Property prices in Sofia as a whole are still far from their critical levels from 2009, data show. However, several areas of the capital are exceptions and the price levels there are already higher than those of 2008.

Leaders in this regard are Hladilnika and Reduta, where prices are already 9% above pre-crisis levels. In "Mladost 3" prices are 6% higher than previous record levels, and in the center - by 1%.

Overall, in the last four years, the overall price increase in some regions of Sofia has reached 50-70%. This is especially true of neighborhoods with improved infrastructure and concentrated new construction.

Market dynamics in neighborhoods

The prestigious "Lozenets" region fails to regain the high levels of prices since 2008, when the square meter of a two-room flat was worth 1,900-2,000 euros, according to the data. Today, statistics show that prices have risen 35% over the last four years and are 29% below previous record highs.

In another prestigious region of Sofia - Geo Milev, prices are 25% below 2008 levels, although in the last 4 years they have grown by 48%.

In "Mladost 4" the growth for the last four years reaches 49%, but the levels are 10% below the pre-crisis peak from 2008.

In StudentskiGrad, the four-year increase is the lowest - 23%, with prices 21% below pre-crisis levels. The relative sustainability of price levels is explained by the continued interest in properties in this area, given their profitability.

The strongest price growth for the past four years has been reported in "Hladilnika" and in the area of the Paradise Mall considering the renewed infrastructure and the increased construction, including offices - 70%

Interest or bubble?

Customers are oriented not only to the acquisition of a property for living but also to an investment purchase. Two-room apartments continue to be most sought after by young people and by people who invest in properties because of higher rental yields.

Rising real estate prices in this four-year period is not artificial and can not talk about a bubble. It is the result of increased demand, improved infrastructure and beneficial mortgage loans.

However, no higher price increases are expected, as they must also meet the capabilities of the Bulgarian buyer in order to make deals.