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Shortage of homes in Sofia

The analysis of the real estate agency Arco Real Estate indicates that the growing population of the capital and the limited investor interest in housing in the city may lead to shortage of quality new homes in the next one to three years.

Although Bulgarian population decreases in the last six years, inhabitants of Sofia have increased by over 65 000 people. In the capital city, from other cities are moving around 6500 people per year, which need housing.

The statistics show that Sofia has relatively young population in working age, with higher monthly income of the average for the country and greater opportunities for purchase.

However the issued permits for the construction of new apartments in the city are declining, as in the past three years, the number is around 1000 average per year. Only about 60 % of them are implemented in practice.

The investors are not active in the realization of new projects and if they start them at all, there are smaller in space and number of apartments in comparison with previous years.

Experts predict that, if the pace of growth of the population in Sofia is kept at this way, part of the people which have the desire for a bigger and better home, may be disappointed by the market and have to pay more for what they want, to change the parameters of their search or to postpone their purchase.