2024-02-18 13:09:24
Green house purchases, which had fallen and almost disappeared in 2021-2022, are back in vogue, a check by “24 Hours” showed.
About 2 years ago, when the prices of building materials suddenly started to rise, many developers returned the down payment that people paid for a still unbuilt home, because with high demand always
they were finding someone to sell it to at a higher price
This, of course, led to a situation where transactions in the green were to be avoided.
At the moment, the demand for new housing is still relatively strong, but the situation with the prices of materials is returning to normal and in more and more cooperatives, housing is being sold at an early stage of construction.
The usual scheme is 20% of the value to be paid when the preliminary contract is signed. The remaining 80% is either paid upon the issuance of deed 16 of the building, or the amount is split.
One part is paid at the completion of the rough construction, and the other – at the commissioning of the building.
“These types of deals are going on and banks are lending money for them
The customers themselves see that buying a home on the green, the prices are still about 30-40% lower than those of similar homes in the same area,” said credit consultant Tihomir Toshev.
The builders themselves prefer this way of selling, because this way they avoid being tied to bank loans for their main activity. In the pre-sale of housing, the profit still allows them to finance the next object, and so they constantly buy plots and build,
without having to pay interest on loans.
Recently, there is another new trend in the market: some builders are becoming something like real estate agencies. They usually set aside one or more attractive apartments from a building they are building, furnish them and sell them as such to buyers. The goal is to rent the apartment immediately, i.e. the buyer is promised a guaranteed return on the property he has bought for a year or two or more. The scheme only works for customers who buy the property for investment purposes and have no intention of living in it, or at least not immediately.
Such homes are also sought after when people buy apartments for their children who do not yet live independently.
By the time they are of age, they usually rent out the property, but this scheme saves them the effort of furnishing it themselves and the headaches of having tenants.
Usually the promised yield on the property is between 4 and 5.5%. Most ads claim it’s guaranteed, ie. payable whether or not there are tenants.
There are already several such cooperatives in Sofia, which are still under construction or about to be completed.
At the moment, housing construction is on the rise, regardless of the overall decrease in the number of real estate transactions. At the end of the year issued new permits for the construction of residential buildings broke a 15-year record. In the last quarter of local administrations in Bulgaria issued documents to 2,275 buildings with a total of 16,788 dwellings in them. This is a growth of 19% on an annual basis.
The construction that started in the last quarter of last year is also quite large. The growth compared to a year earlier was 22.6%.
The area of the dwellings scheduled to be built in the fourth quarter of 2023 is 1,880,330 square meters. That’s up 64% from the same quarter in 2022.
From the latest report of the Chamber of Builders in Bulgaria for the nine months of 2023, published these days, it can be seen that this growth was not only at the end of the year, but was characteristic of the whole of 2023. Building construction for these 9 months was worth BGN 7.5 billion, 24.8% more than the same period of the previous year.