Housing Index in Bulgaria increased to 237.55 points in the first quarter of 2025 from 228 points in the fourth quarter of 2024. This dataset provides - Bulgaria House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Residential Property Prices for Bulgaria (QBGN628BIS) from Q1 1998 to Q4 2024 about Bulgaria, residential, HPI, housing, price index, indexes, and price.

Key information about House Prices Growth

• Bulgaria house prices grew 15.1% YoY in Jun 2024, following an increase of 16.0% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2006 to Jun 2024, with an average growth rate of 6.3%.
• House price data reached an all-time high of 34.6% in Dec 2007 and a record low of -26.8% in Sep 2009.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

In Bulgaria, commercial real estate yields are fairly high in comparison to the rest of Europe. For example, industrial yields in Bulgaria are more than double that in the United Kingdom (UK). Yields measure the expected future income on an investment. Yields are especially important for those looking to invest in commercial real estate, as capital growth rates tend not to be as high as in the residential market.

In 2024, the average apartment rent in Bulgaria ranged between ***** and **** euros per square meter. The province with the highest rents was Sofia City, where renting an apartment cost on average **** euros per square meter. Varna, Burgas, and Blagoevgrad had the second-highest rental price, at ***** euros per square meter. In Bulgaria, less than ** percent of households lived in a rented home. Nevertheless, the rental market has been growing in recent years, with rent prices rising faster than the average in the euro area.

In the fourth quarter of 2024, the Bulgaria, Spain, and Portugal registered the highest house price increase in real terms (adjusted for inflation). In Bulgaria, house prices outgrew inflation by nearly ** percent. When comparing the nominal price change, which does not take inflation into consideration, the average house price growth was even higher.

Meanwhile, many countries experienced declining prices, with Turkey recording the biggest decline, at ** percent. That has to do with a broader trend of a slowing global housing market.

The Bulgarian Facility Management (FM) market, valued at approximately €80 million in 2025, is projected to experience steady growth, driven by increasing urbanization, expanding commercial real estate, and a rising demand for efficient operational solutions across various sectors. The 3.40% Compound Annual Growth Rate (CAGR) suggests a consistent upward trajectory through 2033, fueled by the adoption of integrated FM solutions and a growing preference for outsourced services, particularly bundled and integrated FM offerings. This shift reflects a greater emphasis on cost optimization and improved service quality among businesses, institutions, and public infrastructure owners. While the market is currently dominated by in-house FM arrangements, particularly in smaller organizations, the larger players are actively pursuing outsourced contracts, leading to market consolidation. Growth in sectors like commercial real estate and industrial facilities is expected to significantly impact market expansion, although potential economic fluctuations remain a factor that could influence the overall growth trajectory. The market segmentation, encompassing hard and soft FM services, caters to diverse needs, ranging from building maintenance to security and cleaning, and further differentiated by the end user sectors. The competitive landscape includes both local and international companies, highlighting a mix of established players and emerging businesses. Companies like GI Enterprise Ltd, KEY Facilities Management, and others are likely vying for market share, focusing on differentiated service offerings and strategic partnerships to expand their reach. The ongoing development of sustainable practices within the FM industry is also driving demand, with clients increasingly prioritizing environmentally conscious solutions. This focus, coupled with technological advancements in FM software and building management systems, is expected to further propel market growth in the forecast period. Continued economic growth and government initiatives promoting efficient resource management are also crucial supporting factors. However, potential regulatory changes and workforce challenges related to skilled labor availability could present some limitations to this upward trend. Recent developments include: January 2021 - First Facility Bulgaria EOOD takes over facility management for Synergy Tower, Sofia. Synergy Tower is a multifunctional office building with a TBA of approx. 50 000 sq.m. It is a sustainable next-generation green building that meets the latest technological and architectural trends and follows all LEED certifications requirements.. Key drivers for this market are: Growing Trend Toward Commoditization of FM, Increasing Investments on Infrastructure Developments. Potential restraints include: Growing Trend Toward Commoditization of FM, Increasing Investments on Infrastructure Developments. Notable trends are: Maintenance of Building Installations Segment to hold significant share in the market.

The financial crisis of 2008 has caused a number of changes in the investment of both companies and individuals. One of the widely invested assets became the real estate market. The decline in real estate prices was noted in 2009 and 2012-2014. The highest decrease in property prices was indicated in Bulgaria, Ireland, Lithuania, Latvia, Slovakia and Estonia. Property prices, despite the crisis, increased however in Belgium and Germany. On average, property prices in the EU declined by 4.4% in 2009, 1.9% in 2012 and 1.2% in 2013.

Turkey experienced the highest annual change in house prices in 2024, followed by Bulgaria and Russia. In the fourth quarter of the year, the nominal house price in Turkey grew by **** percent, while in Bulgaria and Russia, the increase was ** and ** percent, respectively. Meanwhile, many countries saw prices fall throughout the year. That has to do with an overall cooling of the global housing market that started in 2022. When accounting for inflation, house price growth was slower, and even more countries saw the market shrink.

The number of housing units completed in Bulgaria increased significantly between 2018 and 2024. That last year, there were ****** housing units constructed, that was an decrease of more than ***** units compared to the previous year.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Bulgaria Avg Monthly Wages: Gross: NACE 2008: Real Estate Activities data was reported at 2,240.000 BGN in Dec 2024. This records an increase from the previous number of 2,134.000 BGN for Nov 2024. Bulgaria Avg Monthly Wages: Gross: NACE 2008: Real Estate Activities data is updated monthly, averaging 970.000 BGN from Jan 2008 (Median) to Dec 2024, with 204 observations. The data reached an all-time high of 2,240.000 BGN in Dec 2024 and a record low of 510.000 BGN in Jan 2008. Bulgaria Avg Monthly Wages: Gross: NACE 2008: Real Estate Activities data remains active status in CEIC and is reported by National Statistical Institute. The data is categorized under Global Database’s Bulgaria – Table BG.G013: Gross Average Monthly Wages: by Sector.

Bulgaria Labour Cost per Hour Worked: NACE 2008: Public Sector: Real Estate Activities data was reported at 12.840 BGN in 2023. This records an increase from the previous number of 11.210 BGN for 2022. Bulgaria Labour Cost per Hour Worked: NACE 2008: Public Sector: Real Estate Activities data is updated yearly, averaging 6.795 BGN from Dec 2008 (Median) to 2023, with 16 observations. The data reached an all-time high of 12.840 BGN in 2023 and a record low of 5.080 BGN in 2008. Bulgaria Labour Cost per Hour Worked: NACE 2008: Public Sector: Real Estate Activities data remains active status in CEIC and is reported by National Statistical Institute. The data is categorized under Global Database’s Bulgaria – Table BG.G018: Labour Cost per Hour Worked: NACE 2008.

Labour Cost per Hour Worked: NACE 2008: Private Sector: Real Estate Activities data was reported at 14.860 BGN in 2023. This records an increase from the previous number of 13.320 BGN for 2022. Labour Cost per Hour Worked: NACE 2008: Private Sector: Real Estate Activities data is updated yearly, averaging 7.150 BGN from Dec 2008 (Median) to 2023, with 16 observations. The data reached an all-time high of 14.860 BGN in 2023 and a record low of 4.690 BGN in 2008. Labour Cost per Hour Worked: NACE 2008: Private Sector: Real Estate Activities data remains active status in CEIC and is reported by National Statistical Institute. The data is categorized under Global Database’s Bulgaria – Table BG.G018: Labour Cost per Hour Worked: NACE 2008.

The price of residential real estate increased in most countries in the European Union in the fourth quarter of 2023. Prices rose the most in Poland, Bulgaria, and Croatia. Nevertheless, many of the largest markets saw prices decline. In Germany, the house price index fell by *** percent from the same period a year ago. According to the aggregate house price index for the EU, prices mostly stabilized after a brief drop in the second half of 2022.

Hardware and home improvement stores’ revenue is forecast to rise at a compound annual rate of 1.4% over the five years through 2024 to reach €155.8 billion. Private spending on home renovation and maintenance, construction activity, environmental awareness and the number of households each play their part in determining sales. The EU and the UK enjoyed a housing market boom prior to 2023, when soaring mortgage rates deterred many from buying a new house. While demand for outfitting new houses is down, more Europeans are turning to repair, maintenance and renovation work on their existing properties, helping to raise sales of hardware and home improvement products. This trend accelerated during the COVID-19 pandemic, as people confined to their homes looked to refresh their surroundings and found themselves with more time to dedicate to DIY projects. Hardware and home improvement stores were deemed by many governments as essential businesses, allowing them to remain open during the lockdowns. In 2024, revenue growth is expected to be constrained by the cost-of-living crisis. Shoppers are increasingly price-sensitive and many are thinking twice before spending in response to intense inflationary pressures, cutting sales for many hardware and home improvement stores. Price inflation is expected to outweigh falling sales volumes, leading to revenue growth of 1% in 2024. Over the five years through 2029, hardware and home improvement stores’ revenue is slated to climb at a compound annual rate of 1.5% to reach €168 billion. Ever-growing levels of environmental awareness among Europeans will drive strong demand for sustainably sourced and energy-efficient products, like reclaimed wood and lithium-ion battery-powered hand tools. Competition from online-only retailers will continue to heat up, forcing hardware and home improvement stores to expand their in-store offerings to attract customers – augmented reality stations where shoppers can visualise their new products in their homes are one way retailers can try to do this.

In the third quarter of 2024, Bulgaria had the highest prime yields on the industrial and office real estate market and Hungry on the high street retail properties.

The house price to income index in Europe declined in almost all European countries in 2023, indicating that income grew faster than house prices. Portugal, Luxembourg, and the Netherlands led the house price to income index ranking in 2023, with values exceeding *** index points. Romania, Bulgaria, and Finland were on the other side of the spectrum, with less than 100 index points. The house price to income ratio is an indicator for the development of housing affordability across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head, with 2015 chosen as a base year. A ratio higher than 100 means that the nominal house price growth since 2015 has outpaced the nominal disposable income growth, and housing is therefore comparatively less affordable. In 2023, the OECD average stood at ***** index points.