Purchasing a new apartment in Slovakia requires an average of 14 gross annual salaries. (source: SME Archive)
Slovakia is facing significant challenges in housing affordability, with the country now ranked as the least accessible for housing in Europe. According to a study by consultancy firm Deloitte, cited by Denník N, it takes an average of 14 gross annual salaries for a Slovak to purchase a new 70-square-metre flat. This was the highest relative price among 27 surveyed countries.
Bratislava, the capital city, has emerged as one of the toughest cities for housing access, surpassing even Prague. The Slovak capital ranks second in housing access challenges after Amsterdam. Despite the ranking, Amsterdam's prices are almost double Bratislava's, and disparities between the capitals and other cities are larger.
This situation highlights the mismatch between income levels and housing prices, where even though the availability of housing has increased, the struggle for affordability persists.
Construction slump affects affordability
The issue of housing affordability is further compounded by a slowdown in apartment construction. Slovakia's construction sector has seen a decline in activity, with only 3.8 flats being built in 2022 per thousand people, down from 4.5 in the previous year.
This is attributed not only to permitting delays but also to developer concerns about oversupply depressing property prices. While there has been some progress in increasing the number of flats, the market still falls short of demand.
As the housing market contends with these challenges, potential homeowners are left waiting for lower interest rates – or lower price. Sellers, meanwhile are hoping that price will hold up.
The number of completed dwellings in Slovakia increased by double digits year-on-year, but the start of construction continued to slow down. (source: Statistics Office)
