Bratislava’s new apartment market sees surge in sales amid stable prices and VAT changes
In 2024, the Bratislava market for new residential buildings experienced a major shift. Apartment sales more than doubled compared to 2023, despite average prices remaining stable. Reduced supply and increasing demand for affordable housing were key market drivers throughout the year. Toward the end of 2024, the anticipation of a VAT increase significantly influenced buyer behavior, prompting a surge in transactions.
The real estate market saw steady prices alongside a surge in sales activity. After a slowdown in the fall of 2022, the market for new apartments recovered more favorably than older properties. According to Vladimír Kubrický, an analyst at the Real Estate Union of the Slovak Republic, a fundamental improvement occurred last year. The average price of new apartments in Bratislava remained at €5,013 per square meter, including VAT. Despite price stability, apartment sales rose dramatically. Analysts at Bencont Investments reported that 1,664 apartments were sold in 2024, more than double the 773 units sold in 2023.
The strong performance in the fourth quarter of 2024 was largely driven by the impending increase in VAT, which encouraged buyers to finalize transactions and secure lower prices. Many buyers, particularly those investing in higher-end properties, were motivated by the potential for savings amounting to thousands of euros. “The sales surge in the last quarter of 2024 was influenced by exceptional external factors, which could lead to a temporary correction in early 2025 before the market resumes its growth trajectory,” said Rudolf Bruchánik, chief analyst at Bencont Investments.
The legislative changes that increased VAT rates to 23 percent from 2025 played a crucial role in boosting sales. Buyers rushed to take advantage of the lower tax rate, resulting in a flurry of transactions, with many deals being finalized through advance payments. Developers benefited significantly from this trend, particularly in the latter half of the year. Earlier in 2024, developers had offered incentives such as free parking spaces and kitchen installations to attract buyers. However, by the final quarter, demand was strong enough that such incentives were no longer necessary.
The supply of new apartments fell throughout the year, with only 3,353 units available by the end of 2024, spread across 96 projects. The rapid increase in sales led to a shift in the supply structure, reducing the share of completed apartments on the market. Finished apartments, which made up 43 percent of available stock in mid-2024, dropped to 37.5 percent by year’s end.
Looking ahead to 2025, analysts expect the new VAT rate to push prices higher. However, they also anticipate that increased sales will be met with a stable influx of new projects, keeping prices relatively steady. Smaller, more affordable apartments continued to dominate the market, with the average apartment size increasing to 65 square meters. The demand for compact and budget-friendly housing contributed to a slight decrease in average prices.
Two-room apartments remained the most sought-after, accounting for 44 percent of all units sold in 2024. The highest demand was recorded in Bratislava’s districts II and IV, which together accounted for 58 percent of total sales. These areas offered more budget-friendly housing options, attracting a broader range of buyers. The post-pandemic reduction in interest rates further fueled demand, making homeownership more accessible compared to rising rental costs.
Despite the robust sales figures, market experts caution that challenges lie ahead in 2025. Inflation, legislative changes, and fluctuations in demand and supply could all impact market dynamics. While developers are expected to introduce new projects to meet demand, the overall market trajectory will depend on macroeconomic conditions and buyer sentiment.
Interest rate policies by the European Central Bank (ECB) will play a crucial role in shaping market conditions. If economic growth slows down, further rate cuts could provide relief to prospective homebuyers. However, experts such as Matej Dobiš, executive director at Zlatý Kompas, warn that the market may face short-term disruptions due to ongoing administrative challenges, such as inefficiencies in the land registry system.
Overall, the Bratislava residential market in 2024 showed promising signs of recovery and stability. Buyers increasingly preferred home purchases over long-term rentals, viewing ownership as a better financial decision. This trend is expected to continue into 2025, supported by favorable mortgage rates and ongoing price appreciation.
Source: Trend.sk, CBRE and HERRYS
