Buy to Let Property Investment in Sofia

Having recently reported on the mixed bag of positive and negative news coming from and affecting the Bulgarian property market, it seems that those who have committed to buy to let property investment in Bulgaria’s capital city of Sofia are only affected by the good news…

Property prices in Sofia in Bulgaria are rising fast, the rental yields achievable are high and vacancy levels are low, the desirability of the city from a home owner, resident, traveller and business person’s point of view is increasing dramatically and those who buy to let in Sofia are generally profiting from their investment.

Sofia has the highest property prices and the highest cost of living in Bulgaria – but at the same time wages are highest in Sofia, job prospects are better and the quality of life achievable in this ever modernising city is getting better by the day.

At the recent Emerging Markets Property Exhibition in London which showcased sixteen of the best emerging markets Bulgaria’s attractive investment position was highlighted by the mayor of Sofia who cited the city as being perfect place for investment into real estate.  He cited factors such as the city’s strategic location, political and economic stability, rapid economic advancement and the fact that many international companies had established operations in the city as being reasons to invest in property in Sofia right now. 

The mayor of Sofia is not alone in his opinions about the city; property experts based in Bulgaria point out the fact that quality accommodation in Sofia is currently in limited supply whilst demand for such real estate is increasing – this means that there is a demand supply ration incongruity causing rapidly increasing property prices and rental rates.

Those who have already purchased a buy to let property investment in Sofia are averaging about an 8% yield whilst watching the value of their asset increase annually as well.  Among the best locations to invest in in the city for those contemplating a buy to let move are areas as close to the centre as possible such as Losenetz Iztok and Ivan Vazov but for those already priced out of these markets look at parts of the city where there are plans for rejuvenation.

And finally, more proof if more proof were needed that the economic situation in Sofia is increasingly positive can be found in the fact that a brand new Porsche centre has opened close to Sofia’s airport and near Stamboliyski Boulevard the luxurious Mall of Sofia has finally opened its doors after months of planning and preparation and it houses among other things the largest cinema complex in Bulgaria, designer stores and extensive shopping, entertainment and dining outlets.