The natural decline of the population in Bulgaria does not seem to affect the city of Sofia, at least so far. It also reflects a higher purchasing power, the increase in GDP and the reduction of unemployment.
Average salary growth in Sofia has been constant over the last 10 years, according to official data from the Ministry of Labor and Social Policy. In 2008 the average salary was 754 leva, while in 2012 for the first time, the limit of 1000 – 1005 leva was exceeded.
In 2017, the sum amounted to 1433 leva on average and 2018 to 1492 leva (not including data for the last quarter of 2018). These figures show that the average salary of the capital during the 2008-2018 period increased by 97.8%.
The data synthesized for the period 2008-2018 show that 7,484 buildings have received a construction permit, which represents a total of 56,827 homes.
The reasons why most of the buyers currently prefer new constructions are the following:
– New and well maintained common areas.
– Possibilities to buy a parking space or garage.
– Young people with similar interests from the same social circle.
– A higher rate of financing by banks when using a mortgage loan and, consequently, the need for a lower percentage of buyer participation.
The significant growth of the construction of new buildings will increase the offer, but should not expose all Sofia to this common denominator due to the size of the city. It should be noted that the large projects focus on the southern and southeastern parts of the capital.
It is important to bear in mind that factors such as the low-interest rate
The constant increase of the population in this city, the higher salaries and the lower number of new buildings during the so-called crisis, have reflected and increased the levels of sales and rentals .
Most experts expect the European Central Bank to raise interest rates on mortgage loans in 2019. From their point of view, this increase will be smooth and gradual, but it should also be taken into account.
It is expected that interest rates on bank deposits will continue to fall and consequently, according to many people, investment in real estate will become the second most popular way of managing savings in Bulgaria. In addition to traditional long-term loans, the sale of properties to short-term users is also a common option.
In general, it is important to mention that in 2017 the amount of investment in Bulgarian properties increased by 153% compared to 2016. It is also essential to know that immigration investors are accustomed to investing in property and one of the reasons why This is so, lies in the fact that these types of assets are a symbol of wealth in many cultures.
In Bulgaria, an investor can obtain residence through the real estate acquisition program. The Bulgarian Investment Citizenship Law establishes that only disbursements in Bulgarian State bonds or shares listed on the Bulgarian Stock Exchange qualify for the program.
It is essential to understand that Us Offshore’s reimbursable property offer is only used to generate returns, that is, rental income, which is used to pay financing costs. Then, the applicant can sell the property to the previous owner, sell it to any person in the market or stay with it and receive the rent. This unique approach makes our offer stand out from the others and explains our resounding success with these products.
There are great advantages in this process of real estate investment:
- First, there is a reimbursable investment of 412 000 EUR in two apartments.
- An investor can obtain permanent residence within 6 months and, more importantly, be eligible to become an EU citizen in just 18 months, which is very difficult to achieve otherwise.
- The investor can include his family immediately.
- Annual returns are used to obtain capital to opt for citizenship.
Offshore World has created links with the largest real estate developer in Bulgaria, who recently completed the construction of some of the tallest residential buildings in the country, such as the Millenium Center in Sofia. Said developer has also been in charge of other constructions such as the Sofia Airport, private villas communities, some of the best hotels in the city (the Grand Hotel and the Central Park Hotel) , as well as coastal resorts such as the Lilia Hotel in Varna and the Golden Sands . The company has more than 20 years of experience in the local market and a solid financial experience.
Us Offshore would be happy to put you in contact with the most qualified specialists to guarantee your success in this new real estate market Do not miss this unique opportunity! Contact us now