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Apr 16, 2026 16:48
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| Rent explosion in Europe. Where did prices rise the most in 2025 and how is it in Bulgaria? | ||
| Thursday, Apr 16, 2026 | ||
| Amid demand that exceeds supply and rising costs for landlords, Bulgaria is above the European Union average, with a significant increase in rental housing prices. Rent increases exceeded 10% in several European countries in 2025. Experts point out that demand is growing faster than supply across Europe. Finding decent and affordable housing is becoming increasingly difficult in Europe. Housing accounts for about a fifth of the average household income in the EU. This share is significantly higher in some countries, reaching 35% in Greece, according to Eurostat data cited by DIgi24. Rising rents are a significant burden for Europeans. In 2025, rents in the EU increased by 3.1%, and in some countries rent inflation reached double-digit levels. "The key dynamic is simple: demand is growing faster than supply," Kate Everett-Allen, head of European housing research at Knight Frank, told Euronews. "The pressure on affordability in the sales market, especially in the context of still relatively high mortgage interest rates, has pushed more households into renting," she explained. Within the EU, the average rate of change in effective rents for residential properties ranges from 1% in Finland to 17.6% in Croatia. Rent inflation is also high in Greece (10%), Hungary (9.8%), Bulgaria (9.6%) and Romania (8.2%), all of which are above the 8% threshold. Of the countries analysed, Bulgaria ranks seventh among the 10 largest countries where rental prices have increased, above the EU average increase. Kate Everett-Allen pointed out that supply is also under pressure. Tax and regulatory changes have reduced landlord appetite in some markets, while energy efficiency requirements and renovation costs are increasing the maintenance burden on rental properties. Restrictions on short-term rentals are helping a little, but not enough to significantly change overall supply. “The result is a tighter rental market and continued pressure on them,” she said. In addition to Finland (1%), annual rent inflation was below the EU average in Luxembourg (1.6%), Malta (1.7%), Slovenia (1.9%), Germany (2.1%), Denmark (2.2%), France (2.3%) and Spain (2.4%). This shows that rents have increased below the EU average in three of Europe’s largest economies. Of the four largest economies in the EU, Italy (3.8%) is the only country where rent inflation has exceeded the EU average, but by less than one percentage point. The Czech Republic (6.1%), Latvia (5.7%), Lithuania (5.6%), Portugal (5.3%), Sweden (5.3%), the Netherlands (5.1%) and Slovakia (5.1%) are other countries where rent increases have exceeded 5%. “The increase in rents in 2025 was driven by strong demand, as higher house prices pushed more households into the rental market,” said Mick Calmette of Global Property Guide. “Rising costs for landlords, especially those with high debt, have gradually been passed on to tenants, leading to further rent increases,” he explained, noting that countries with less regulated rental markets and limited supply generally see stronger growth, while countries with rent controls or already high rent levels tend to see slower growth. Turkey stands out as a clear outsider with an annual rent inflation rate of 77.6% out of 36 countries. The second highest increase is in Montenegro at 18.5%, showing how far behind Turkey is. “Inflation is extremely high [in Turkey], meaning it is driving a large part of the nominal rent increase,” Everett-Allen said. She pointed out that homeownership is becoming increasingly unaffordable in Turkey. The Turkish government capped rent increases at 25% in July 2022, a measure extended until July 2024, while Turkey’s net minimum wage increased by 27% in 2026 compared to 2025, and almost two in five workers earn the minimum wage. “Rent controls have had unintended consequences,” Everett-Allen said. She explained that annual increases have been capped well below inflation for existing tenants, prompting landlords to try to make up for the losses by sharply increasing new leases, which has led to a sharp rise in market rents. “Housing is often used as a hedge against inflation and currency depreciation, which drives up both prices and rents,” said Kalmet. Overall, rents have increased significantly more in Eastern Europe and the Balkans than in other regions, with Kosovo (1%) and North Macedonia (3.3%) being exceptions. Mick Kalmet pointed out that Montenegro and Croatia also saw strong growth, mainly because they are attractive destinations for both short-term and long-term rentals, especially compared to established markets such as Spain and the South of France. |
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| Source: Âåñòíèê "Òðóä" | ||
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