The real estate market in Sofia, Bulgaria is reaching balance

Price growth is minimal, vendor activity is booming, according to consulting companies.
Housing prices in Sofia are already reaching their equilibrium and new strong growth is not expected. This is stated by the real estate agencies in their analyzes for the first quarter.
At the same time, the companies report an increasing growth of the properties for sale. More and more sellers are deciding to put property on the market to get out of an investment made at some earlier stage.

Overall, the purchase of a property directly from an investor remains a major factor in the market, the companies state. The interest is directed to new buildings in areas with built-in infrastructure and good transport communication.
With almost no change are the price levels in both the capital and the country. The fluctuations are within 0.5% -1%, which can not be defined as an indicative trend towards market equilibrium.

Offering is increasing
With about 12% has increased the volume of sellers in the first quarter of the year compared to the same period in 2016, according to data from experts.
Sellers are deliberately considering the market conditions. Those who want to make a deal today know that the market, besides active buyers, also offers them good financial conditions - easier lending, low interest rates on loans and deposits.
Experts underline that the current conditions are favorable for sale - a state that can not be constant. In the US, interest rates are already rising, and it is likely to be felt soon in Bulgaria.
According to agencies data, more than 25% of sellers are aiming to get out of a pre-investments. Their share is significantly lower in 2016 when most single sellers delayed the sale in anticipation of higher prices and pressed by the significant competition of new construction.

Prices rise, but not quite…
According to the consultants, the price levels have now reached their maximum, which is largely motivated by the investment-oriented sellers.
For several years, we witnessed steady price increases, albeit with varying intensities. Today, they reach stable levels and a new rise is not expected soon.
This is a time when many vendors rightfully decide to make a deal, especially if they have a free property or one bought for an investment at a certain stage in the past.