FOCUS SHORT

Delinquent real estate auctions

FINANCIAL problems faced by the owners of real estate are sending more reclaimed properties to the auction block in Slovakia. The number of auctioned properties is well above the level before 2009 and the number of such properties that could be tagged as luxurious is increasing, according to Martin Krnčan from Dražobná Spoločnosť, an auction company, the TASR newswire wrote in early August.

FINANCIAL problems faced by the owners of real estate are sending more reclaimed properties to the auction block in Slovakia. The number of auctioned properties is well above the level before 2009 and the number of such properties that could be tagged as luxurious is increasing, according to Martin Krnčan from Dražobná Spoločnosť, an auction company, the TASR newswire wrote in early August.

“The financial and real estate crisis is far from being over; there is still a lack of money in circulation,” said Krnčan, adding that Dražobná Spoločnosť has been reporting an annual 100-percent increase in real estate auctions for the last two years.

Before January 2010 the company had approximately 150 active auctions but in early August 2011 it was about 550, Krnčan said, adding that not only are there more new auctions but the number of successfully-closed auctions has been decreasing as well.

The behaviour of creditors, which are mostly banks, has also changed, according to Krnčan, noting that they have changed their internal procedures and a debtor neglecting his or her financial obligations will find their property sent to auction or threatened with auction sooner than in the past.

“The aim of banks, of course, is not to auction off all the real estate but they are starting to use [the threat of] auction to a greater extent as a means to force debtors to at least start dealing with their problems,” said Krnčan, adding that in the end only a small portion of overdue property loans are resolved in an actual auction.

Krnčan now sees more lucrative real estate in better localities being involved in auctions, while in the past it was more typically apartments in residential complexes that were auctioned.

“Currently, it is also common for an apartment located in the Bratislava centre, worth between €150,000 and €200,000, that its owner has not been able to sell that is being sent for auction.”


Get daily Slovak news directly to your inbox

Theme: Real Estate

Read more articles by the topic

Top stories

News digest: Nationwide testing gained contours

The Defence Ministry reveals details on upcoming testing, removal of the STU rector was far from normal. Take a look at our latest news digest.

President Zuzana Čaputová meeting with scientists and experts on epidemiology, infectology and medicine.

Senate voted STU rector down. Police called to the uni as well

The session of the Academic Senate proposed that Rector Fikar be dismissed.

Miroslav Fikar

Dozens of people die of COVID every day. A drop not expected for at least two weeks

People who would otherwise survive may die of other serious diagnoses due to the epidemic.

Illustrative stock photo

Slovakia orders a curfew and embarks on its COVID experiment

High turnout in testing in four northern districts, decision awaited on extending the project to the nation. Prison for a prominent prosecutor and parliament's speaker injured.

Waiting for the results of COVID tests during the pilot phase of the nationwide testing in the town of Nižná in Orava, northern Slovakia.