New construction in 2026 – will high prices per square meter persist?

The Bulgarian new construction market is entering a pivotal moment – between high material prices, labor shortages and expectations for the eurozone. Many buyers are wondering: will the price increase continue in 2026?

What drives prices up?

1. Expensive building materials and labor.
   Despite the slight easing, costs remain high. 20–25% above 2020 levels.
2. Limited plots in cities.
   The shortage of land in Sofia, Varna and Plovdiv keeps land prices high.
3. High demand for energy-efficient homes.
   New regulations and ESG standards increase costs, but they also add value.
   

Forecast for 2026.

Experts expect:

• Slowing growth rate, but not a decline.
• Average prices to maintain at high levels – about 1,800–2,200 euros/sq.m in Sofia for quality new construction.
• The luxury segment will remain active, while the pace of mass housing may cool slightly.
  

Is a reduction in price possible?

Only with a combination of several factors:

• decline in demand,
• cheaper loans,
• and entry of more projects.
  For now, it seems unlikely – builders would rather delay new projects than sell at lower prices.
  

Conclusion

In 2026 we will probably see market with stable but high prices.
New construction will remain a premium product - with a focus on quality, energy efficiency and location.
For buyers, this means:

• to plan the purchase in the longer term,
• to look for value, not just „lower price“