In Bulgaria, purchasing a 100 sq.m. apartment requires the equivalent of 199 monthly salaries, according to a recent study that compares real estate prices across 62 countries against average local wages. The report by BestBrokers.com identifies Denmark as the most affordable country in Europe for homebuyers relative to average income, where the average cost of a 100 sq.m. property is equivalent to 114 net salaries.

Despite being the most affordable for home purchases, Denmark is also noted as the most expensive country in the EU for 2023, with prices for goods and services 43% higher than the EU average, as reported by Eurostat. The country ranks seventh in Europe for average annual income. "Given the significant variations in prices and incomes across countries, the BestBrokers team sought to analyze the real estate market based on the number of monthly salaries needed to buy a home in different European nations," the report explained.

Ireland and Sweden follow Denmark in affordability, requiring 123 and 129 net salaries, respectively, to acquire a 100 sq.m. home, which equates to about 10 annual salaries. However, these figures are theoretical and do not account for other essential expenses, such as food, housing, and childcare.

At the lower end of the ranking are the Czech Republic and Slovakia, with the latter needing 297 times the average salary to purchase an average 100 sq.m. home, equating to nearly 25 years of income. If an individual saved half of their net salary, they would still take around 50 years to save enough for a family home.

Bulgaria sits in the middle of the rankings, requiring 199 net salaries or nearly 17 years to buy a property. In neighboring North Macedonia, the figure is 215 net wages; in Greece, it’s 228; and in Bosnia and Herzegovina, it stands at 255.

The study also examined real mortgage interest rates across Europe for the third quarter of 2024, using data on mortgage loans and projected inflation rates to determine the "real" costs for borrowers. The report indicates that Russia currently has the highest real mortgage interest rate, projected at 12.3% for the period from July to September 2024, following the end of its state-backed mortgage program.

Following Russia, Latvia and Poland also report high real mortgage rates at 6.65% and 5.1%, respectively. In contrast, Germany’s rate is at 1.85%, while the United Kingdom has an even lower rate of 1.77%. Other major European economies, such as France (1.13%), Italy (0.99%), and the Netherlands (0.96%), report rates around 1%.

Interestingly, negative real mortgage rates are found in Belgium (-0.52%) and Sweden (-1.21%), indicating that homebuyers in these countries might not pay interest on their mortgages; this suggests that real borrowing costs may be declining, according to the study.

Globally, South Africa is identified as the most affordable country relative to salaries, where residents need only 71 times the average salary to own a 100 sq.m. property. The United States ranks second, with homebuyers requiring 76 average monthly salaries, which is approximately six annual salaries. At the opposite end of the spectrum, Nepal demands 684 salaries for homeownership, followed closely by Turkey at 631 salaries, equivalent to 52.5 years of earnings.

Read the full report by BestBrokers.com.