Bratislava. (source: SME - Marko Erd)
The new school year has caused a record demand for rental housing in Bratislava.
The limited availability of mortgages and ongoing renovations of dormitories in Bratislava have caused the demand for rental housing to skyrocket, reaching a new record and causing prices to significantly grow. This follows from a report by the real estate company RE/MAX Slovensko.
"Despite slight adjustments in interest rates, owning a housing remains unattainable for many people," says the company, as quoted by SITA newswire.
This means that there is interest even in flats located on higher floors, in unsatisfactory condition, without air conditioning, or with some other deficiency," explained the owner of the RE/MAX Vista real estate agency, Ján Hámorský. The reason, according to him, is that mortgages are still difficult to obtain. The demand was multiplied by the renovations of dormitories.
More tenants from eastern Europe
Since many dormitories in Bratislava are undergoing extensive renovations, students have put a significant pressure on the market. Since they lack affordable housing, they are pushed into private rentals, which further increases demand and prices alongside it.
According to the report, the tenant structure in Bratislava has changed as well, with more tenants primarily from Ukraine, Russia and Belarus. On the contrary, there are very few tenants from European Union countries.
For property owners, the current situation represents an opportunity for higher earnings; on the other hand, tenants must make quick decisions and accept higher housing costs.
In 2022, the average price per square metre was €13.02 in one-room flats, €10.82 in two-room flats and €10 in three-room flats. In 2023, prices rose to €14.01, €11.84 and €10.75, respectively.
"This year, prices have risen even more; on average one square metre in a one-room flat costs €15.45, in a two-room flat €12.75, and in a three-room flat €11.22," the company says.
Higher rental prices for flats across Slovakia
As shown by an analysis from the consultancy firm Deloitte, the average rental price for a flat in Slovakia in the second quarter of 2024 was approximately €712 a month. Rental prices for flats in Slovakia vary significantly by region. The lowest price in the second quarter of this year was recorded in Banská Bystrica, where rent averaged €520 a month. At the opposite end of the spectrum is Bratislava, which remains the most expensive, with an average monthly rent of €896.
A year-on-year comparison revealed a significant increase in rental prices for flats in Slovakia, with the average price rising by 7.8 percent in the second quarter of 2024 compared to the same period last year. This trend was most pronounced in Žilina, where prices surged by 19.4 percent. Bratislava followed, with rents increasing by 11.1 percent year-on-year, and Košice with a rise of 7.9 percent.
