In the first quarter of 2026, the real estate market in neighboring Bulgaria faced a sharp disconnect between rising prices and actual buyer activity: housing prices continue to rise at double-digit rates, but the number of transactions is declining significantly, according to the National Institute of Statistics of Bulgaria.
According to statistics, residential real estate prices in Bulgaria rose by 14.8% year-over-year in the first quarter. In the first three months of the year alone, the national average price increased by another 6.2%. At the same time, the number of transactions involving new and existing homes fell by 18.5% year-over-year and by nearly 20% compared to the previous quarter.
This disparity points to a phase of price overheating: sellers continue to set high price expectations, while buyers are increasingly postponing transactions. The market is influenced by a combination of several factors—expectations following Bulgaria’s transition to the euro, low mortgage rates, rising construction costs, and limited high-quality supply in major cities and along the coast.
Burgas led the price increases, with prices rising 17.7% year-over-year and 5.9% quarter-over-quarter. At the same time, this very market saw one of the sharpest declines in activity: the number of transactions fell by 30.5% year-over-year. This means that demand along the coast has become significantly more price-sensitive.
In Sofia, housing prices rose by 16% year-over-year and by 5.8% quarter-over-quarter. Average prices in the capital settled in the range of 1.8–2.6 thousand euros per square meter. At the same time, the volume of transactions in Sofia fell by 19.2%, and the market’s total transaction value decreased by 7%.
Varna also remained in the double-digit price growth range: housing prices rose by 13.2% year-over-year, but the number of transactions fell by 27.6%. In Stara Zagora, annual price growth stood at 12.7%, though the number of transactions fell by 25%. On a quarterly basis, housing prices in Stara Zagora declined by 2.1%.
Plovdiv appears to be the most stable among the major markets. Prices there rose by 8.8% over the year, while the number of transactions fell by only 0.6%. In monetary terms, the Plovdiv market even grew by 2.4%, making it the most balanced among Bulgaria’s major cities.
For investors, the situation is becoming more challenging. Rapid price growth amid a decline in the number of transactions means that market liquidity is deteriorating: a property may be gaining value on paper, but selling it at the desired price is becoming more difficult. This is especially true for locations where prices have risen faster than household incomes and rental yields.
For a long time, the Bulgarian housing market was supported by relatively affordable mortgages, an influx of foreign buyers, interest in resort real estate, and expectations related to the country’s accession to the eurozone. However, current statistics show that purchasing power is already approaching its limit.
According to The Serbian Economist, Albania’s Ministry of Finance has submitted a draft bill for public discussion that would increase property taxes and revise the system of tax breaks for homeowners.
Under the proposal, the tax on residential real estate could rise from the current 0.05% of the property’s value to 0.1–0.2%. Higher rates are also proposed for commercial properties, with the total tax burden depending on the property category and its intended use.
One of the key changes concerns owners of second and subsequent properties. If the property is not their primary residence, tax exemptions will not apply. Thus, owners of vacation homes, investment apartments, and additional housing will have to pay the full rate.
In effect, the government is attempting to distinguish between social housing and investment real estate. For families who own only one apartment, the tax increase may be partially offset. For owners of multiple properties, the tax burden will rise more significantly.
The reform is particularly important for Albania’s real estate market, where housing prices have risen rapidly in recent years in Tirana, Durres, Vlora, Saranda, and other locations linked to tourism and investment demand. Amid active construction, interest from foreign buyers, and the growth of short-term rentals, the government is seeking to increase local budget revenues and align property taxation more closely with the market value of assets.
Albania is gradually transitioning from the old model of fixed or low taxes to a more modern system where the tax base is tied to the property’s value. This approach is in line with the recommendations of international financial organizations, but it could prove painful for property owners, especially if the cadastral and market valuations of residential properties are revised upward.
For foreign investors, these changes mean that the annual cost of maintaining a second home on the coast or an investment property in Tirana will become somewhat more expensive. That said, even after the increase, the tax burden in Albania will remain relatively moderate compared to many EU countries.
The key question for the market is how exactly the authorities will assess property values and how quickly the new system will be implemented in practice.
The Albanian real estate market remains one of the most dynamic in the Balkans. Growth in tourism, the development of coastal cities, and interest from foreigners are sustaining demand; however, the tax increase could gradually cool speculative purchases and widen the gap between residential housing and investment real estate.
https://t.me/relocationrs/3077
Rising housing and rent prices in Europe are increasingly limiting people’s access to adequate housing and increasing the risk of homelessness, according to the European Union Agency for Fundamental Rights (FRA)’s annual report, Fundamental Rights Report: Challenges and Achievements in 2025.
According to the FRA, between 2015 and 2024, home prices in the EU rose by an average of 53%, while rents increased by nearly 17%. The agency notes that the housing crisis is becoming not only an economic issue but also a human rights issue, as the right to adequate housing is becoming increasingly inaccessible to vulnerable groups.
“Rising costs are affecting many people and families, as more and more people cannot afford housing and are at risk of becoming homeless,” said FRA Director Sirpa Rautio.
According to an estimate by the European Federation of National Organizations Working with the Homeless (FEANTSA), cited by the FRA, there were nearly 1.3 million homeless people in the EU in 2025. The agency identifies young people, private-market renters, low-income families, migrants, refugees, and people already on the brink of social exclusion as particularly vulnerable.
The FRA notes that more than two-thirds of EU residents own their homes, yet among those with incomes below the at-risk-of-poverty threshold, fewer than half are homeowners. This exacerbates inequality: rising housing prices increase the wealth of property owners but worsen the situation for renters and those without access to mortgages.
The report covers all 27 EU countries, as well as three candidate countries or countries potentially linked to the European integration process—Serbia, Albania, and North Macedonia.
The housing crisis is becoming one of the key social challenges for Europe. Rising housing prices are already affecting not only the real estate market, but also demographics, labor mobility, social stability, and trust in public institutions.
According to The Serbian Economist, an unusual price paradox has emerged in the real estate market of neighboring Bulgaria: in Varna and Plovdiv, existing homes are rising sharply in price, while prices for new construction have fallen.
According to data from the National Statistical Institute of Bulgaria, in the fourth quarter of 2025, housing prices in the country rose by 12.6% compared to the same period the previous year. At the same time, compared to the third quarter, growth has nearly stalled, amounting to just 0.3%.
The main imbalance is evident between new construction and the secondary market. Nationwide, existing housing rose in price by 15% year-over-year, while new construction rose by 9%.
In Varna, the gap was particularly pronounced: the overall price index rose by 15.1%, but new construction fell in price by 1%, while existing housing rose in price by 23.4%. In Plovdiv, the overall increase was 8.6%, new construction fell by 0.8%, and the secondary market rose by 16.8%.
The reason for this paradox is a shortage of move-in ready apartments. Buyers who need housing immediately are turning more actively to the secondary market. Against the backdrop of limited supply, this is driving up prices for ready-to-move-in apartments. New construction, on the other hand, faces more cautious demand, uncertainty regarding completion dates, and project-related risks.
A similar but less pronounced gap is also evident in other cities. In Sofia, secondary housing prices rose by 14%, while new construction prices rose by 11.3%. In Burgas, secondary housing prices rose by 17.6%, while new construction prices rose by 7.3%. In Stara Zagora, secondary housing prices rose by 23.3%, while new construction prices rose by 10.5%.
For investors and buyers, this is an important signal: the Bulgarian market is not falling, but is becoming more selective. Buyers are willing to pay a premium for a finished apartment in a good location, but are now more cautious about properties under construction.
For the market, this signifies a transition from frenzied growth to a more subdued phase.
https://t.me/relocationrs/3023
According to Serbian Economist, Montenegro’s housing stock is growing rapidly, but its population is not. According to UNECE data, the 2023 census recorded 392,900 residential properties in the country—78,200 more than in 2011.
Over the past 12 years, the number of apartments and houses has increased by approximately 26%, while the population has remained unchanged at around 624,000 people.
As a result, there are now 627 apartments and houses per 1,000 residents in Montenegro. This is approximately 21% higher than the EU average.
The main problem is that only 54% of housing is used for permanent residence. About 46% of properties stand vacant or are used seasonally, as vacation homes or for tourist rentals.
On the coast, this is linked to tourism, foreign buyers, and short-term rentals. In the north of the country, the reason is different—population outflow and depopulation.
A telling example is Žabljak: there, the number of homes has increased by more than 30%, even though the population has shrunk by about 18%.
For Montenegro, this is becoming a structural problem. Real estate and tourism generate quick profits, but they do not solve the issue of affordable housing for local residents. In Budva, Kotor, Tivat, and Bar, there is formally plenty of housing, but living there permanently is becoming increasingly expensive.
The main conclusion: Montenegro is facing the paradox of the tourism economy—the number of apartments and houses is increasing, while affordable housing for permanent residents may be decreasing.
According to the think tank Experts Club, Kyiv ranked 36th out of 37 European cities in the Global Property Guide’s housing cost ranking, according to data from the updated “Square Meter Prices in European Cities” table for April 2026, published on the study’s website.
The average housing cost in the Ukrainian capital is estimated at €1,970 per square meter. Over the past year, the figure has risen by 2.6%, and over two years—by 0.9%.
In the ranking, Kyiv emerged as one of the most affordable markets in Europe. Only Chisinau ranks lower than the Ukrainian capital in the table, where the average price of apartments is 1,720 euros per square meter. At the same time, Kyiv is cheaper not only than Western European capitals but also than most cities in Central and Southeastern Europe.
For comparison, in Belgrade the average price of new properties is 3,333 thousand euros per square meter, in Podgorica—2,141 thousand euros, in Bucharest—2,250 thousand euros, in Sofia—€2,300, in Athens—€2,500, in Budapest—€3,061, and in Zagreb—€3,781
Kyiv’s low ranking in the European table reflects the war’s impact on the real estate market, investment risks, limited external demand, and buyer caution. Unlike many European capitals, where prices are supported by mortgages, migration, and stable investment demand, the Ukrainian market remains dependent on security, macroeconomics, and the recovery of business activity.
At the same time, positive annual dynamics indicate that the Kyiv market is not in a state of sharp decline. Year-over-year growth of 2.6% indicates the presence of domestic demand, particularly in the segments of completed housing, high-quality properties, and locations with developed infrastructure.
Kyiv remains Ukraine’s largest real estate market and the country’s main hub of business activity. It accounts for a significant portion of the demand for residential, office, retail, and rental properties. Once the active phase of the war ends, the capital could become one of the key hubs for the recovery of investment activity.
For now, Kyiv remains one of the most affordable major European cities in terms of housing costs in euros. For potential investors, this may mean a low entry threshold, but at the same time, a high level of country, military, and regulatory risk.
The Global Property Guide study is available at: https://www.globalpropertyguide.com/europe/square-meter-prices
