Demand for single-family houses near Vitosha mountain at all time highs

One of the most visible trends in the real estate market since the beginning of the pandemic continues to accelerate. In 2021 we report a record interest in single-family houses in the southern districts of the capital above the ring road - Boyana, Dragalevtsi, Simeonovo and v.z. Raspberry Valley. At the same time, the supply of this type of property is at its lowest level in years and currently there are mostly offers for the purchase of green houses, which do not linger long on the market. All indications are that the trend will continue, and quality single-family homes in prestigious neighborhoods will become more expensive and sought after.

 

Working from home and lockdowns also had a positive effect on many Bulgarians, who managed 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 learn remotely without disrupting the parents' work process. This has led to a lasting decline in long-term rents in major cities and a significant increase in deals with houses around them. In 2021, however, we see a gradual recovery in rental levels as companies begin to return their employees to the office. In recent months, traffic in big cities has increased, parking spaces have decreased and we are less and less likely to meet people who continue to work from home all the time.

However, the gradual normalization of the situation makes it difficult to maintain the achieved comfort - the children return to kindergartens and schools, their parents to the offices, and the temporary spacious home remains far from these places. This is the main reason for the record number of inquiries in the agencies and the online space for houses in the districts of Sofia, which offer quick access to the city center and whose infrastructure is adapted to this type of property. The most prestigious among them are Boyana, Dragalevtsi, Simeonovo and v.z. Raspberry Valley. According to the largest Bulgarian real estate portal, the demand for houses in these four neighborhoods has tripled in the last 20 months.

The supply of single-family houses at the foot of Vitosha marks record low levels. According to Homeheed , the number of active ads for the sale of houses in Boyana and Dragalevtsi varies between 220 and 330 from 2018 to the second quarter of 2020, after which a faster decline began. In the last months of 2021. the proposals are already below 150 and continue to decline. 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 the prices per square meter reach 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 less, but the average prices are the highest - 1620 EUR / m2. Malinova Dolina Villa Zone, which borders Simeonovo, is less well known on the market and prices in the area are still lower than in the more famous neighborhoods beyond the ring road, but supply is limited.

Most proposals for single-family houses are in gated communities that are under construction. Significant inflation in building material prices in recent months could have a negative impact on larger projects, where a significant proportion of houses were sold green before prices rose. Therefore, experts advise buyers to focus on smaller complexes, which are just beginning to build and sell - in which investors have taken into account inflation in their calculations and, accordingly, the risk of subsequent renegotiation, delay or default is significantly lower .



/The Cypress Trees Estate featuring 4 single family houses in Malinova Dolina/


At this stage, there is no prospect of a positive trend for single-family homes. The average prices in the prestigious neighborhoods with houses are still significantly lower than those of the 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 square meter. 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 purchase or rent a house? Check out some of our new listings in our property portal Flats.bg :


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