RESIDENTIAL property in Bratislava and its vicinity is the most attractive in which to invest for foreigners. Foreign citizens are interested in apartments, houses, and even recreational cottages.
The Irish, who see in Slovakia certain similarities with their country in that they experienced a great boom in real estate, are showing the greatest interest in Slovak properties. Individual investors from Great Britain, Spain, and Italy also are in the mix.
Michal Roth from Lexxus Classic told The Slovak Spectator: "It is mainly private investors into real estate-physical entities that buy property in various countries. We also cooperate with foreign companies that mediate such properties to a closed number of clients through so-called club investments. In this case it is mainly about new buildings in attractive locations."
After investors buy property, they rent it and expect a growth in its value over several years. It ensures them an advantageous sale of the property with a decent return.
That is why large-sized apartments in the city centre of Bratislava face the highest demand. The technology of construction sometimes matters, as well as location, accessibility (transportation), facilities, and other aspects.
According to Roth, some investors focus exclusively on new buildings and within that range only on the smallest and most affordable apartments. "The reason is that those apartments guarantee unproblematic rental and sale."
Staré mesto (The Old Town), Palisády, Bôrik, Horský Park, Slavín, Koliba, Kramáre, Ružinov, and Nové mesto in Bratislava are the most attractive locations. Petržalka (right bank of the Danube River in Bratislava) also has great potential due to fast transportation connection with Austria.
The volume of investments that a foreign client is willing to put into property differs.
"It depends on the price development and the ways of financing banks provide. Currently, around Sk90,000 (€2,403) per square metre is the maximal threshold. The majority of investors buy apartments in the range of Sk40,000 to Sk60,000 per square metre. Investment into one apartment usually does not exceed Sk10 million," Roth said.
The daily Pravda recently wrote that foreigners are more and more interested even in residential property in south of central Slovakia, for example, in the districts of Lučenec and Veľký Krtíš, where the price of property is among the lowest in Slovakia. Dutch, French as well as Swiss, want to use the houses and apartments for recreation and business.
12. Jun 2006 at 0:00 | Marta Ďurianová