Residential Real Estate Leases - Bulgaria

In Bulgaria, the projected revenue of the Residential Real Estate Leases market market is expected to reach US$3.91bn in 2024.
Apartment Leases dominate this market segment, with a projected market volume of US$2.18bn in the same year.
The annual growth rate is estimated to be 7.07% (CAGR 2024-2029), which will result in a market volume of US$5.50bn by 2029.
Despite economic growth and increased demand, the residential real estate lease market in Bulgaria continues to face challenges due to the high number of vacant properties.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Bulgaria has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the Residential Real Estate Leases market in Bulgaria is the changing preferences of customers. More and more people are opting to rent rather than buy properties, as it provides them with greater flexibility and less financial commitment. Additionally, the younger generation, in particular, is more inclined to rent as they prioritize mobility and the ability to live in urban areas close to their workplaces and social amenities.

Trends in the market: The increasing demand for rental properties has led to a rise in the number of real estate developers and investors focusing on the residential rental market. This has resulted in a greater supply of rental properties, offering a wide range of options to potential tenants. The market has become more competitive, with landlords offering attractive amenities and services to attract tenants. This includes furnished apartments, access to communal facilities such as gyms and swimming pools, and the inclusion of utility bills in the rental price.

Local special circumstances: Bulgaria's growing popularity as a tourist destination has also contributed to the growth of the Residential Real Estate Leases market. Many property owners are choosing to rent out their homes or apartments to tourists during peak seasons, creating additional rental opportunities. This trend has been further accelerated by the rise of online platforms that connect property owners with potential tenants, making it easier for both parties to find suitable rental properties.

Underlying macroeconomic factors: Several macroeconomic factors have also played a role in the development of the Residential Real Estate Leases market in Bulgaria. The country's stable economic growth, low cost of living, and relatively low property prices compared to other European countries have made it an attractive destination for investors. Additionally, favorable government policies and incentives have encouraged both local and foreign investment in the real estate sector. These factors have created a conducive environment for the growth of the Residential Real Estate Leases market in Bulgaria.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Bulgaria

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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