Sharp Increase in Property Prices Expected in Varna
The expected increase is due to the policy of Varna Municipality, which will lead to a lack of competition and supply in the city.
Bulgaria’s maritime capital is facing significant infrastructure and living conditions problems that have a serious impact on the real estate market. A drastic increase in prices is expected by 2025, according to forecasts by the leading real estate agency “Nov Dom 1”. Yordan Yordanov, managing director of the agency, categorically states that there will be a price hike. “The question is not whether they will become more expensive, but why. And this is where the key lies. This time we have a different analysis.”
The main reason for this is the serious imbalance between supply and demand in the market. While the demand for new and larger properties in Varna continues to rise, the supply fails to meet these needs. Slow issuance of construction permits and problems with the electrical distribution network in many areas of the city further worsen the situation. “The mayor of Varna, Mr. Bogomil Kotsev, is one of the so-called green mayors. He is against having concrete, against construction, against redevelopment, and if it depends on him, Varna will be left empty and construction will completely stop,” Yordanov shares. According to him, this action by the municipality will lead to a serious deficit in construction in the near future, which will consequently increase the prices of available properties. “Do you remember what happened with gloves and masks during Covid? Well, they flew off the shelves,” adds Yordan Yordanov.
An additional complication for builders and investors is the lack of sufficient electrical power in many areas of Varna. “It turns out that in Varna, the capacities have been exhausted in a large part of the city’s neighborhoods,” commented Yordanov. This makes the construction process much more complex and expensive. In reality, the issue of connection becomes very serious, as there is a great risk of not having where and how to connect a new facility. You may even want to build a transformer substation, but if the main substation lacks capacity, you cannot do it, or the connection point is so far away that millions of investments are needed, which are at the expense of the owner/investor, and then this amount is distributed and calculated in the price of the properties that will be offered.
Where does Varna stand in the dynamics of the real estate market?
To fully understand the trends in the real estate market in Varna, we need to compare it with other major cities like Sofia and Burgas. Burgas, for example, has also experienced increased investor interest in the past months, leading to higher property prices. The average price per square meter in Burgas has reached 1,000 – 1,200 euros. However, Varna continues to be more expensive due to better living conditions and higher demand, which puts additional pressure on prices.
According to Yordanov, the current problems in the city will lead to an even greater increase in property values. “There is no capacity, as a result of which construction will become almost impossible at one point,” he emphasizes. This, combined with local factors such as inflation and Bulgaria’s entry into the eurozone, will make Varna extremely attractive to investors in the future. “In this case, what we are talking about is local. It does not cover Bulgaria, but it covers the city of Varna,” specifies Yordanov, noting that the lack of competition and restrictions in construction will further drive up prices.
Investment Opportunities in Varna
For investors interested in real estate in Varna, now is the right time to buy. Yordanov comments that the market in Varna will remain attractive due to the expected price increase. “There are interested buyers who want to purchase better properties, but realistically there is no competition and not enough supply. It is normal for prices to rise drastically.”
“New Home 1” offers its clients opportunities for real estate investments in Varna, providing stable returns through agreed sub-market prices and professional intermediation. This makes it an exceptionally suitable partner for those looking to take advantage of the upcoming market changes.