Burgas, Bulgaria — The latest data from Bulgaria’s National Statistical Institute (NSI) reveal significant shifts in the residential construction landscape of the Burgas region.
According to preliminary figures for the third quarter of 2024, 137 residential buildings were newly commissioned in Burgas, containing a total of 681 new dwellings.
While the number of buildings and individual homes has decreased, the average size of newly built residences has notably increased.
The NSI data shows a year-over-year decline in the number of residential buildings completed, down by 5.5% compared to the third quarter of 2023.
This decline in residential construction is further emphasized by the sharp drop in the number of newly built homes, which decreased by 47.8%, with 623 fewer dwellings built compared to the same quarter last year.
The new dwellings constructed in the third quarter of 2024 mark a substantial reduction in housing availability in the Burgas region, raising potential concerns about housing supply amid Bulgaria’s evolving real estate market.
Among the new buildings commissioned, reinforced concrete construction remains the dominant structural choice, representing 88.3% of new developments.
The remaining 11.7% of the residential structures were built using brick, reflecting Bulgaria’s longstanding tradition of brick construction while highlighting the popularity of more modern, durable building materials.
This preference for reinforced concrete may reflect both urban expansion demands and changing preferences in building techniques that prioritize durability and modern design.
Further NSI data indicates a considerable contraction in the total usable space of newly built homes. The total usable area in new homes during the third quarter of 2024 measured 56,153 square meters, a 29.9% decrease from the same period in 2023.
Additionally, the residential area, which represents the space designated for living rooms, bedrooms, and other living spaces, also decreased significantly by 33.4% to reach 40,231 square meters.
This reduction in total available living space aligns with the overall decline in housing units, suggesting a leaner period for residential development in the region.
Despite this overall drop in construction volume, there has been a remarkable increase in the average useful area of newly built dwellings.
Compared to the third quarter of 2023, when the average size of a newly built home was 61.4 square meters, this year’s newly built residences now average 82.5 square meters — a 34.5% increase in size per unit.
This shift points to a trend where developers are focusing on larger, potentially more luxurious or spacious homes, catering to a demand for greater living space per unit, even as the number of new homes decreases.
These dynamics reflect broader economic and real estate trends in Bulgaria. While demand for housing remains, the current focus may be shifting toward higher-quality, larger residential spaces that serve buyers seeking more substantial homes.
Analysts suggest that factors such as increased construction costs, labor shortages, and higher interest rates could be influencing both the volume and type of residential construction, with developers opting to create fewer but more spacious dwellings.
This change in construction strategy could have various impacts on the housing market, particularly in Burgas. As the city continues to attract both local residents and international investors due to its coastal location and growing infrastructure, the trend toward larger homes may signal a targeted approach by developers to cater to a specific market segment, albeit at the expense of overall housing stock.
The NSI’s findings suggest a mixed picture for the Burgas real estate market, with a clear decrease in housing supply but an increase in home size for the properties that are available.
As the real estate sector navigates these shifts, the evolving landscape in Burgas may reflect a broader transformation in Bulgaria’s housing market, one that seeks to balance affordability with the growing demand for spacious, high-quality homes.