• Prices include white finish which is highly unusual in the Bulgarian market. The total price of units, including white finish, can effectively be mortgaged
• The developer is completing these units at a much lower price than final finish costs on the open market and this is reflected in the great prices we have secured
• An independent valuation has valued our units at an average of 18% below market value
• Great investment location just 500 metres from the ring road. Sofia Business Park, which employs circa 10,000 people, is under 10 minutes’ drive from the development
• Aspirational residential area; 10 minutes’ from the ski gondola on Mount Vitosha and journey time to the city centre is less than 20 minutes

This is the first time we have secured units with prices that include white finish in Sofia.

This is rare in the Sofia market where units are normally completed to a shell finish (black finish) with the investor having to finance the final finish cost themselves. This involves painting the walls and installing bathrooms and completing flooring and tiling in the unit. Typically this can cost upwards of several thousand pounds and we are now offering investors the opportunity to cover this cost in their mortgage.

We have secured great prices starting from €78,516/£58,160 including final finish and VAT. Our independent valuation confirmed our belief that we have secured an excellent deal at great prices by valuing our units at 18% below market value. One of the reasons we believe we are 18% below market value is the developer’s ability to complete the final finish at a very competitive price. It is offering the final finish at some estimated 30% below the current open market rate as it is completing the final finish in bulk and not individually. In addition, we have also secured a discount of 5–7% off the developer’s list price.

Property Secrets has also negotiated to be the only investor group in the Buena Vista development. This will ensure a good balance between investment and owner-occupied units, improving the rental potential in the development.The Buena Vista development has views of Vitosha Mountain, which is a popular ski destination for locals in Sofia. The ski gondola is just 10 minutes’ drive from the development.

The best payment terms we have secured to date in Sofia are a 20% deposit and the remaining 80% on completion of the unit at black finish stage. In the Buena Vista deal, the payment terms are 25% up front, with 75% at Act 16, which is on issuance of use permit. This is very rare as most developers expect final payment on either shell stage or completion.

The development is also just 500 metres from the Sofia Ring Road and 10 minutes to the Sofia Business Park, which employs approximately 10,000 people. This is a very desirable residential area in the city and demand for new developments such as Buena Vista is expected to be high from young professionals.

Buena Vista has excellent road links; bus routes are close by and the new Metro route to the city centre is located approximately two kilometres from Buena Vista. Journey time to the city centre is circa 15–20 minutes by car.

A combination of very good payment terms, along with the rare offering of white finish, along with an excellent location benefiting from great transport links, make this deal a great addition to an investor’s property portfolio, which is designed to achieve excellent capital growth.

The Sofia market is currently at the start of its growth phase and it is at this stage of the market that we see the highest capital growth. It is similar to the Bucharest market this time last year when the market really started to boom (capital growth in Bucharest of circa 30% in 2007). We are forecasting growth of around 20–25% in Sofia in 2008. The following graph illustrates where we believe Sofia is on the property price growth curve and demonstrates how far this market has to grow to catch up to where Bucharest and other Central and Eastern European markets are now at.

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