Over the Past 10 Years, Varna Has Been Experiencing a Boom in Real Estate Construction

Over the past 10 years, Varna has been experiencing a real boom in real estate construction, something noted both by the specialists of the Bulgaria Avenue estate agency and by Bulgaria’s National Statistical Institute. Residential complexes for permanent living and holidays, multi-storey apartment buildings, as well as cottages and townhouses are being built in Varna and the Varna region. 

When analysing the Varna property market, several key trends are worth highlighting.

The bulk of construction consists of residential real estate. According to statistics, in the period from 2011 to 2021 alone, 35,909 residential properties appeared in the towns and villages of the Varna region. As a result, the total housing stock reached 279,336 units. Of these, 82.1%, or 229,216 residential properties, are located in urban areas, and 50,120 houses and flats are in rural areas.

Most of the properties are located and are being built in cities. The leader is the city of Varna — 204,460 residential units have been recorded here, which accounts for 73.2% of the entire regional housing stock. Varna is followed by Aksakovo (13,110 flats and houses), Provadia (10,943) and Dolni Chiflik (8,927). 

Speaking of new developments, in the second quarter of 2023 alone the construction of 1,231 apartments and single-family homes started in Varna. In annual terms, growth amounted to 74%. Over the same period of the previous year, the start of construction of 706 residential properties was recorded. Construction of a further 2,380 flats and private cottages is expected to begin in the near future.

The next interesting trend, observed across the country as a whole, is that the number of multi-storey apartment buildings being erected is decreasing, while their footprint is growing, as is the number of apartments in them. Many researchers of the Varna market are noting an increased demand for multi-room apartments and homes for permanent residence. 

At the same time, buyers’ interest in small flats and studios remains steady. These types of property are used as an investment, for renting out and generating additional income. It is worth noting that over the past two years, rental demand has grown by 30–40%. Rental prices have also risen significantly. 

It should be noted that, despite pessimistic forecasts, both properties under construction and completed housing are currently selling quite actively. If the sale offer is reasonable and all the documents are in order, a buyer can be found fairly quickly. Among them there are many foreigners and Bulgarian citizens. According to statistics, in 2022 there were 3% more transactions concluded than in 2021. 

The increase in construction volumes in 2023 is accompanied by the continuing growth of residential property prices. This is especially true for already completed housing. Year-on-year, the average price increase for apartments in new-build developments in Varna was 25.2%, and for completed properties — 17.9%. By comparison, the national averages were 9.5% and 11.4% respectively.

The majority of apartments and houses in Varna are purchased with the use of loans. In 2022, 39% more housing loans were issued than a year earlier. At the same time, the volume of credit funds when buying a home amounts to 72% of its price.

When buying a property to live in or to rent out, you need to pay attention to many details. These include the price of the flat, the terms of purchase and the availability of documents. This is especially true when purchasing an apartment in a building still under construction. To avoid problems during the completion of  transactions and the subsequent use of the flat, we recommend that you turn to our experts. The specialists at Bulgaria Avenue will help you choose the best property option in Varna for permanent residence and as an investment, and will handle the transaction carefully and safely.