Sofia, Bulgaria - Fly To Let
The Location: University Quarter Sofia, Bulgaria.
Sofia is the capital and largest city of the Republic of Bulgaria, with a population of 1,270,450 (making it the 14th largest city in the European Union), and some 1,380,406 in the metropolitan area, the Capital Municipality. It is located in western Bulgaria, at the foot of the mountain massif Vitosha, and is the administrative, cultural, economic, and educational centre of the country. One of the oldest capital cities in Europe, the history of Sofia dates back to the 8th century BC, when Thracians established a settlement there.
The Development: The Belgravia
Located between the prestigious area of Lozenets and Sofia’s business district and with stunning views of Vitosha Mountain, The Belgravia sits within one of Sofia’s key growth areas. This private complex is in the heart of the University Quarter, and is naturally protected by surrounding parks, sports fields and university buildings.
Newly built properties (particularly gated communities) have become the preferred option compared with the traditional purchase of renovated, older apartments. The first two quarters of 2007 has seen a significant increase in the number of residential developments sold off-plan. The real estate market is also significantly beginning to segment more widely meaning the most popular areas of the city will gravitate towards the upper end of the growth scale. Mortgage-financed purchases also gained momentum during the period. One and two bedroom apartments currently register the highest demand. Property prices are still considered to be in their infancy stages of growth in comparison to other European cities.
Why Invest in The Belgravia?
The Belgravia offers Apartments that have strong appeal within the local market in order to maximise rental return and reselling prospects. Gated communities with leisure and parking facilities have become increasingly popular within the Sofia property market and with limited room for expansion so close to the city centre, demand for such accommodation is high. Accordingly, rental returns from these apartments will have a premium and there will be a dedicated onsite rental and management company available for our clients.
Key Drivers:
- Sofia has one of the highest capital growth rates in Europe
- University Quarter, Sofia (greenbelt district).
- One of the fastest growing areas of the city.
- Ten minutes drive to city centre and five minutes drive to the business district.
- Easy access to and from Sofia Highway and Sofia airport.
- Prime residential area for embassy staff.
- Within walking distance of two underground stations.
- Under 2km from Vitosha skiing, next to the National Sports Academy and Winter Palace of Sport.
- Surrounded by parks, playing fields and university buildings.
- Excellent views of Vitosha Mountain.
- Investment from multinationals flooding into the area.
- Comprehensive plans to develop local infrastructure are well underway
FAQs on the Sofia Belgravia
What level of return can I expect?
Entry level: £30,600 means only £10,700 down payment
Estimated Rental return: Between 5.5% and 7.5%
Rental occupancy: High from Business professionals, university professionals and international under/postgraduates*.
Construction period: 24 months (started July 2007).
Investment period: 3 to 5 years.
Secondary market: Local professionals, business expats and investors.
Market growth: Average of 20% per annum (2002-2006).
Long term drivers: EU accession, increased foreign investment, lowering of interest rates, introduction of mortgages, limited room for expansion.
Short term multipliers: Increased investment in the University Quarter, infrastructure development, continued growth of Sofia Business District.
1 Bedroom Apt
| Property Cost | €77,839 |
| Deposit @ 35% | €27,244 |
| Mortgage @ 65% LTV | €50,595 |
| Monthly Mortgage payment estimate* |
|
| Capital and Interest |
€377 |
| Interest Only |
€274 |
| Management costs @ €8 sqm pm | €38 |
| Annual Taxes pm | €11.66 |
| Rental Income estimate** | €513 |
| Estimated Net outgoings Cap/Rep |
€427 |
| Estimated Net Income | €513 |
| Net balance pm with Cap/Rep Mortgage |
€86 |
| Estimated Net outgoings Int only |
€323 |
| Estimated Net Income | €513 |
| Net balance pm with Int only Mortgage |
€189 |
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Sofia University |
Sofia has a moderate continental climate with high temperature amplitudes. The hottest month is August while January is the coldest. The city receives around 650 millimetres (25.6 in) annual precipitation. Sofia generally remains less hot in summer than other parts of Bulgaria, due to the high altitude of the valley it’s situated in, although temperatures can still reach 40 °C on occasions.
Founded 3,000 years ago, dramatically ringed by the Balkan Mountains to the north and the Vitosha Mountains to the south, the capital stands on an open plain 550m (1,804ft) above sea level in western Bulgaria.
The town centre is dominated by neo-classical Stalinist architecture however a peek through the side streets and century-old commercial quarter reveals the true magic of Sofia - a very European city of tree-lined boulevards and balconied buildings by 19th-century Russian and Viennese architects. Standing among a cluster of ancient and neo-Byzantine Orthodox churches, and one functioning mosque, which is virtually all that remains of 500 years of Ottoman domination
However, it is in street life that the character of the city is to be found. Locals meet for coffee at open-air cafés, vast bazaars offer an array of pickles and farm produce, gypsies sell flowers on street corners, while shoppers queue to board the city's rattling trams and folk musicians serenade the metro users.
From the earliest times, Sofia's main attraction has been its thermal springs, which are still in public use today as a water source. Its strategic location on military and trade routes made it an important administrative centre in Roman times, reaching its grandeur as an early centre of Christianity during the reign of Constantine in the fourth century.
However, today's visitors to Sofia will find little of the austere Eastern Bloc society of the past. More likely they will be pleasantly surprised by the lively streets, appearance of increasing affluence, new boutiques and clean, well-organised streets. With unemployment and inflation rates plummeting, the EU's newest member is gaining credibility and regaining economic stability, pleasing its educated population. The city's motto, ‘Ever growing, never old,' is as true today as it ever was.
Bulgaria's accession to the EU in January 2007 has no doubt further boosted its appeal as a tourist destination, and will help its economic growth in years to come
* The above figures are illustrations of what might be achieved. The actual figures could be higher, or lower. With any property investment there are risks: Interest rates could rise, property values fall, rents fall, so it is important to consider the risks as well as the potential rewards.
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