REAL estate developer HB Reavis Group expects prices to fall in Slovakia. "It is already obvious regarding old apartments, where the price bubble has been shrinking since the beginning of the year, and prices will probably stabilise at a level of 15 to 20 percent under that of new apartments," Roman Karabelli, a spokesman for HB reavis, told the SITA newswire. “In the medium segment, we do not expect a significant fall. The luxury sector, on the other hand, is likely to experience a collapse and steep reduction in prices.”
Karabelli continued that HB Reavis’ data shows that real estate prices will stagnate at approximately €8,000 per square metre across Central Europe.
But the Orco Property Group said that the price of the apartments in its portfolio have maintained their level, and that the company does not expect any declines. Jana Švecová, director of the group’s Slovak branch, explained that this is due to well-chosen locations and the highest standard of materials.
Another development firm, Grunt, predicted a downward price correction. According to Roman Feranc, a member of Grunt’s board of directors, psychology will be at the root of a short-term fall in the price of older and less attractive apartments.
“Although the real need for housing has not changed, at present, people do not know whether to make their lifetime investment now or wait for later,“ he told SITA.
The company stated it does not expect a drop in prices, as the demand for housing is still high.
3. Nov 2008 at 0:00 | Compiled by Spectator staff from press reports