Luxury estates in Sofia remain expensive
Sofia is among the most expensive capitals in Europe when it comes to real estate prices, keeping in mind the revenues of the citizens. The average annual salary of the Bulgarian is enough for buying less than 2 sq. meters in the center of the capital. Sofia, Bucharest, and Warsaw turn out to be the three most expensive European capitals in this respect, statistic data by Eurostat show. Most affordable in relation to the revenues of the citizens are real estates in Brussels, Berlin and Vienna. Most of the countries in the top chart of unaffordable real estates are in Eastern Europe, where the prices rocketed in the past years. The statistics concern luxury apartments of 120 sq. meters in European capitals. But who buys these apartments?
The renowned actor Liam Neeson recently sold his estate in Central Park in Manhattan for 1.2 million euro. A similar estate in Sofia’s downtown costs much more. Statistics show that the most expensive apartment that is currently on sale in the center of Sofia costs nearly 2 million euro. It was built in 1981 for the needs of the communist party. The mega estate of the American actor Tyler Perry that he bought in Augusts includes 59 acres of land in Atlanta and a golf course. A three-decare residence with a tennis court in the Sofia district of Dragalevtsi costs 6 million euro.
“The explanation is simple. It does not matter where you sell your property. There is a minimum price, at which one is ready to sell,” Tsvetelina Taseva, Executive Director of one of the biggest real estate agencies in Bulgaria, Address, says. “If there are over-priced estates they remain unsold for a long time. Generally, every estate on sale looks for its potential buyer. It is also a question of demonstrating social status or prestige.”
Rich Bulgarians could buy cheaper estates in Vienna, Geneva, Amsterdam, Lisbon, Kuala Lumpur, or New Delhi but they prefer to pay double in order to demonstrate prestige in Sofia. The average price of a 120 sq. meter luxury apartment in Vienna is 350 000 euro. In Geneva the price is 670 thousand euro. A similar apartment in the luxury Sofia district of Iztok reaches 1.2 million euro. In another rich district called Lozenets the price reaches 990 000 euro. In the center of the capital the price is 750 000 euro. The prices in Bulgaria have already reached the prices in Switzerland, the Netherlands, Austria, and Luxembourg.
“Actually, a number of offers for luxury estates costing between 120-150 thousand euro exist in the center of Sofia,” Tsvetelina Taseva says. “Actual prices reach 2 000 euro a sq meter. There are more expensive fully furnished luxury apartments, as well, but there are not many sales. Buyers can decide if they want to buy a real estate in Vienna or in Sofia. There are many Bulgarians, coming from abroad and buying apartments in Sofia because of the decreasing prices.”
The price of some of the luxury real estates have been reduced by 200 000 euro just for a month. For a year the real estate prices in Bulgaria have dropped by 45%. What will happen to the local market?
“Prices have stabilized a bit since the beginning of 2010, which means that they haven’t dropped by more than 5-8%. We don’t expect serious changes at the market, which is more or less balanced.”
Global markets have experienced stabilization in the past year. At the same time some experts fear the prices of real estates can reach another crisis point.
Text and photo: bnr.bg
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