Real estate prices in some prestigious areas have gone up so much that buyers might start considering purchasing houses for the same amount in the outskirts of cities
It is not unusual for the most expensive residences to be located in Bulgarian city centers where the infrastructure, shops, services and short distances are. But when three- to five-bedroom apartment prices become higher than the prices of houses in prestigious suburbs this may be a sign that price levels may not be sustainable over time, at least not all Bulgarian properties whose vendors believed they were selling luxury homes.
A semi-detached house for sale in Sofia's Boyana neighborhood for example costs EUR 160,000 and will be completed next year. It comprises three bedrooms, parking for two cars and total built-up area of 154 sq m. For similar to the above mentioned price one could purchase three-bed room apartments in the wider central area and on central boulevards, but without parking space. A151 sq m apartment just behind Rodina hotel costs EUR 190,000. The property occupies the whole floor and has two cellars in addition.
More prestigious locations like the central Tsar Asen II St. command higher prices - 220,000 euro for a 140 sq m four-room (three-bedroom) apartment on the second floor of a building dating back to 1970. Prices for Bulgarian properties with similar locations do not fall below EUR 1,500 per sq m even though they may not be called prime. Such are the homes in old buildings or situated on the lower floors. Usually, such apartments are not renovated new development is almost non-existent. However, there are some exceptions like a penthouse on Cherkovna St. in a building from 2005. The 137 sq m apartment features a built-in kitchen but only two bedrooms and is priced at EUR 235,000.
Two other houses are for sale for EUR 170,000 and EUR 200,000 respectively in Boyana neighborhood. Each includes 4 bedrooms and yards of respectively 100 and 200 sq m. One of the properties is overlooking the Vitosha Mountains and the film center in Boyana and the other one - nearby Dragalevtsi neighborhood and Sofia.
One would find detached houses built in the last 10 years in the neighbor hoods at the foot of Vitosha Mountain ranging between EUR 250,000 and EUR 350,000. These houses boast large spaces and garages. A 450 sq m one under construction in Simeonovo plus a yard of 625 sq m costs EUR 270,000.
To compare, an 80 sq m two-room (one-bed) apartment in one of the few new developments in the center, located close to Slaveykov Sq., costs EUR 240,000.
Nevertheless, top central locations still hold high prices and enjoy very strong interest. In the area of the National Assembly properties sell within days as buyers don't even discuss prices, agents say. Prices are EUR 2,500 -3,000 per sq m on average and values in the area of nearby Doctors' Garden are even higher.
Prices of EUR 3,000 per sq m have been seen also in Iztok neighborhood, where gated residential communities with well-kept environment and additional sen/ices have been and continue to be developed. Prices in Varna are not much different, although the highest values in the sea capital are lower than Sofia's. A 145 sq m two bedroom penthouse next to the Cathedral costs 140,000 euro and another one of 172 sq m -175,000 euro. The record price in Varna is 3,050 euro per sq m for a 164 sq m third-floor apartment with built-in furniture. The unit is located behind the Lenin summer cinema. Spacious residential units in prestigious areas cost on average between EUR 200,000 and EUR 350,000.
In Varna, one could also find suburban houses for EUR 1,000 per sq m. In the region of Galata a 150 sq m house, which boasts a sea view and 380 sq m yard, has been offered for sale with asking price EUR 145,000.
Source: Index Imoti Magazine
