War in Ukraine and Falling EU Demand Drive Bulgaria’s 2025 Export Decline
Bulgaria’s export sector continued to face challenges in 2025, marking the third consecutive year of decline
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A recent analysis from the European Institute of Trade Unions, highlighted by the European Confederation of Trade Unions, reveals that low-wage earners in most EU countries spend at least a third of their monthly income on rent. This data comes just before Dan Jørgensen’s hearing in the European Parliament, where he will be considered for the role of the EU's first housing commissioner. Jørgensen, if appointed, will be tasked with implementing an "affordable housing plan," a priority set out by European Commission President Ursula von der Leyen.
According to the analysis, workers on the minimum wage in 14 EU countries typically spend 35% or more of their income on renting a property with up to two bedrooms. In some cases, housing costs are even higher. For instance, in the Netherlands, Ireland, and Luxembourg, low-wage workers spend roughly half of their income on rent, while in eight other member states, rent absorbs 40% or more of their paychecks.
In Bulgaria, minimum wage earners spend an average of 45% of their income on rent. This figure is based on national averages, and actual rent costs may be even higher in cities where job opportunities are concentrated. The situation reflects a broader trend across the EU, where rental costs have surged by as much as 200% over recent years, according to Eurostat data. In response to these pressures, many Europeans have resorted to cutting back on essential spending, including food, to afford their rent or mortgage payments.
Property values in Sofia have surged by approximately €500 per square metre over the past year, according to data from one of Bulgaria’s largest real estate agencies. Across the country’s main cities, housing costs climbed by 20% in the final quarter of 2
Two-room dwellings make up the largest portion of newly built homes in Bulgaria, according to data for the fourth quarter of 2025.
In 2024, about 68% of households across the European Union were owner-occupied, a slight decline from 69% in 2023, according to Eurostat data. The remaining 32% of the EU population lived in rented homes, up from 31% the previous year.
Bulgaria is facing a sharp rise in construction material costs, which experts warn will drive property prices higher. Svetoslav Zhekov, chairman of the Chamber of Builders in Varna
As Bulgaria enters its first full year in the eurozone, the real estate market in Sofia begins 2026 with a shift from rapid, speculative growth to more stable, needs-driven demand.
Choosing between renting and buying a home is a decision that goes far beyond personal preference.
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