First home: 7.6 annual salaries and a gap that keeps widening
Home prices in Varna are rising almost 5 times faster than wages. Mortgages are cheaper than ever, but just getting to the first repayment takes more and more years. We have gathered the real numbers in one place.
Prices and wages are heading in different directions.
The Bulgarian National Bank (БНБ) considers the residential property market in Bulgaria overvalued by 13.8% relative to economic fundamentals. The price index is also rising on a quarterly basis, by 6.2% for Q1 2026. The trend is getting worse every quarter, not better.
Over €2,000 per square metre.
The real range in Varna is €1,400 – 2,500 per sq m. The number of deals is down by about 19 – 20% year on year, but prices remain consistently high, with growth of 13.2%.
Burgas, for comparison: median price €1,545/sq m.
Who earns more?
How many salaries does a home cost?
The property price alone, before taxes and living costs. As a general guide: nationally it takes 8 – 10 years of actual repayment if the whole salary is saved; in Sofia, 10 – 12 years of an average household’s annual income.
Affordability rule: a home is affordable when mortgage costs stay below 30% of the household budget; above 40 – 45% we are talking about housing that is unaffordable. The figures above are our own estimates, based on market prices and wage data from the National Statistical Institute (НСИ), not official statistics.
The deposit takes years.
Saving up a 20% deposit realistically takes 5 – 8 years for a single buyer who is actively saving. Our own estimates, based on the average wage and market prices in Varna.
The mortgage is cheap. Getting in is not.
DSTI maximum 50%
Maximum term 30 years
Housing loans in Bulgaria reach about €18.3 billion, with annual growth of 29.7%. Interest rates remain at record lows, but the stricter DSTI and down payment requirements mean that getting to the first repayment remains the main obstacle, not the repayment itself.
For context on why rates moved this way while the European Central Bank raises its own, see Frankfurt raised rates, and the Bulgarian mortgage got cheaper.
Bulgaria is among the leaders in the EU for price growth.
Almost 3 times faster than the euro area average of 4.7% – 5.1%. According to Eurostat data for Q1 2026.
Housing is relatively more affordable compared with incomes.
Similar problems with housing affordability.
The drop is among investors, not first-time buyers.
Nationally, 2026 is a record year for first-time buyers in the last two decades. The drop in deals mainly affects investment purchases, while first-time buyers remain relatively resilient.
BulGhar Homes works mainly with end buyers in Varna, exactly this resilient group. See how the buyer profile has changed in The buyer has changed.
Not a one-way trend.
In the short term the gap is visibly widening, with prices outpacing wages every quarter. In the long term homes remain the most affordable compared with at least a decade ago, thanks to record low interest rates.
Media coverage ranges from alarmed (“overvaluation”, “generation rent”) to objective (“the market is finding its balance”). BulGhar Homes looks at the numbers with informed realism: specific Varna data, without insinuations in either direction.
Looking for your first home in Varna?
We know the Varna market from the inside: specific numbers, a specific plan, not general advice.
Comments
No comments yet, be the first.