Trophy properties are always trendy

Published in Unique Estates Life Magazine Spring 2024.

Teodora Bivolarska is a partner at Unique Estates and has been part of the company's team for over 14 years. She has received numerous professional awards, most recently the first place for "Consultant with the highest turnover for 2023 - sales," marking the sixth consecutive time she has won this category.

How is the current high-end market characterized?

The increased demand for luxury properties and the favorable housing market conditions in 2023, driven by still-low interest rates, have directed more and more clients towards purchasing high-end properties as an opportunity to invest their savings. The luxury segment market is highly segmented, especially in Sofia's preferred areas. In 2023, we saw a significant increase in transactions, with Unique Estates recording a 50% increase in sales in the price segment above €600,000 compared to the previous year, which is also due to the relatively weak price growth of these properties. In 2024, new sellers are entering the market, but some of them are starting with significantly inflated prices, while properties purchased for investment are not being put on the rental market but are being put back up for sale to realize a higher profit.

The active search for high-end homes is accompanied by less pressure on offer prices. Deals are happening without price discounts, and in 15% of deals, the selling price is higher than the initially advertised one.

Which are the most attractive areas for buyers of luxury properties?

The market is very active in traditionally attractive areas such as Lozenets, Iztok, Izgrev, and the central part of the capital. Doctor's Garden remains one of the most expensive areas in Sofia along with other iconic locations such as the area around St. Alexander Nevsky Cathedral and the National Assembly. In the high-end segment, where Unique Estates is a leader, the average price per square meter is around €3,500, and in iconic locations in Sofia, deals are concluded at twice the price. Buyers are people with their own businesses and secure incomes, and currently, 94% of them are Bulgarians.

Will there be a rush for trophy properties in 2024?

Undoubtedly, trophy properties are the most interesting segment in the luxury real estate business. These are dream homes or apartments for many, with exclusive locations, offering impressive views of landmarks, and often located in historic buildings, cultural monuments. The most expensive trophy property realized by Unique Estates last year has a view of the St. Alexander Nevsky Cathedral and was priced at €7,000 per square meter. Trophy properties rarely appear on the market, so they are extremely attractive and always in fashion. We conclude the fastest deals with them. Their buyers are collectors who have their own funds and invest them in a property that preserves the value of their money and even increases its price over time.