world

housing becomes cheaper, rents rise

In Sofia they are already 10% higher than last year, in Western Europe by 16.5%

Rents across Europe rose in the third quarter by an unprecedented 16.5% year-on-year. This is shown by data from the London-based company HAI (HousingAnywhere International), which summarizes offers in 400 cities, mainly in Europe.

Rent growth is particularly strong in Amsterdam (18.3%), Lisbon (10%) and Athens (14.3%), in most cities the trend is for rents to rise. Units are those in which Helsinki (-6.5%), Brussels (-4.4%) and Paris (-5.6%) are decreasing.

The company’s analysis shows that while in the second quarter, when there was also an increase in rents, the main reason was the recovery from the pandemic and the fact that many more people started to travel,

now the reasons are inflation

and energy prices,

which increase housing maintenance costs.

“Unprecedented energy prices, rising costs of living and continued rising rents are challenging household budgets. Governments are taking measures such as capping energy prices and stabilizing energy bills. The question is whether this will distract them from solving the structural lack of housing supply that is affecting rental prices in many European markets,” commented Jordi Seelman, CEO of HousingAnywhere.

The problem is that there are many more foreign students in Europe this year than last year, and the growing demand is driving up rents.

The other factor for their rise is the depreciation of the euro. This

turns eurozone countries into more

more attractive place

for non-EU people, which will further increase rents in the coming months.

However, their rise is taking place against the background of the already beginning housing prices.

On Thursday, two of the largest mortgage lenders in Great Britain – Nationwide Building Society and Halifax – reported that in September, October and November property prices in the country decreased. In November, their decrease on an annual basis was almost 10%. Except that

happens for the first time since the world

financial crisis here

it is also almost the same as then. Between 2008 and 2009, UK house prices fell by around 15%.

There are worries that the current slump is just the start of a long-term trend similar to what happened in 1989-1990, when UK properties lost a fifth of their value.

According to Nationwide Building Society chief executive Chris Rhodes, however, only his worst-case scenario involved a 30% drop in prices, with prices falling by between 8 and 10% more likely.

In Bulgaria, however, the situation with rents and prices is almost the opposite of what is happening in Western Europe.

In our country, the rents of the houses in the big cities

had collapsed by 25 to 30% in

the height of the pandemic

and they have been increasing ever since, reaching 2019 levels this summer.

According to “Yavlena” data, the growth in selling prices of homes in Sofia is currently 14-17% compared to a year earlier, while rents have risen for the same period by about ten percent.

According to “Adres” data, rents for Sofia alone are rising in the various districts of the capital by 5 to 10% compared to a year earlier.

According to the head of the National Real Estate Association, Dobromir Ganev, the forecast for the coming months is that rents in our country will also rise, but

hardly the rate of increase

theirs will be higher than 10-15%

Most likely, when the wave of sobering up in the sale of housing reaches Bulgaria and the prices start to hold and even fall, the rents will start to rise even more.

For now, however, no one can predict when this will happen, since the delay with which trends from Western Europe reach Bulgaria is often between half and a year.

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