Construction of Mega Housing Complexes Shifts Towards Sofia District

Construction of Mega Housing Complexes Shifts Towards Sofia District

People are looking for homes in the mountains, but close to the capital city. The focus has recently shifted towards the towns of Samokov and Elin Pelin, and the village of Gorni Okol

© Nadezhda Chipeva


Main takeaways
  • There has been a significant increase in the construction of new residential complexes in Sofia District catering to people seeking tranquility and fresh air outside the bustling capital.
  • Although some locations are 50-60 km away from the city, the travel time is comparable to commuting from the outskirts of Sofia to the city center.
  • Large complexes with a minimum of 40 houses are being built in Samokov, Elin Pelin, and Gorni Okol, while smaller ones with about 10-15 houses are being developed west of Sofia.

Living 50-60 kilometers from the Sofia city center but still reaching it quickly by car is an attractive option for many. It appeals especially strongly to those looking to escape the fast-paced life and noise of the capital while staying within a manageable commuting distance. However, such convenience depends heavily on personal vehicles, which remain the preferred choice due to inadequate public transport links, particularly between cities.

As expected, the highest demand is observed in the outskirts of Sofia, with significant construction activity taking place south of the Ring Road, as well as in settelements like Bistritsa, Pancharevo, and Lozen. By mid-year, completed houses in these complexes totaled 1,700, with nearly 1,200 more under construction across 90 different projects, according to data from property consultancy Colliers.

While living in settlements at the foot of the Vitosha Mountain is trendy and somewhat convenient, the slightly more distant places Elin Pelin, Gorni Okol, and even Samokov (all in Sofia District) have also caught the attention of those seeking serenity and cleaner environment.

Growing Demand in Sofia District

According to data from the National Statistical Institute (NSI), the number of permits issued for housing projects in the district and their total footage has been steadily increasing every year since 2018. The exception was the pandemic year of 2020, which skewed the statistics as nothing was "normal." However, COVID-19 is one of the primary reasons why people realized the need for more space and the freedom of a house with a yard.

Last year, construction permits for 884 buildings with 1,336 homes were issued in Sofia District. Their total built-up area reached 215,300 sq.m., compared to 92,300 sq.m. five years earlier. At that time, only 541 projects for homes were approved, spread across 443 buildings-half the number in 2023.

Growing interest from city dwellers

Real estate brokers and consultants are closely monitoring the market. Polina Stoykova, Executive Director and co-owner of real estate agency Bulgarian Properties told the Capital Weekly that there is demand for residential complexes in the district "for permanent residence, aiming for a quieter life but with easy access to Sofia". She notes that "the settlements around the capital offer lower prices and this makes them attractive to those seeking more affordable alternatives near the city or their workplace, with good transport links."

According to her, "the settlements in the district enjoy a stable local economy with the presence of enterprises providing jobs, which sustains demand for housing". With rising property prices in Sofia and increasing cost of living, more people are moving to nearby areas where they find more affordable housing. "Thus, the region presents a good investment opportunity in the housing sector and in new projects that meet the growing needs for modern homes, offering high-quality living at more affordable prices."

Data from Bulgarian Properties indicate that while the average price of apartments in Sofia has already reached 1,700 - 1,800 euro per sq.m., homes in the surrounding settlements can be found for about 1,100 - 1,200 euro per sq.m. According to Stoykova, supply is still limited, but interest will grow in the coming years.

Large-scale projects on the rise

While single-family houses are typically built for personal use outside the city, recent years have seen the rise of entire housing complexes. This means the whole process-from purchasing the land, preparing plans, and obtaining permits, to construction-is handled by the investor. Future owners only need to pay for the property.

Capital Weekly has selected some of the larger complexes in Sofia District to present in one place. The furthest is in Samokov, 60 km south of Sofia. Notably, these complexes offer turnkey houses, and many include hotel facilities, restaurants, spas, and even sports infrastructure.

Okol Lake ParkA mega-complex has been under construction since the summer of 2020 on a 3,000-decare site between Sofia and the resort of Borovets in the Rila Mountain, initially conceived as an 18-hole golf course covering 650 decares. The spatial plan includes a clubhouse with a shop, changing rooms, a restaurant, a bar, and a small winery, as well as a golf academy. A hotel with 150 rooms and 40 villas, a spa, several restaurants, and a conference center are also planned.

The complex will also feature 650 regulated plots for individually designed houses. These are being built and sold cluster by cluster, with the homes delivered "move-in ready" to avoid the perpetual neighbor renovations issue. The houses vary in built-up area, with the smallest at 110 sq.m. and the largest over 1.7 thousand sq.m. A "village center" is planned within the complex, with a kindergarten, school up to seventh grade, medical and sports-adventure centers, shops, restaurants, office spaces, and a farmer's market.

The land is priced at 150 euro per sq.m. (VAT included), and house prices are based on their quantity survey, with costs varying according to the size, number, and layout of the rooms. As of last year, the average price per sq.m. ranged between 2,100 and 2,200 euro. The larger the house, the lower the price per square meter, dropping to 1,900 euro for large houses and rising to around 2,300 euro for smaller ones.

Samelion

Located on a 60.8-decare site on the outskirts of Samokov, Samelion is a residential complex with 36 single-family and multi-family houses, a hotel, a sports center with a spa, a pool, and a hall for 3,000 people. Construction began in 2021, with the built-up area expected to total nearly 46,000 sq.m. The residential area will cover about 37,000 sq.m., with 23 decares of green spaces.

The investor is defence contractor Samel-90, whose production site is located nearby. Initially, the total investment in the complex was estimated at around 80 million levs (40 million euro), but it has since grown to 110 million levs. Financing comes from the company's own funds and a loan provided by Postbank in 2021. Sales began in the spring of last year, with prices starting at 2,000 euro per sq.m. At the time, the expectation was that the complex would be completed by the end of 2023, but the current completion date is the end of this year. The houses are delivered fully furnished.

Amur GardensA new and lesser-known project is expected to start soon in Kostinbrod, a town about 15 km west from the center of Sofia. Polina Stoykova from Bulgarian Properties shared information about the development. Although details are scarce, the complex will have a total built-up area of 28,000 sq.m. and, unlike other suburban projects, will offer apartments.

The investor is GM Construction, a company co-owned by the Garbi brothers Michael and Walid, and Sergey Marinov. They already have two complexes in Sofia-Amur Residence in the Manastirski Livadi neighborhood, and Amur Homes in Banishora. The Garbi brothers are also involved in the logistics sector through their company Service Logistics, where they are partners with Konstantin Dokovski. The company ranked third in the transportation sector in the Capital's Gepard ranking for 2021.

The West of Sofia

Rising prices and intensive construction activity in the southern parts of Sofia have shifted part of bying interest westwards over the years, where instead of exorbitant 500,000 - 600,000 euro homes, houses cost around 200,000 euro. The difference is that the complexes consist of 6 to 12 houses, rarely up to 30, while those south of the Ring Road have up to 100-250 houses. Additionally, cheaper land in municipalities like Bozhurishte allows developers to afford larger yards instead.

Main takeaways
  • There has been a significant increase in the construction of new residential complexes in Sofia District catering to people seeking tranquility and fresh air outside the bustling capital.
  • Although some locations are 50-60 km away from the city, the travel time is comparable to commuting from the outskirts of Sofia to the city center.
  • Large complexes with a minimum of 40 houses are being built in Samokov, Elin Pelin, and Gorni Okol, while smaller ones with about 10-15 houses are being developed west of Sofia.

Living 50-60 kilometers from the Sofia city center but still reaching it quickly by car is an attractive option for many. It appeals especially strongly to those looking to escape the fast-paced life and noise of the capital while staying within a manageable commuting distance. However, such convenience depends heavily on personal vehicles, which remain the preferred choice due to inadequate public transport links, particularly between cities.

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