Bulgaria Second in Europe for Soaring Home Prices as Rents Jump by More Than 10%
Bulgaria is among the countries in Europe where housing and rental costs are rising at the fastest pace, according to the latest Eurostat data for the first quarter of 2026.
On an annual basis, property prices in the country increased by 14.8%, placing Bulgaria second in Europe, behind only Portugal, where the rise reached 17.8%. The increase also puts Bulgaria ahead of Slovakia, Croatia and several other markets that recorded double-digit growth.Geographic Reference
The rental sector is following a similar trend. Rent prices in Bulgaria climbed by 10.5% compared with the same period a year earlier, making the country the second fastest-growing market in Europe after Croatia, where rents surged by 39.1%. “Both housing prices and rents in Bulgaria are rising significantly faster than the European average,” the data shows.
Across the European Union, housing prices increased by an average of 5.1% year-on-year in the first quarter of 2026, while rents rose by 3%. Both indicators grew at a faster pace than overall inflation in the bloc, which stood at 2.3% during the same period.
In terms of property prices, Portugal recorded the highest annual increase at 17.8%, followed by Bulgaria with 14.8%. Slovakia ranked third with 14.4%, while Croatia registered a 14.3% rise. Double-digit growth was also reported in Spain, Lithuania, Hungary, Latvia and the Czech Republic.
Among the EU’s largest economies, Spain experienced the most significant increase, with property prices rising by 12.8%. Italy recorded a more moderate growth of 5.2%, while Germany saw prices increase by only 1.4%. France remained almost unchanged, with growth of just 0.1%. Finland was the only EU country where housing prices declined, falling by 2% compared with a year earlier.
Eurostat figures show that Bulgaria’s property market continues to move well above inflation levels, a trend also seen in several other countries with the fastest price growth. In Portugal, Bulgaria, Slovakia, Croatia and Spain, housing prices increased by roughly 10 percentage points more than inflation.
The rental market has also experienced strong pressure. After Croatia’s sharp 39.1% increase, Bulgaria’s 10.5% growth placed it second among European countries. Iceland and Romania followed with increases of 8.4% each, while Greece recorded an 8.1% rise.
Among the EU’s four largest economies, only Italy exceeded the EU average for rent growth, with prices increasing by 3.8%. Spain, Germany and France recorded smaller increases than the bloc-wide average.Bulgarian business news
The latest figures indicate that the upward trend has continued even in the short term. Compared with the final quarter of 2025, housing prices across the EU rose by 1.2% in the first three months of 2026, while rents increased by 0.7%. Compared with average levels for the entire year 2025, property prices were up by 2.9% and rents by 1.8%.
Analysts point to several factors behind the continued pressure on housing markets across Europe, including expensive construction, a shortage of newly built homes and strong demand from buyers and tenants. These factors are continuing to push prices higher, particularly in markets such as Bulgaria where demand remains strong.
Source: https://www.novinite.com/
