In 2023, the national housing price index increased by 6.77% (adjusted for inflation by only 1.4%). These are the data of the Statistical Office of the Republic of Slovenia. In 2022, this figure increased by 11.59%, and in 2021 by 15.77%.
Housing prices in the 4th quarter of last year rose by 2.39% compared to the 3rd quarter (2.8% adjusted for inflation).
In Ljubljana, the country's capital, the secondary market price index increased by 4.77% year-on-year (but decreased by 0.5% in real terms). On a quarterly basis, prices increased by 3.77% (4.19% adjusted for inflation).In Maribor, Slovenia's second largest city, prices for ready-made apartments increased by 8.38% last year compared to a year earlier (2.93% adjusted for inflation). On a quarterly basis, prices rose by 2.92% (by 3.34% adjusted for inflation).In the rest of the country, non-residential real estate prices increased by 5.06% during 2023 (fell by 0.23% adjusted for inflation). On a quarterly basis, the price index rose by a modest 3.1% (3.52% adjusted for inflation).
After a boom in the early 2000s, the Slovenian real estate market weakened in 2008 due to the global economic crisis. The following years were difficult. House prices fell every year until 2014, at least in real terms. They began to recover in 2015 and have been on an upward trend ever since, which continued even during the pandemic in 2020 and 2021. However, there are signs that housing market growth is slowing today due to falling demand.
According to the Statistical Office, in 2023, the total number of housing transactions fell sharply by 24% compared to a year earlier, to 9,786 units. Moreover, the drop in the primary market was as much as 43%, and in the secondary market - 24%. In 2022, sales also fell (-7.6% year-on-year), and in 2021 they grew (+19.9%).
Like domestic demand, the demand from foreigners has weakened, despite the liberal rules of home ownership. Foreign citizens have been able to buy real estate in the country since February 2003 on a reciprocal basis. Slovenia became an EU member in 2004. EU citizens have the opportunity to purchase real estate in Slovenia without restrictions on the principle of reciprocity.
According to a study by the Global Property Guide, in February 2024, the yield on apartment rentals in Slovenia is moderate: an average of 4.45%. In the 1st quarter of this year, two-bedroom apartments in the center of Ljubljana cost an average of 490,000 euros. In the surrounding areas, real estate is usually cheaper: a similar 2+1 apartment is sold for about 299,500 euros.
In the center of Ljubljana, a one-bedroom apartment can be rented for about 1100 euros per month, and for a two-bedroom apartment for 2,350 euros. A larger apartment, with three bedrooms and more, is available for rent for at least 2,900 euros.
Source: Global Property Guide
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