Bulgaria ranks first in the increase of housing prices in the EU also in the fourth quarter of 2024, reports Eurostat

BRUSSELS – A record increase in housing prices of 18.3 percent year-on-year has been reported for Bulgaria in the fourth quarter, according to data from the Housing Price Index, announced by the European statistical office Eurostat. On a quarterly basis, the price increase is 2.7 percent.

In the third quarter of 2024, a record growth of 16.5 percent compared to the same period in 2023 was also reported for the EU. In the second quarter, the annual increase was 15.1 percent, placing the country second after Poland (+17.7 percent). In the first quarter of 2024, Bulgaria reported a price growth of 16 percent, with only Poland ahead at 18 percent.

Housing prices increased by 4.9 percent in the EU in the fourth quarter of 2024 compared to the same quarter of the previous year, while in the eurozone they rose by 4.2 percent, according to data from the Housing Price Index. In the third quarter of 2024, prices increased by 3.9 percent in the EU and by 2.7 in the eurozone.

Compared to the previous quarter, in the third quarter from October to December last year, housing prices increased by 0.8 percent in the EU and by 0.6 percent in the countries of the currency union.

Among the countries for which data is available, two report an annual decline in housing prices in the fourth quarter of 2024, while 24 countries report an increase. The most significant declines were recorded in France and Finland (-1.9 percent for each), while the most significant growth is in Bulgaria (+18.3 percent), Hungary (+13 percent), and Portugal (+11.6 percent).

Compared to the previous quarter, prices decreased in six EU countries, remained unchanged in two (Malta and Finland), and increased in 18 countries. The largest declines were recorded in France and Cyprus (-1 percent for both) and Estonia (-0.7 percent), while the strongest growth was in Slovakia (+3.6 percent), Slovenia (+3.1 percent), and Portugal (+3 percent).

The increase in housing prices in Bulgaria is explained by the approaching date for entering the eurozone, commented Alexander Alexandrov, chairman of the Association of Credit Intermediaries in Bulgaria, in an interview with BTA. Sofia expects an extraordinary assessment from the European Commission and the European Central Bank by June regarding readiness to introduce the common currency from next year. (April 8)