If we look back five years, the picture would be completely different. From building materials and labor to furniture, flooring, and final details – what changed in five years, and how can we plan a realistic budget for our home?
 

“Five years ago, with this budget, I could furnish the entire apartment. Now it barely covers the renovation.”
 

We hear this sentence more and more often from people planning a new home or a complete renovation of their existing property. And it’s not just a feeling. Between 2021 and 2027, the construction, renovation, and interior design market went through a serious transformation. We have been in this industry for over 15 years, but the price boom in the last few years has been significant!
 

So, how big is the difference actually? And why does an interior design project require much more careful budget planning today?

2022 – The year prices broke away from their usual rhythm

2022 was a turning point for the construction sector. The aftermath of the pandemic, disrupted supply chains, the energy crisis, and the war in Ukraine led to a sharp increase in the prices of a number of basic building materials.

According to National Statistical Institute (NSI) data, the producer price index for building materials on the domestic market reached approximately a 79% increase in just one year.

The long-term picture is even more telling. According to Eurostat, the prices of constructing new residential buildings in Bulgaria increased by 166.1% between 2015 and 2025. This is one of the highest growth rates in the European Union.
 

Where do we feel the difference the most?

Often, when talking about a more expensive renovation, the focus falls on materials. However, in a modern interior design project, labor plays an increasingly essential role.

Not all parts of a renovation become more expensive at the same rate. However, there are several key items that have a particularly large impact on the final total today:

The Kitchen – One of the biggest investments: A kitchen is now much more than just cabinets and a countertop. Custom dimensions, MDF fronts, high-quality hardware, hidden mechanisms, lighting, and engineered stone significantly affect the price. The difference between standard off-the-shelf furniture and a custom-designed kitchen can be substantial. That is why the choice of materials and mechanisms here must be well thought through.
 

The Bathroom – Small area, big budget: Large-format tiles, concealed installation frames, high-quality faucets, and sanitaryware are only part of the costs. To these, we add waterproofing, plumbing work, installation, and bathroom furniture. The bathroom is one of those rooms where cutting corners on the wrong item can lead to much higher costs later on.
 

Custom Furniture: Clients are increasingly looking for personalized solutions that maximize space. However, this requires more precise design and high-quality execution.
 

Labor – The cost we often underestimate: Even when we choose the exact same materials as five years ago, the execution cost is completely different. Craftsmen, cabinetmakers, electricians, plumbers, and installers – they are all part of the budget. Labor itself is one of the primary reasons renovations are significantly more expensive today, even when not selecting luxury materials.

How much should we budget for renovation and furnishing?

Our advice to every client is:
 

Do not set your budget based on how much you want to spend. Set it based on what kind of home you want to achieve.

Often, the most expensive renovations turn out to be the ones where initial compromises were made, leading to a large portion of the work being replaced later.

For new construction, the easiest way to start planning is by using an approximate price per square meter.

Price segment 600-800  €/m²

• Suitable for more functional and budget-oriented interiors with carefully selected materials and furnishings
• Particle board (chipboard) for furniture
• Lower-grade flooring / wall coverings

Price segment 800-1200  €/m²
 

• “The Golden Middle” – the most common budget range for modern residential interiors.
• Allows for the use of high-quality materials, customized solutions, and higher-end furnishings.

Price segment 1200+  €/m²
 

• High-end execution
• Designed for premium materials, designer furniture, high-end appliances, and execution with exceptional attention to detail

How to Stay Within Budget?

Higher prices do not mean you have to compromise on quality or give up on your dream interior. They simply mean you need to plan better.
 

Start with a comprehensive project design. When you know what your home will look like before the renovation begins, you avoid improvisations, last-minute changes, and expensive corrections along the way.
 

Determine where it pays to invest. In the kitchen, hardware, flooring, and waterproofing, quality matters long-term. For other elements, you can find a more affordable alternative that offers an equally great visual result.
 

Set aside a 10–15% contingency buffer. Unforeseen tasks and changes are common during renovations. It is always best to have a financial buffer rather than being forced to make last-minute compromises.

You are investing hundreds of thousands of euros in your home. Why leave its execution to chance?

Let's look at a completely realistic example.
Imagine a 100 m² apartment in Sofia's Krastova Vada neighborhood. At an estimated price of €3,162/m², the property is worth around €316,200.

Add €70,000 for renovation and furnishing at a budget of €700/m². This brings the total investment to €386,200.

And how much does a full interior design project with 3D visualizations cost for a home with two bedrooms, a bathroom, and a living area at Homely? Around €2,500.

That is merely 0.67% of the total investment or 3.7% of the renovation and furnishing budget.

In exchange for this amount, you receive a pre-planned concept, functional solutions, 3D renders, technical documentation, and a clear roadmap for executing your entire home.

A single mistake in the kitchen, a poorly planned bathroom, or custom furniture ordered with inaccurate measurements can cost more than the design project itself.

Good interior design begins with a good plan

A high budget on its own does not guarantee a great result.

We believe that a good interior design project is not just a pretty 3D render. It is a way to allocate funds wisely, avoid costly mistakes, and create a space that works for the people living in it.

Planning a renovation or furnishing?

Explore the online interior design possibilities at Homely.bg and take the first step toward a home tailored to your needs and lifestyle.