- Two out of three sales in Sofia are without a discount, according to data from Unique Estates (member of BIA)
- The luxury real estate company noted increased demand and deals with penthouses in 2021.
Active 2021 and continuing growth of prices are the trends that mark the luxury real estate market in Sofia. About 15% is the rise in the high segment of housing compared to the previous 2020. This is stated in the analysis of the luxury real estate company Unique Estates.
"Demand is active both in real estate construction in the rapidly developing southern regions and in high-class housing in old but well-maintained buildings in the central part of the city. Most of our clients who are looking for more space are buying houses on the outskirts of Sofia. There are other types of buyers - as an alternative to the house they choose a penthouse in newly built buildings," said Vessela Ilieva, CEO of Unique Estates.
Supply and demand
In addition to the number of transactions, the company also reports a significant increase in inquiries - a sign that a larger percentage of customers have decided to buy in 2021. Increased demand for luxury real estate corresponds to favorable conditions in the housing market as a whole over the past year, dictated by low interest rates, rising inflation and good savings opportunities. Increased interest in buying in conditions of relatively limited supply gives consultants reason to define the situation in 2021 as a classic "seller's market".
According to Svetoslava Georgieva, Chief Operating Officer of Unique Estates, the imbalance in the market is partially compensated by the new housing projects, while the owners of existing high-end properties are less likely to enter the market.
The year of the penthouse
In 2021, there is a growing interest in penthouses, according to company data. Such properties often border or even exceed the budget for the purchase of a house, and their prices often exceed 1 million euros. The requirement of buyers is for at least three bedrooms, but the demand often comes from families looking for four or more such premises. Another criterion is the availability of at least three parking spaces. The requirements for the height of the ceilings are for a minimum of 3 meters. The living room should be at least 70 square meters, and the internal layout should include a closet and a bathroom to two of the bedrooms.
"Clients decide on penthouses because of factors such as the protected environment, indoor parking lots, the community of neighbors, easier maintenance and practicality," said Svetoslava Georgieva.
Price dynamics
According to Unique Estates, the average price of a luxury apartment in Sofia has reached just over 2,000 euros per square meter, compared to about 1,700 euros per square year a year earlier.
Reduce sales of luxury properties at a discount. If in 2019 and 2020 in three of the four deals there was a reduction in the offer price, then last year this happened in only 30% of the deals. More than half of the discounts were within 5% of the levels requested by sellers.
