the range in which they negotiate and do not find what they are looking for. This, coupled with the limited supply of high-class properties, results in weaker growth in the realized transactions compared to the demand.
The agencies report a doubling of inquiries from customers and 60% increase in inspections in 2016 compared to 2015.
Transactions increased by 10%, the share of transactions for investment purposes reached 30% last year to 10 percent in 2015, reported another company.
Last year the growth of prices of luxury properties reached 7-8 %. The main engine of the appreciation of the properties of class is the new construction.
Rising prices reflect the imbalance between the growing demand for quality housing and the low supply of such. In nice buildings in upscale neighborhoods like "Lozenets" and "Iztok", prices are starting from 1200-1300 Euros and reached 1,500 Euros per sq m, reported the agencies.
Specialists say that the growth in transactions and in the highest segment of the market is more than 1 mln. Euros. The most expensive deal for a house is for a property at the foot of Vitosha- 3 mln. Euros, followed by the residence on the southern Black sea coast for 1.95 mln. Euros. While such sales are rare and one of a time, their presence suggests that affluent buyers returned to the market and are ready to invest, according to the brokers.
If last year's price gains are moving because of new construction, this year is expected the increase to be felt mostly in the old housings because of the limited supply. The market for new construction emerged as challenging, due to the planned commencement of large volume projects in the long term and it would lead to keeping prices up.

Favourite areas
Overall in 2016 came back interest in the central streets of Sofia. The pedestrian part of the boulevard "Vitosha" and around is again a preferred area to live and attracts property investors, according to the brokers.
Another sought after area is the one around Doktorski pametnik, which is traditionally preferred by buyers and the central part of Sofia quarters as "Iztok" and "Lozenets".
In addition, popular among buyers become regions with emerging infrastructure such as the areas around Paradise Center and the new subway station.