Real housing prices in Bulgaria up by 106% in a decade

Emerging markets saw the biggest increases in house prices over the past decade, the Lloyds TSB International Global Housing Market Review reports.

According to the report Bulgaria ranks sixth in the world in terms of increase in housing prices for the period 2001-2011. The ranking shows that prices of residential properties in Bulgaria have gone up by 106% for the period between the third quarter of 2001 and the third quarter of 2011. The change in prices is expressed in real terms, i.e. by taking into consideration the consumer price inflation for the period.

Bulgaria is one of the six countries that have recorded price increases over the past decade that is more than double the rise in the UK, which ranks 13th. The increase in Bulgaria is almost five times as big as that in the Eurozone, which reports an increase of 23% of housing prices for the decade.

Lloyd’s review shows that the emerging markets have reported the biggest increase in prices in the last 10 years. Emerging economies accounted for four of the six top performing housing markets since 2001, including the three countries with the biggest rises.

India tops the ranking having increased by 284% in real terms (i.e. after allowing for consumer price inflation) since 2001. It is followed by Russia, South Africa and Lithuania, where housing prices increased by 209%, 161% and 143% respectively. Overall, house prices across the 32 countries tracked have risen by an average of 56% in real terms over the past decade.

House prices have typically risen fastest in those countries with the fastest growing economies.

However, the largest economies are among the biggest fallers. Since 2001, half of the six countries that recorded a fall in house prices over the past decade – Japan, Germany and United States – are members of the G8, the world's eight largest economies. Japan recorded the biggest fall in house prices (-30%), followed by Ireland (-23%) and Germany (-17%).

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