Residential real estate prices in the Republic of Slovakia continue to fall, albeit at a much slower pace, amid a recovery in demand and a continued decline in housing construction activity.Before last year's decline, the country saw an eight-year increase in housing prices, which lasted from 2015 to 2022.
In the 2nd quarter of 2024, according to the data of the National Bank of Slovakia (NBS), average prices for apartments and houses in the country decreased by 1.28% year-on-year (-3.3 adjusted for inflation) to 2,462 euros. This is already better than last year's figures: -8.57% in the 4th quarter of 2023, -10.17% in the 3rd quarter and -6.63% in the 2nd quarter.
Another positive sign is a small quarterly growth of 1.61% (0.96% in real terms). This is the first rise after falling for the previous six consecutive quarters.
The previous housing boom in Slovakia lasted from 2006 to the second quarter of 2008.The price increase stopped at the end of 2008, and in subsequent years prices either fell or only increased slightly.House price growth started accelerating again in 2016 and continued until last year.
In 2023, prices for apartments and houses fell by almost 9% (-14% in real terms) amid weak demand for real estate and a slowing economy.
"The real estate market in Slovakia, like in other countries, was influenced by several factors last year.This time, he was influenced not only by the military actions in Ukraine, but also by the associated high energy prices, inflation and a significant increase in interest rates," CBRE consulting company said.
In Slovakia as a whole, the average rental yield in the 2nd quarter of 2024 was 5.29%, unchanged from last year, analysts calculated the Global Property Guide.
In the Old Town, the historical center of Bratislava, the rental yield of two-bedroom apartments averaged 4.17%.
In less prestigious areas of the capital, such as Ruzhinov, Nove Mesto and Petrzalka (Bratislava II, III and V), the yield on renting two-bedroom apartments was approximately the same - from 4.41% to 4.67%. The Airbnb market is booming.
Source: Global Property Guide
