21/01/2025
For buyers and tenants
Property buyers are often faced with a dilemma about what type of construction their new home should be, whether to trust a real estate agency, and what steps to take next. If you are about to purchase a new build property for the first time, then the risk of making mistakes is the greatest as you do not have the necessary experience in the complicated home buying process. The truth is that you will be faced with a number of important questions that you will need to find the right answers to, one by one, and our experts have prepared a list of things to familiarise yourself with beforehand.
The real estate market continues to develop at a very fast pace in the first quarter of 2023.
Statistics show that compared to the last quarter of last year, home sales are reporting a decline (on both the number and value side). However, on a year-on-year basis, in terms of value, sales nationally were up by just over 42 per cent, and in terms of number by just over 39 per cent.
The housing market last year experienced price growth not seen in more than a decade. Along with high inflation, there was strong demand for property throughout the year but insufficient supply, further driving price growth. Bank financing remained available - at still historically low interest rates.
The combination of these factors, as well as inflation, uncertainty over house prices and lending rates, is causing buyers to wait, which is curbing demand for homes. But if the country does not enter a recession and people's incomes continue to rise, strong demand for property is expected.
As far as the luxury property market is concerned, there is an increased interest in new construction. "We see in this first quarter of 2023 that customers are very active and new construction is starting to be much more in demand. It is much better quality, more thoughtful, more modern, with advanced technology," says Vesela Ilieva, managing partner at Unique Estates.
The prices of new build homes are higher is than those of older buildings, but it is believed that new build is a much more sustainable investment as the quality will continue to drive up the price. There is a growing interest in new construction in our country. The demand is mainly for detached houses, or apartments in gated complexes, relying on the additional amenities - playgrounds, shops, fitness.
Each type of construction has its advantages and disadvantages, but the pros of new construction prevail. They are essential when both buying and selling a new construction apartment.
New construction combines quality, security, modern design, style and functionality. These are some of the main advantages, as new buildings use the best practices of traditional construction, but combine them with new trends. Thus, owners can get security, quality, modern and beautiful details that are both in the overall facade of the building and in the interior. New construction usually comes with a contemporary look to the building, whereas this cannot be found in old construction.
The high quality materials that are used in new construction are very important and paramount as they affect the overall performance of the building. Innovative materials of the highest level are used.
In addition to quality materials, the latest construction technologies are used. Time-tested technologies from traditional construction are combined with the latest and most modern changes and innovations. Electronic tools are also used, which make it easier to achieve precision and pay great attention to every detail.
In new construction, the layout is much more functional. The buildings are designed according to the latest trends in construction and architecture. Space is used as well as possible and rooms are distributed with optimal functionality.
Statistics show that compared to the last quarter of last year, home sales are down (on both the number and value side). However, on a year-on-year basis, in terms of value, sales nationally were up by just over 42 per cent, and in terms of number by just over 39 per cent.
When it comes to buying a new-build property, the interest of both buyers and investors is focused on certain areas. The south and southeastern districts of Sofia are some of the most sought after and desirable areas to buy in the capital. In recent years, the areas with sufficient vacant space have been developing at the fastest pace. In the central parts of the city it is difficult to find vacant land on which to build new and modern residential buildings. That is why the interest is more in the outskirts of the city, namely in the south, where there is enough free space to build low and practical gated complexes with all the amenities.
The most preferred districts in the capital at the moment are also Malinova Dolina, Manastirski Livadi and Krustova Vada - newly built districts where there is an intensive supply of residential projects and buyers have the opportunity to choose from quality objects.
The supply of properties, in the neighborhoods mentioned above, is also very active with prices, respectively Malinova Dolina between 1500 and 2000 euro/sq.m., Krustova Vada from 1600 to 2300 euro/sq.m., and these prices can be in a very wide range, depending on whether the properties are finished or not, whether they are offered with available furniture, etc.
Currently, prices in Sofia have increased by 25% year on year, with a calming of the property market expected in 2023 as the prices of more expensive building materials are already reflected in the final property prices.
But house price movements over the next year will also depend on a number of factors such as interest rate changes, income growth and whether the country enters a recession.
And as there are still unclear factors, in 2023 property transactions are expected to either fall by between 5 and 10 per cent or hold their 2022 levels.
The trend that has been observed in recent years is that people living in the capital are interested in migrating to the peripheral areas of the city. Reasons for this are usually found in several leading factors - tranquillity, a more favourable environment and proximity to nature, as well as modernity in the construction of new building projects characterised by low-rise construction, such as gated communities. Gated communities are mostly built in quiet and remote areas where residents find escape from the dirty air and the busy rhythm of the big city. The apartments that are located in the heart of the capital cannot offer the peace and quiet that you can count on in the gated complexes located on the outskirts of the city. The proximity to parks and green areas, the reliability and the relaxing environment are motivating more and more people to look into buying a home in this type of complex. But also, apartments in complexes with controlled access can be found both on the outskirts of the capital and in neighborhoods such as Lozenets, Lagera, Hipodruma, Mladost, Vitosha.
Consulting with a property specialist will give you peace of mind that you will go through all the steps of buying a new build property without any problems. Often buyers prefer to go it alone, but this has its risks as you cannot be familiar with the details of what lies ahead once you have decided to invest in a new build property. By choosing to trust the services of a professional consultant, you will save yourself a significant amount of both the duties and responsibilities and the worries that each client faces.
It is good to know that real estate agents know the property market in detail, which will guarantee you a buying process free of worries, devoid of unfavorable offers and serious risks. Good real estate agents are the people who know how to take advantage of any situation to be the most beneficial for you, so their advice is invaluable.
It is precisely because of this comprehensive and professional knowledge, as well as the extensive database and network of valuable contacts that real estate consultants have at their disposal, that working with a professional is more than warranted and fruitful in closing a property deal. So don't hesitate to choose this type of service to make the process of buying your dream home easier.
Many buyers make the decision to purchase a condo under construction because the terms of the deal can be significantly better when purchasing a property directly from a builder. Of course, it is very important to be familiar with all the available information about the developer and the builder by doing some research beforehand.
The investor and the builder may be the same legal entity, but very often the builder is hired as a subcontractor to the investor.
First, do research on the investor company because it is the legal entity that is fully liable for failure to complete the contract within the agreed time. Check when the company was registered, whether it has sufficient capital to complete the project, and whether any insolvency or liquidation proceedings have been opened. You can check the investor company at the Trade Register. It is a good idea to contact an experienced solicitor who will be able to check whether the investor company has sufficient cash resources to complete the construction.
If the builder company is different from the investor company, look for information about it as well. Find out how much experience the builder has and what the quality of its work is - trace the company's construction history - what works it has carried out, were they completed to plan, what is the quality of the completed projects. Research the builder's reputation - look for reviews of the company and if possible speak to previous clients of the company who live in apartments built by the company.
Find out how the construction process will be financed - with a bank loan, the developer's own funds, or the buyers' funds. If the construction is financed by the investor with a bank loan, it is advisable to contact the bank to find out on what terms the mortgage on the property you intend to buy will be repaid.
Check that the investor-seller has planning permission and make sure the project documentation is complete. Investigate when the building right was established - the permit loses its legal effect if the rough construction is not completed within 5 years of its issuance (if the site is not provided with Act 14 within 5 years of the issuance of the permit). Request information on the architectural plan of the building and on all construction documents and protocols.
To avoid trouble over terms or payment amounts, it is advisable to have a purchase and sale agreement that you review carefully with the help of a professional broker or lawyer. They can assist in fixing clear terms and penalties for relevant payments under it. They will also help you renegotiate any clauses that worry you. Don't underestimate the expertise of a real estate consultant. Keep in mind that he or she has the competence to protect your interest when buying a property that is still under design or construction. He is also equipped to work with sketches, drawings and various documents and can guide you as to how well a property meets your demand and how realistic the asking price is.
Buying an exclusive new construction home is an important step. Therefore, trust a reliable company to accompany you during all stages of the process. Unique Estates consultants have the experience you need and will be happy to assist you on the path to making your dreams come true.
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