The increase in interest rates has not affected the desire of buyers to acquire a new home
Sofia, Bulgaria29 September 2023, 02:10 12412 read 6 comments
Reversal of the real estate market. Brokers are reporting two new trends. Brick houses and furnished apartments are in great demand. Brick homes are in the greatest demand, and their average price in Sofia reached 1,926 euros per square meter, according to data from a real estate company. Apart from the area in which they are located, housing prices also depend on the type of construction, reports Econ.bg.
In second place in terms of prices after brick houses are apartments in buildings built using the large-area formwork (EPK) technology. In Sofia, the average price of these apartments is close to 1,900 euros per square meter. The prices of the panels are around 1,534 euros per square meter.
These data include all completed transactions, not just new construction. Within a year, the growth of real estate prices in the capital in some neighborhoods is between 20 and over 30 percent, depending on the type of construction.
Brick homes are in the greatest demand. They represent 62% of the concluded deals. In second place are the panels. Apartments in buildings built using the large-area formwork technology have a significantly smaller share of transactions, and one of the reasons for this is the limited supply on the market. According to the type of property, two-room and three-room apartments are most in demand. 38 percent of the completed transactions are with two-room apartments, and 25 percent – with three-room apartments.
More and more buyers are choosing properties that are fully finished and even furnished, brokers say. This raises the average price per square meter of completed transactions. The plus for buyers is that they see the final price of the apartment.
If they buy a home that has yet to be finished, they have no way of knowing what the additional costs will be before they move into their new home. In addition, when buying a completely finished property, they do not waste time on repairs. Investors also prefer to sell completed homes because they get a higher price for them.
The upward trend in interest rates has not affected buyers’ desire to acquire a new home. But because of the increased cost of living, buyers are making more careful calculations about whether they have a high enough income to pay off a mortgage.
As a result, the real estate market is driven primarily by high-income earners. They are willing to pay a high price for a home that meets all their requirements. Therefore, there is a shortage of quality properties in a good location on the market.
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2023-09-29 08:52:03
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