Current Trends in the Slovak Real Estate Market

Current Trends in the Slovak Real Estate Market

Published at: 2019-11-18 11:19 | Author: Svoboda & Williams
In many ways, the Slovak real estate market shares similar characteristics with the Czech one: property prices are rising (especially in the capital city and its immediate area), interest rates are falling, and the demand for housing is higher than the supply available. These trends are not projected to change in the near future, making Slovakia a very interesting country from an investment perspective.

Analysts have been pointing out that interest rates have hit bottom and that we must expect them to rebound, but the opposite is true—the average mortgage interest rate in the Czech Republic and Slovakia is still decreasing. Banks in both markets are trying to make up for the collapse of the mortgage market. For example, the Slovenská spořitelna bank currently offers mortgages with a 0.79% interest rate (the average interest rate in the Czech Republic is 2.47%). However, with rising housing prices there is less interest in mortgages: in the second quarter, Slovak properties showed a year-on-year increase of 8.3%. The fastest rising prices are for older properties, and potential buyers will pay 5% more for new properties than in 2018. Real estate prices in Bratislava are three times higher than in other regions; in the popular district of Bratislava II – Ružinov they are even increasing by 12% annually.

Investors who are thinking about placing part of their capital in the Slovak real estate market will appreciate the fact that there are no restrictions for foreign clients in this area, except in the acquisition of farmland. What’s more, the increase in property prices is not expected to slow down. In fact, real estate costs are rising exponentially, which is reflected in the prices of new residential projects. The Slovak market also has many advantages over its Czech counterpart. For one, Slovakia doesn’t have a real estate acquisition tax, which means that, compared to the Czech Republic, properties are 4% cheaper. Slovakia is also part of the eurozone, and so investors can have confidence in a stable currency, while avoiding exchange rate risk and currency conversion fees, which are around 1%. Another benefit is Bratislava’s strategic location on the border of Austria and Hungary and close to the Czech Republic.

Similar Stories:

Svoboda & Williams to Exclusively Broker the Sale of Houses in the Na Pramenech Residential Project
The Svoboda & Williams real estate agency will exclusively broker the sale of family h  »
New resi building opens at Vrtovi Riverine complex in Sarajevo
Vila Mak, part of the Vrtovi Riverine residential complex, has opened in Sarajevo’s Ilid  »
Robyg to build micro-apartments in Wola district
Robyg is planning to build micro-apartments in its City Sfera residential project in Warsa  »
Unibep to build second stage of YIT’s Nordic Sadyba in Warsaw
YIT Development has tapped Unibep to build the second phase of its Nordic Sadyba residenti  »
Where do you see your company going over the next two years? Since I became GM of the co   »
Construction has begun on Bispevika, a brownfield project along Oslo’s waterfront that   »
PSN has sold 350,000 sqm of land to the dominant Czech residential developer Central Group   »
Investors from China, Russia and other countries are leading a growing influx of foreign f   »