Slovak house prices surge in late 2024, major cities reach record highs

The Slovak property market experienced a significant upswing at the end of 2024, with apartment prices soaring to record highs, particularly in Bratislava, Košice, and Žilina. Data from the Market Reports application of real estate portal Real Estate.sk confirms that prices in many cities surpassed pre-crisis levels, driven by stabilizing mortgage conditions and strong demand.

The mortgage market has adjusted to higher interest rates, with rates gradually declining and buyers becoming accustomed to the new borrowing environment. Meanwhile, real estate prices have been influenced by new developments in some areas, while in others, a lack of available apartments has driven prices higher.

The trend of rising apartment prices was visible across all regions and property segments, with most cities recording year-on-year increases of over 10%. Smaller apartments saw the sharpest growth, particularly in Košice I (+18.06%), Košice II (+16.54%), Košice III (+20%), Banská Bystrica (+15.79%), and Žilina (+14.79%).

According to Michal Pružinský, an analyst at Nehnuteľnosti.sk, the Košice boroughs experienced rapid price growth due to limited housing supply and subdued new construction. With fewer new apartments entering the market, buyers are forced to compete for existing listings, driving up prices.

In contrast, Žilina’s price growth has been fueled by an active new construction market, where developers are bringing modern apartments to the market, pushing overall price levels higher. Smaller apartments in Žilina increased nearly 15% year-on-year, while three-bedroom apartments surged by almost 22%.

Bratislava and Košice Lead in Large Apartment Price Growth

Among larger apartments, three-bedroom units saw the most surprising price jumps at the end of 2024. Bratislava’s Old Town led the way, with a quarterly increase of 11.11%, fueled by the completion of luxury developments. Prices in the city center remain among the highest in Slovakia, reflecting ongoing demand for prime properties.

Other significant year-on-year gains were recorded in Košice I (+28.82%) and Žilina (+21.69%), marking the strongest growth rates in the country. Double-digit increases were also observed across other districts of Bratislava and Košice, reinforcing the trend of rising demand.

Tax Hike Spurs Last-Minute Buying Rush

The strong end-of-year demand for new development projects was largely driven by the January 2025 VAT increase from 20% to 23%. Buyers rushed to secure pre-tax hike prices, fearing that developers would pass on the higher tax burden in future pricing.

“The increased interest in development projects at the end of 2024 confirmed our forecasts. Many buyers acted quickly to purchase apartments before VAT changes took effect,” explained Pružinský.

As 2025 begins, the Slovak real estate market is entering the new year with strong momentum, with record-high property values in major cities and continued demand across key urban centers.

Source: SITA