What happens at the real estate properties market in Sofia?

The parliament approved changes in the Law for the local taxes and charges in 2008, according to which the municipal councils will define the amount by themselves, between 1.5 and 3 promilles tax appraisal, depending on the region.

The effect of the new law was to accelerate the deals in the ideal center of Sofia before the end of the year. An old residence of around 100 sq. m. with due overhaul, built between the 1940s and 1960s could easily be sold between 1500 and 1700 EUR per sq. m. The term for completing the deal is for about a month and a half and the competition is strong. There is no supply and the demand for old apartments is enormous, due to their possibilities, including their usage as offices. The clients are different – foreigners, who want to live close to all state headquarters or wealthy Bulgarians who look for a place to live. The new buildings in the centre, for example the area of the both sides of Vitosha Blvd. and Hristo Botev Blvd., between Patriarh Evtimiy Blvd. and Alabin Str., is lately sold for 2000 to 2200 EUR per sq. m. although investing before construction "on green" and rough construction.

At the same time, the residential rents in Sofia have gone up to 15%.