The situation on the Bulgarian property market in the first half of 2021

According to many analysts, the housing construction market in Bulgaria in the first half of 2021 showed steady growth. This applies to the volume of housing being built, the level of sales, and prices across the country as a whole. However, at the local level, as is often the case, there are specific nuances. Specialists at Bulgaria Avenue are conducting a thorough analysis of construction and sales in the Burgas and Varna regions and are ready to share their conclusions.

Analysis of the construction market

Data from the National Statistical Institute shows that during the first quarter of 2021, 925 residential buildings were commissioned in Bulgaria. The leader was the city of Sofia – 148 buildings were completed there. Plovdiv came second with 131 residential buildings. Third place went to the Varna region, where 118 properties were commissioned. The Burgas region is traditionally fourth with 69 buildings. Interestingly, Blagoevgrad region trails Burgas by only a very small margin – the volume of residential properties commissioned amounted to 64. It is here that the Bansko ski resort is located.

Upon careful examination of these indicators, specialists at Bulgaria Avenue note that despite the solid volumes of construction in the Burgas and Varna regions, new developments are mainly concentrated in the regional centres and large cities. Buyers here are interested in property for permanent residence and as an investment. Thanks to excellently developed tourism infrastructure, the availability of jobs, schools, universities and hospitals, Burgas and Varna have started to attract more and more people for both holidays and living. 

The traditional leaders in construction – the resorts of Sunny Beach, Saint Constantine and Helena, Albena, and Sveti Vlas – cannot boast high construction rates at the start of 2021. Due to the general decline in interest in resort property in 2020, the construction market here has not yet recovered.
Precise statistical data for the second quarter of 2021 is not yet available. However, the Investor internet portal, drawing on general indicators of the construction sector, noted that the main growth in construction after the annual downturn resumed in March. Compared with the previous year, 7.7% more properties were built. In April this figure grew even higher – to 11.5%.

Among property buyers there are many sceptics who do not believe in the recovery of the market. However, we invite you to come to Burgas and Varna. You will see with your own eyes many new residential buildings. Some are already inhabited, others are still under construction. Buyers are offered both premium property and economy-class housing.

The property market in Bulgaria: 2021 trends

Last year, 2020, was marked by the appearance of a huge amount of secondary housing on the market. A sell-off – there is really no other word to describe what was happening. Apartments could be bought 20-30% cheaper than their initial price. Residents of Russia who were unable to come  to Bulgaria began selling their secondary property. There were also many citizens of Great Britain, which had left the European Union, among the sellers. The latter, incidentally, were in no hurry to undercut prices and, compared with Russians, did not sell apartments with excellent renovations cheaply.

This year there was uncertainty for a long time as to whether Russians would be able to travel to Bulgaria. The number of property sale listings fell. According to analysts, this happened because sellers cannot travel to the transaction. But the main reason is that many Russians simply do not want to sell their apartments. They genuinely enjoy living and spending their holidays in Bulgaria, and owning their own apartment by the sea gives them tremendous opportunities to do so.

As for buyers, the bulk of them are citizens of Bulgaria, Israel and other EU countries. Demand from residents of Ukraine and Belarus has increased. Inexpensive studios continue to attract stable interest. For permanent residence, buyers are purchasing two-room and three-room apartments.

According to analysts of the Varna property market, since the start of the year the number of transactions has increased by 20% compared with last year. In roughly a quarter of transactions, buyers are purchasing housing in new developments. About 70% of buyers already own their own home and are now buying an apartment as an investment property.

Property price dynamics in Bulgaria in the first half of 2021

The recovery of demand for property and the easing of the pandemic have led to a recovery in prices. Today it is very difficult to find a very cheap apartment. The exception is urgent sales. The bulk of property in resort complexes and in the towns of Pomorie, Sveti Vlas and Obzor has returned to pre-crisis prices. 

The situation is different in the large cities, especially in Varna and Burgas. Here apartment prices were rising in 2020 as well. Gradual growth is also being observed now. It applies to both new-build and secondary housing. Overall growth has been recorded at the level of 5-7%. Prices of apartments with a sea view have risen even more. In Varna, for example, they have become 20-30% higher.

Bulgaria Avenue constantly monitors trends in the property market. We offer the very best options, selecting apartments and houses that best meet your needs and interests.