The Bulgarian residential market was growing at a slower pace in the first quarter of 2023, compared to the same period last year. On an annual basis, the increase was 9.5%, and 1.6% on a monthly basis. The data is part of the annual House Market Index by Eurostat on residential property prices and rents in the European Union.
Overall picture
In the first quarter of 2023, house prices in the EU decreased by 0.7% compared with the fourth quarter of 2022, while rents increased by 0.9%. This is the second quarterly decrease in house prices in a row after a 1.4% decrease in the fourth quarter of 2022. Compared with the first quarter of 2022, rents and house prices in the EU increased with a 2.9% rise in rents and a 0.8% increase in house prices. Among the Member States for which data are available, six showed an annual decrease in house prices in the first quarter of 2023. The highest increases were recorded in Croatia (+14.0 %), Lithuania (+13.1 %), and Bulgaria (+9.5 %), while prices fell in Sweden (-6.9 %), Germany (-6.8 %), Denmark (-6.2 %), Finland (-5.1 %), Luxembourg (-1.5 %) and the Netherlands (-0.1 %).
Rents are increasing steadily
House prices and rents in the EU followed a similar increasing path between 2010 and the second quarter of 2011. However, after this quarter, house prices and rents have evolved differently. While rents increased steadily throughout this period up to the first quarter of 2023, house prices fluctuated considerably. From 2010 to the first quarter of 2023, rents increased by 20% and house prices by 46%. When comparing the first quarter of 2023 with 2010, house prices increased more than rents in 18 EU countries.
For Bulgaria, statistics show an increase of over 60% in house prices and 30% in rents. Compared to other European countries, Bulgaria offers relatively lower property prices, making it an attractive destination for both domestic and foreign investors. This affordability factor has stimulated demand and contributed to the consistent growth observed in the market.
