Apartments in Hladilnika and Reduta are rising in price the fastest in Sofia

Housing in the Hladilnika and Reduta neighborhoods increased in price the most in Sofia for the first nine months of this year compared to the same period in 2023.

The former industrial zone Hladilnika, which is now among the neighborhoods in Sofia with the most active construction of modern offices and residential buildings, has the strongest growth in the offer prices of three-room apartments, they have increased by 22% on an annual basis by the end of September and reached a level of 2,761 euros per sq m.

The top three is completed by two eastern neighborhoods, which are traditionally among the preferred ones by buyers - Reduta and Geo Milev, where the prices of three-room apartments have increased by 18% and 17% respectively for the period. The average asking prices of homes in the two neighborhoods, which are also preferred by construction entrepreneurs for starting new projects, reached 2,351 euros per square meter and 2,791 euros per square meter, respectively, by the end of September.

19 neighborhoods recorded double-digit growth in the prices of three-room homes. The remaining three are Krastova Vada, Strelbishte and Vitosha with price increases of 16%, 12% and 10%, respectively. The southern neighborhood Strelbishte is also among the traditional preferred neighborhoods in Sofia for purchasing a home thanks to its proximity to the South Park. It is also preferred by investors due to the good infrastructure there. Krastova Vada and Vitosha are some of the neighborhoods of Sofia with the most active housing construction in recent years, although the lack of accompanying infrastructure there remains a problem.

By the end of September, the top three Sofia neighborhoods with the highest asking prices for three-room apartments were Iztok, Lozenets, and Izgrev. In all three, prices for three-room apartments exceeded 3,000 euros per square meter. However, in Izgrev, they seem to have reached their ceiling, as they remained almost unchanged from September 2018 to the end of September 2019. In Lozenets and Iztok, the growth was 5% and 7%, respectively.

Lyulin is the most affordable neighborhood in Sofia for buying a three-room apartment with average asking prices of 1,649 euros per square meter. They have grown by 7% per year. Ovcha Kupel 2, Studentski Grad, Pavlovo, and Mladost 4 complete the top five most affordable neighborhoods, where asking prices are still below 2,000 euros per square meter.

During the first nine months, two-bedroom apartments in Sofia have risen in price faster than three-bedroom apartments, with ten of the 19 surveyed neighborhoods reporting double-digit price growth. This type of property is traditionally the most preferred by buyers according to data from real estate agencies.

The highest increase in offer prices was in Reduta, by 28% year-on-year to 2,450 euros per square meter. In Hladilnika and Geo Milev, they rose by 21% per year to 2,776 euros and 2,815 euros per square meter, respectively. The top five neighborhoods with the fastest-rising prices for two-bedroom apartments also include Vitosha, Iztok and Izgrev, with 17% and 16% respectively.

The last two neighborhoods are also the most expensive to buy a one-bedroom apartment in Sofia with average asking prices of 3,223 and 3,371 euros per square meter, respectively. Asking prices exceed 3,000 euros per square meter in Lozenets as well.

Lyulin is once again the neighborhood in Sofia with the most affordable asking prices for one-bedroom apartments at 1,680 euros per square meter, an increase of 6% year-on-year. In the next two most affordable neighborhoods, Ovcha Kupel 2 and Studentski Grad, the average asking prices are 1,800 and 1,846 euros per square meter, respectively. One-bedroom apartments with an average price below 2,000 euros per square meter can still be found in Pavlovo, Mladost 4 and Vitosha.