Prices for residential real estate in Slovakia continue to grow against the background of low interest rates on loans, a reduction in the volume of supply and a rise in the cost of building materials. The shortage of apartments and houses for sale is felt not only in Bratislava and its surroundings, but also in almost every major city in the country.
"Due to cheap mortgages and low unemployment, housing has become affordable for a large number of people, although prices have been growing at the fastest pace since 2008," comments Yulia Vincheova from the real estate agency and consulting JLL Slovakia. Rudolf Bruhanik, an analyst at the development company Bencont, clarifies that prices for new apartments in Bratislava have increased by 10-40% year-on-year, regardless of the locality or stage of construction. "Most of the apartments in existing projects are sold out, and sellers are more likely to raise prices for apartments that have not yet been sold than to sell them too quickly [at a lower price]," adds Bryukhanik.
During the pandemic, many companies allowed employees to perform their duties from home. This practice often continues even after the removal of quarantine measures. A hybrid model combining office work with remote work is becoming increasingly popular, which makes satellite areas around Bratislava attractive for buying a home. However, this trend has led to a decline in the rental market in Bratislava itself. The demand has been revived thanks to the citizens of Ukraine who are moving here because of the military operations in their country, said Vincheova.
According to the National Bank of Slovakia (NBS), the cost of real estate in the last quarter of 2021 increased by 22.1% year-on-year, to 2262 euros per sq. m. The fastest growth was recorded in the Presov and Bratislava regions.
"In 2020, we witnessed a decrease in the number of new buildings," NBS analyst Roman Vrbovsky notes. According to him, the new construction legislation, which will come into force in 2024, will improve the situation, but it will take some time for the market to feel the changes.
Source: Spectator