Bulgaria raises the bar: the country has overtaken Hungary, Slovakia, Romania and Greece in purchasing power

The concept of the “purchasing power standard” (PPS) is often referred to as purchasing power parity, or PPP, and is used to compare the purchasing power of the currencies of different countries. It takes into account how many goods and services can be bought for a given amount, factoring in differences in prices and exchange rates. This is a more accurate method than simple nominal GDP or average wages when it comes to assessing “real life”.

The Bulgarian news agency BGNES reports that, according to the latest published data, the purchasing power standard in Bulgaria stands at approximately €13,079 per capita. 

Meanwhile:

• In Romania — approximately €13,023,
• In Greece — approximately €12,436,
• In Slovakia — approximately €11,433,
• In Hungary — approximately €11,999.

This means that Bulgaria has not only caught up with, but overtaken, some EU member states previously perceived as more developed.

Why this matters for the property market

For property buyers and investors, such data means the following:

• The “price/quality of life” ratio is becoming ever more favourable. If PPS in Bulgaria is higher than in a number of EU countries, that means for every euro invested you get more purchasing power. This makes buying property more advantageous, particularly when you factor in running costs and everyday living expenses.
• The rising indicator may influence demand. A higher PPS makes the country more attractive to live in, which strengthens demand for housing, especially from international buyers considering a “second home” or an investment.
• Property prices still remain comparatively low. Despite the growth, the average price per square metre in Bulgaria’s popular areas (for example, at the resorts) remains significantly below the European average. In other words, you gain access to “European living conditions” at a price on a par with countries of lower purchasing power.

Why Bulgaria was able to “overtake” the others

Several factors have played their part in this:

• Low cost of living and expenses. Bulgaria has traditionally offered lower prices for housing, services and utilities.
• Improved infrastructure and the growth of tourism, along with investment in resort areas, which have raised demand, increased the sale of properties and stimulated growth in prices and quality.
• European integration and access to finance, which increase the purchasing power of both residents and foreign investors.
• Stable macroeconomic indicators, which make the country more attractive for placing capital.

What conclusions can a property buyer draw

If you are considering property in Bulgaria, such indicators confirm that you are not simply buying “budget housing” but gaining access to a market with growing purchasing power and growth potential.

Comparison with Italy, Spain or other countries: in countries with higher PPS, the cost per square metre and running costs may well be higher. In Bulgaria, the combination of “affordable price + growing purchasing power” is becoming a strong argument.

Location matters: even within Bulgaria there are significant regional differences — resort areas, major cities and rural districts differ in price, infrastructure and liquidity. Any property research should include data on regional PPS, average prices per m² and running costs.

Investment outlook: as the country’s purchasing power grows, demand for housing will rise — from both local and foreign buyers. This creates an additional incentive to enter the market now, before prices rise significantly.

The purchasing power indicator reflects not so much the “currency” as “real life” in a country. The fact that Bulgaria has reached a level above some EU member states (such as Romania and Greece) is a serious signal. For investors and property buyers this means: Bulgaria is ceasing to be “merely a cheap option” and is becoming a country with an advantageous combination of price, quality and growth potential.