Slovaks have new investment favourite – recreational real estate

The increased interest is pushing prices up.

Zemplínska Šírava lakeZemplínska Šírava lake (Source: TASR)

Slovaks are increasingly interested in recreational real estate. The demand has increased by 20 percent over the last year. The most wanted properties are cottages near Michalovce in eastern Slovakia.

“The reason for this in particular is the Zemplínska Šírava lake, which has again become a significant recreational area for the whole east of Slovakia,” Martin Lazík, real estate analyst with the real estate website Nehnutelnosti.sk, told the Hospodárske Noviny. In May alone, Slovak interest in cottages in this region increased by as much as 50 percent.

Michal Macháč, an expert on travel from TM Travel, confirms that people are looking for alternative and cheaper ways of spending holidays by the water.

“The low price of services in eastern Slovakia, compared with the west, means that Slovaks increasingly use the opportunities that, for example, Zemplínska Šírava, has to offer,” said Macháč. “As well as the Zemplín region, people are also becoming more interested in cottages in Modra and Senec, closer to Bratislava.”

In the long-term, the biggest interest in recreational real estate is in the Low and High Tatras and their ski resorts. These regions attract most tourism investments.

“The most expensive weekend houses and other kinds of recreational real estates are right here,” said Lazík.

The second most wanted locality for recreational housing is Modra. Here interest has increased by 35 percent over the year. On the other hand, the locality of Terchová village in north-western Slovakia has fallen in popularity from first to third position. The Senec region followed fourth, with an annual increase of 30 percent, based on an analysis by Nehnutelnosti.sk.

Increased interest results in higher prices.

“The price of recreational real estate offered on real estate websites has increased compared to the previous year,” said Lazík, adding that this is also due to the greater availability of refurbished cottages and weekend houses, the price of which is higher than those in original condition.

The highest increase in prices was registered in the Žilina Region – 12.5 percent.

Lazík sees the general increase in real estate prices behind the higher prices of recreational real estate.

“Especially in the vicinity of large towns, it seems that people are re-building their cottages into houses, in which they live year-round,” said Lazík.

However, comparison of the price of recreational real estate is very difficult as, contrary to apartments, the size does not play a significant role. The final price is affected by the locality, condition and outfit of the real estate. A cottage on a lake or on the slope of a ski resort has a different price than a cottage with worse accessibility lying outside the main tourist resorts.

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