Slovakia: features of the local real estate market

After the collapse of Czechoslovakia and the creation of two independent states in 1993, Slovakia remained in the shadows for some time - the Czech Republic was more often chosen both for vacations and as a possible country for emigration. However, the economic growth and favorable conditions allowed Slovakia to find a considerable number of tourists and foreign residents who moved here for permanent residence.

Sometimes real estate is purchased only for recreation or to have a "alternate airfield" for the future. To achieve this goal, you can come to the country on a regular Schengen visa, with which you can stay in the countries of the agreement for no more than 90 days. In order to increase this period, it is necessary to obtain a residence permit - this procedure is much easier here than in other EU countries - a permit is issued either when buying real estate, or when establishing an individual business or a company.

Real estate prices

The stability of the local economy affects the stability of housing prices: it does not get cheaper, as in some countries, but systematically rises in price. In recent years, Slovakia has been among the leaders of the European Union in terms of annual economic growth with an indicator from 1.5% to 2.4%, thanks to which the country has become attractive for investment in real estate from foreign buyers, both wealthy and not very rich.

Real estate prices in Slovakia have increased their growth rate over the past couple of years: if in the first quarter of 2017 the average price in Slovakia was 1,350 euros per sq. M, then in 2019 this figure reached 1,560 euros per sq. year the cost of housing increased by 16%. True, in the second quarter of this year, growth slowed down a bit, but the National Bank of Slovakia assumes that prices will continue to increase, but more moderately. Now the highest prices are recorded in the Bratislava region - 2072 euros per sq.m. It is followed by the Trencin region - 1146 euros per sq.m., the Zhilinsky region - 1099 euros per sq.m. and the Kosice region - 1046 euros per sq.m.

The biggest jump in real estate prices was noted in Bratislava, where the cost of housing in one year increased by 8-12%. Studios (in Slovak garsonka), one-room apartments (2071 euros per sq.m) and two-room apartments (1934 euros per sq.m) have risen most rapidly. The rise in the cost of large multi-room expensive apartments was slow. Despite the fact that at the moment the difference in the increase in real estate prices and wages in Slovakia is 23%, however, this does not reduce the desire of Slovaks to buy housing for themselves, in addition, the process is helped by low mortgage rates - about 1% in all banks.

Pros of buying a home in Slovakia

Bratislava and its suburbs, Kosice, Poprad are the most popular cities for purchasing real estate in Slovakia. Shamorin is gaining more and more popularity, where one of the most demanded development projects is now being implemented, which is based on the border with Austria, thanks to which this has become a determining factor for many buyers. Bratislava will also be interesting for those who want to concentrate their business in Austria, buying a home in Poprad will be beneficial for those who do business in Poland. Located just an hour's drive from the Ukrainian border, Kosice is also recognized as the metallurgical and logistics center of Slovakia.

There are many international students studying in the capital Bratislava today, as well as the headquarters of international companies: Amazon, IBM, Booking.com and UBER, thanks to which many expats live in the capital of Slovakia. Also, many Italians and Spaniards live in Bratislava, Austrians (due to high prices in Vienna) and Russians often move to the city - as you know, the level of local market prices is much lower than Moscow. Now, in the vicinity of Bratislava, within a radius of up to 100 km, you can buy a small 1-2-room apartment worth up to 50,000 euros. 3-4 room apartment and even a house in the suburbs of Bratislava can be purchased for up to 100,000 euros.

An unconditional plus of Slovakia is also that when buying real estate there is no need to confirm the financial origin of the funds, as is requested in other countries. It is also advantageous that the payment here takes place in euros (national currency) - the buyer does not lose on conversion, as is the case in the Czech Republic, Hungary or Poland.

House or apartment?

A lower price per square meter of a house than a square meter of an apartment is one of the factors stimulating Slovaks to buy and build houses. In addition, a house can be built or purchased exactly according to your ideas or dreams of housing, and an apartment built according to a standard in a multi-storey building is difficult to buy or remodel strictly "for yourself". And for the price of a one-room apartment in the center of Bratislava, you can buy a three-bedroom house in the suburbs of the capital, just half an hour's drive from the city center.

Slovakia itself is a small country: from south to north the distance along the highway is 400 km, and from west to east - 500 km. Therefore, from any locality in Slovakia, the regional center can be reached by car within one hour, and to international airports in Bratislava, Vienna or Budapest in 1-3 hours. Therefore, more and more Slovaks and foreigners choose to live in their own home outside the bustle of the city, surrounded by nature.

In modern conditions, individual housing is considered to be of high quality in Slovakia, when an apartment or house should be individual and not similar to housing in the neighborhood. If we are talking about a house, then it should have a plot of 400–800 square meters, which does not require a lot of work to take care of it. It is worth noting that Slovaks are in a hurry to get rid of living in socialist panel apartment buildings, preferring apartments in low-rise brick buildings. It is desirable that they are in closed residences, which have all the necessary services - shops, cafes, ateliers of various services, a kindergarten, sports clubs, a swimming pool, a fitness center, a recreation area. Most often, such objects appear on the outskirts of large cities in the bosom of nature.

Modern equipment (air conditioning, underfloor heating, jacuzzi, smart home, fireplace, furniture) is becoming the norm throughout the country, but it is important to remember that gas in Slovakia is expensive, therefore, in almost all new buildings, heating and hot water is provided by electricity.

Useful Tips

Unfortunately, about half of the Slovak real estate offered on the Internet refers to irrelevant or "unclean" objects - real estate is burdened with mortgages, rights to it of other persons and banks, utility debts or construction problems, etc. Such ads often do not describe details that might discourage buyers from buying. And some realtors take advantage of the fact that foreign buyers do not know the language, Slovak laws, construction and other norms. Therefore, it is best to pay a commission to a realtor after he helps not only to buy real estate, but also to conclude all the necessary contracts with the management company and utility providers. Also, when buying, you should definitely pay attention to the reputation of the developer.

Thank you for your help in preparing the material:

Oleg Kazankov, director of RUSKY SK sro Bratislava

Elena Marinichev, vice - president of Moscow Sotheby's International Realty