The real estate market in Slovakia continues to stagnate. (source: SME Archive)
Slovakia's real estate market continues to stagnate, according to a new survey.
Data for the third quarter of 2023 from Bencont Investments shows sales of apartments in new buildings in Bratislava at a minimum, with purchases being made by clients using their own funds to buy rather than relying primarily on a mortgage.
No more than 200 apartments
There are currently 3,233 apartments for sale in 80 projects in Bratislava. It is a small number given the size of Bratislava.
"The low offer is mainly the result of the lengthy permitting process and the outdated spatial development plan of Bratislava, where the land suitable for residential construction has decreased significantly," said Bencont Investments analyst Rudolf Bruchánik said.
During the third quarter of this year, only 176 apartments in new buildings were sold in the capital. This is a 70 percent fall on the same period in 2021 in which 642 apartments were sold.
No more than 200 apartments in new buildings have been sold in any quarter this year so far. Experts say this is due to difficult mortgage financing conditions and high interest rates.
Meanwhile, before summer the average price of apartments exceeded €5,000 per square metre for the first time, but this rose further in the third quarter, increasing 4.3 percent to €5,110 per square metre.
The increase was down to more luxurious apartments coming onto the market. The average absolute price of apartments increased by 7 percent year-on-year to €322,000.
Free parking space and custom kitchen
In addition, the prices of new apartments are not falling as developers take into account higher construction costs during 2021 and 2022.
Of the total sales, two-room apartments accounted for 36 percent. Three-room apartments made up 31 percent, one-room apartments had an 18 percent share, and four-room apartments accounted for 11 percent.
Developers stopped new projects last year and are offering various deals on apartments they are still finishing, such as free parking spaces, custom kitchens, and more.
