Varna and Burgas are building: new construction has sped up by a third

Varna: 245 → 328 permits (2024 to 2026). Burgas: 156 → 209. At first glance the figures look similar, but the geographic areas are distributed differently.

Varna is expanding to the north (Asparuhovo, Vinitsa, Sveti Nikola), while the pace of development along the coast is slowing. Burgas is speeding up at the same rate: Meden Rudnik has become the epicentre of development, and the coast (Sarafovo) continues confidently, but in a more controlled way.

The +34% figure masks a key internal shift: Varna is focusing on its inland neighbourhoods, and Burgas on quality.

Over the last 18 months we have seen a dramatic change in location preferences. In 2024 the luxury seafront, Sarafovo in Burgas and northern Varna, dominated investment decisions.

In 2026 investors are spreading their capital: Vinitsa in Varna, Meden Rudnik in Burgas, and even Vetrovo is starting to attract international projects. The reason is affordability and developer policy. Seaside properties are already out of reach for the average buyer, even with a mortgage at 2.45%. Construction in the inland neighbourhoods is aimed at a more realistic demographic: young professionals, small families and investors in short and medium-term rentals.

The local developer (1 to 5 complexes in the portfolio, 25 to 45 years of experience in local logistics) is the main driving force. They know the land and the agreements with the neighbours, manage the distribution channels and can improvise when faced with legal or climate obstacles.

On the other hand, Greek and Romanian companies offer more ambitious projects: 200 to 450 homes in one complex, international architecture, a strong focus on the premium segment and tourism certification. For Burgas this mix is critical: the local builder fills the standard segment (€1,300 to €1,600 per sq m), while Greek and Romanian capital raises the bar for the premium offer (€1,800 to €2,500 per sq m).

The standard cycle: permit (2026) → start of construction (summer 2026) → completion (2027 to 2028). This means that over the next two years all ~540 permits in Varna and Burgas will be put into service almost at the same time, which amounts to about 3,200 to 3,600 new homes on the market in two cities.

For context: Varna has about 120,000 households, and Burgas about 65,000. The sudden increase in supply by 5 to 7% of the market will certainly affect prices in the lower and middle segments, while the luxury segment remains well protected.

Studios for holiday rental in Burgas and small one and two-room flats in northern Varna are springing up like mushrooms in the current cycle. On the other hand, supply of such properties is already coming onto the market from earlier permits.

We expect a 15 to 25% “flood” in these segments in 2027 and 2028 in specific submarkets (Sarafovo studios, the Varna seafront). This will push prices down and squeeze out quality projects.

Better protected are larger apartments (three and four-room) and homes in central locations (Varna: Obshtina, Vinitsa; Burgas: Grad). Demand for family homes remains strong, and available land in the centre is extremely limited.

If you are considering buying a small apartment, as an investment or for your own use, the next 12 to 18 months offer the best position. Competition is lower, which allows better negotiations (the developer wants to sell and close the financing), and mortgage terms remain attractive: 2.45% is still available on the market. If you can wait until 2028, the market will offer prices 12 to 18% lower for studios and small apartments, but the choice will be limited and the quality of what remains lower.

For three-room and larger homes in the centre, time is not on your side. Prices there keep rising regardless of the cycle, thanks to the constant shortage of land and to buyers who prefer family living to architectural experiment.