Housing prices rise again in Slovakia, affordability continues to decline

Residential property prices in Slovakia rose for the third consecutive quarter at the end of 2024, with the pace of growth accelerating both quarter-on-quarter and year-on-year, according to the latest data from the Statistical Office of the Slovak Republic (SOSR). Prices increased by 3.6% from the previous quarter and reached nearly 8% higher than the same period a year earlier.

The data show that price increases were recorded in six of Slovakia’s eight regions, with the highest year-on-year growth observed in the Žilina and Košice regions, driven largely by the appreciation of existing properties. In the Nitra region, the year-end price growth remained in the double digits, continuing a trend seen in the previous quarter. Bratislava, the most active real estate market in the country, also saw a 4% rise in both new and existing property prices.

Meanwhile, minimal quarterly price declines were observed in the Trnava and Trenčín regions, due mainly to falling prices of existing homes. On a year-over-year basis, all regions saw rising prices, ranging from a 2.3% increase in Trnava to a 20.3% jump in Žilina. The national average for existing property prices rose by 8.4%, while new builds increased by 5.7%.

In a longer-term comparison, prices of residential real estate have nearly doubled since the base index was set 14 years ago. Existing home prices have increased by 111%, while new home prices have climbed by 66%.

While the real estate market continues to grow, concerns about housing affordability are mounting. Financial analyst Marián Búlik from OVB Allfinanz Slovakia warned that sustained price increases could make homeownership unattainable for a large segment of the population. He noted that, although mortgage interest rates could fall slightly—by approximately 0.4 percentage points for loans with three-year fixed terms—this would not be enough to offset the recent pace of price growth.

Búlik also pointed out that recent price increases were not solely due to a rush in new home purchases before the January VAT change, as prices for existing properties rose even faster. He added that efforts such as cooperative housing models or rental housing support, while helpful, are unlikely to significantly improve the overall availability of affordable housing, especially given the estimated shortage of more than 200,000 rental units in Slovakia.

Despite the worsening affordability, Slovaks remain interested in homeownership and home renovation. Interest in housing subsidies and energy-efficient renovations has grown significantly, suggesting that while prices may be rising, the demand for housing and investment in property remains strong.