Housing construction in Slovakia remained depressed in the second quarter of 2025. The number of completed flats was the lowest for any second quarter in the past eight years, falling 9 percent short of the long-term average.
The figures come from the latest report by the Statistics Office.
The negative balance was driven mainly by a sharp decline in completions in the Bratislava Region, where fewer than 440 flats were finished – the lowest figure in 22 years.
“The pace of new construction has also slowed, with 23 percent fewer flats started compared with the long-term average,” said Statistics Office spokesperson Jana Morháčová.
In total, 3,717 flats were completed across Slovakia in the second quarter, a year-on-year fall of 14.8 percent. Detached houses accounted for the majority – as much as 72 percent of all completions.
Sharp decline in the Bratislava Region
Regional developments were varied and dynamic. “In five of Slovakia’s eight regions, the number of completed flats fell year on year. By contrast, completions rose in three regions, though significantly only in Nitra,” Morháčová added.
Changes ranged from a 61 percent drop in the Bratislava Region to a 41 percent increase in Nitra.
In most regions, completions were below the long-term average, with five of the eight regions affected.
“A marked 22 percent decline was recorded in the Košice Region, while Bratislava saw an almost 60 percent slump,” the spokesperson noted.
The capital region therefore lost its long-standing position as the leader in housing completions. Only 434 flats were finished there in Q2, compared with more than 1,000 in the same period of previous years.
During the second quarter of 2025, 4,043 flats were started nationwide – the lowest figure for any second quarter in five years. The number of housing starts fell 12.5 percent year on year and nearly 23 percent compared with the long-term average.
Detached houses made up 60 percent of the new builds. While nearly 900 flats were started in Bratislava, the range in other regions was between 220 and 570.
The slowdown in construction, which has persisted for several years, is, according to Slovenská sporiteľňa analyst Marián Kočiš, the result of rising prices of construction materials and labour.
Developers remain cautious
The regional picture was negative even in longer-term context. “Compared with the long-term average, housing starts slowed in six regions, all of which saw double-digit declines,” Morháčová noted.
The sharpest falls, ranging from 31 to 46 percent, were observed in Nitra, Žilina, Košice and Trnava. Bratislava continues to top the rankings for new housing starts, but current levels are 19 percent below the long-term average.
At the end of June, more than 77,000 housing units were under construction in Slovakia – 2.8 percent fewer than a year earlier, but still 1.7 percent above the long-term average.
In the first half of 2025, 6,836 flats were completed – down more than 19 percent year on year and 17 percent below the long-term average. Over the same period, 7,241 new flats were started, a drop of 14.5 percent year on year and nearly 25 percent below the long-term trend.
“Residential construction remains in decline, and the second quarter confirmed that developers are adopting a cautious approach to new projects,” said Tomáš Boháček, analyst at 365.bank. “Bratislava has lost its leading position, and the regions cannot make up the deficit.”
He added that new projects are being held back by an uncertain economic outlook and concerns over the purchasing power of households and investors.
According to the National Bank of Slovakia, construction companies stated that in recent years they were most constrained first by a shortage of materials and later by a lack of labour. But since last year, weak demand for new buildings has become an increasingly pressing problem.
Another factor, according to Boháček, is anticipation of a new building law, which will not show up in production data for another one to two years.
“On the other hand, the current construction trend will soon limit the supply of new flats, while demand remains strong. This suggests that pressure on housing prices will not ease – it will instead intensify,” he said.
Average mortgage rates for loans fixed for one to five years hovered just above 3 percent in the second quarter of 2025 – a level Boháček said was already strong enough to motivate households to take on new loans, further depleting housing supply.
Pressure on prices
According to Wood & Company analyst Eva Sádovská, several ratios will be worth watching this year.
“The number of completed flats per thousand inhabitants shows how effectively a region is responding to housing demand and what its real construction performance is,” she explained. “It allows comparisons across regions and reflects the pace of housing development.”
While there are no precise EU or global benchmarks, she said values above 5 signal more intensive construction activity typical of urban or economically strong areas. Until 2024, Bratislava and Trnava reached such levels.
By contrast, ratios below 2.5 may lead to housing shortages and stagnation. In 2024, Banská Bystrica and Košice fell into this category, with their ratios hovering around 2 in the longer term.
The construction activity index – the ratio of flats under construction to completions – provides additional context, capturing projects at various stages. A value above 1 indicates high activity and an expectation of future supply. In Slovakia, this index has long remained above that threshold.
In August, both the National Bank of Slovakia (NBS) and the Statistics Office published Q2 housing price data. The NBS reported a 12.8 percent year-on-year increase in asking prices, while the Statistics Office measured an 11.3 percent rise in realised prices.
“In both cases, the rise is significant and spread across the entire country,” Sádovská said.
The price increases, she explained, are being driven by several factors: demand outstripping supply, lower interest rates since late 2024, a revival of the mortgage market, growth in real wages and relatively low unemployment.
She added that psychology also plays a role: “Many households expect further price rises, which motivates them not to delay buying, but to act quickly.”
Local conditions and regional differences also remain a key influence on price developments.
