One of the most visible trends in the real estate market since the beginning of the pandemic continues to accelerate. In 2021, we report record interest in single-family houses in the southern districts of the capital above the surrounding area - Boyana, Dragalevtsi, Simeonovo and v.z. Malinova Dolina. At the same time, the supply of this type of property is at its lowest levels for years, and currently there are mainly offers for the purchase of houses on the green, which do not stay on the market for long. All indications are that the trend will continue, and quality built single-family homes in prestigious neighborhoods will become more and more expensive and in demand.
Working from home and the lockdowns also had a positive effect for quite a few Bulgarians, who were able to ensure a higher standard of living without affecting the household budget. The solution was to move to smaller settlements in homes with more space, where children can play and study remotely without disrupting the work process of parents. This led to a permanent decline in long-term rents in major cities and a substantial increase in house transactions around them. In 2021, however, we see a gradual recovery in rental levels as companies begin to bring their employees back to the office. In recent months, traffic in big cities has increased, parking spaces are decreasing, and we are seeing less and less people who continue to work from home permanently.
However, the gradual normalization of the situation makes it difficult to preserve the comfort achieved - children return to kindergartens and schools, their parents to offices, and the temporary spacious home remains far from these places. This is also the main reason for the record number of inquiries in the agencies and the online space for houses in the neighborhoods of Sofia, which offer quick access to the city center and whose infrastructure is adapted to exactly this type of property. The most prestigious among them are Boyana, Dragalevtsi, Simeonovo and v.z. Malinova Dolina. According to data from the largest Bulgarian property portal, searches for houses in these four neighborhoods have tripled in the last 20 months.
The supply of single-family houses at the foot of Vitosha is at record low levels. According to the data of Homeheed, the number of active ads for selling houses in Boyana and Dragalevtsi varies between 220 and 330 from 2018 to the second quarter of 2020, after which a faster decline begins. In the last months of 2021 offers are now under 150 and counting. The situation is similar in Simeonovo and v.z. Malinova Dolina, as in both neighborhoods the largest supply was in October 2019, and the least - exactly two years later.
In conditions of limited supply and record demand, it is normal for house prices to rise. In Dragalevtsi and Simeonovo, prices per square meter reached 1600 EUR at the end of this year, which is an increase of 10% compared to the beginning of 2020. In Boyana, the percentage increase is smaller, but the average prices are also the highest - 1620 EUR/m2 . Villa area Malinova Dolina, which borders Simeonovo, is less known on the market and prices in the area are still lower than in the more famous neighborhoods beyond the ring road, but the supply there is also limited.
Most offers for single-family homes are in gated communities that are under construction. Significant inflation in building materials prices in recent months could have a negative impact on larger projects, where a significant proportion of houses were sold green before the price hike. That's why experts advise buyers to focus on smaller complexes that are just starting to be built and sold - with them, investors have taken inflation into account in their calculations and, accordingly, the risk of subsequent price renegotiation, delay or default is significantly lower .
/The cypress mansion with 4 individual single-family houses in v.z. Malinova Dolina/
At this stage, there is no prospect of a reversal of the positive trend for single-family homes. Average prices in prestigious neighborhoods with houses are still significantly lower than those of apartments in preferred neighborhoods in the capital such as Lozenets and Oborishte, where it is almost impossible to find a price below 2000 euros per sq. m. At the same time, houses in neighborhoods with quick access to the center offer a much higher standard of living for families due to the availability of more space, cleaner air, nature and the possibility of privacy.
Looking to buy or rent a house? Check out some of the new offers on our property portal Flats.bg :
Single-family houses under construction in v.z. Malinova Dolina for sale. More info.
House with pool next to Paradise Mall in Krastova Vada for rent. More info
