Sofia’s residential real estate market continues to set records
- H1 2021 marked a record-high in closed transactions for the reported period in previous years
- Started residential developments have only been higher in H2 2019 in the reported period
- New and renegotiated mortgage loans exceeded BGN 2 billion for a second consecutive year-half
- Supply is expected to exceed demand in two years
- On average, housing continues to become more affordable for the Bulgarian household
The Bulgarian office space market remains stable during state of emergency
MBL conducted a survey among 85 landlords in Sofia whereas overall results indicate that there is a level of comfort among experienced developers with sustainable office buildings.
Despite the covid-19 crisis only 4% of respondants will postpone paying loan principal and 65% specify that they do not expect to lower rents. This indicates both healthy levels of leverage and sustainable rental income based on strong tenant roaster.
73% of the participants have noted that the shortest rental agreement in their buildings will be 5 years while 22% have indicated that they will accept a 3-year agreement. As for the changes requested by tenants – 71 % asked for deferred rental payments.
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