The growing prices of real estate did not stop people's interest in purchasing them. In the long-term, the decreasing offer has not met the demand for residential properties.
Flats in the capital are being sold faster than they are being added to the offer. This stems from the data of the Herrys real estate agency, which claims that one third more flats were sold than added to the offer.
The offer dropped to half compared to the first quarter of 2021, the TASR newswire reported. Even though the market saw a certain hesitancy from buyers in the first weeks since the war in Ukraine broke out, the situation quickly returned to how it was before the crisis.
Developers not hurrying
Property prices are still growing and the average price in Bratislava is currently €3,699 per square metre. The sale of more expensive flats was also reflected in the price increase.
“The small offer of flats is one main reason behind the price growth,” said Filip Žoldák from Herrys, as quoted by TASR. “It does motivate the purchase of a flat as soon as possible because in combination with inflation, prices are increasing on a monthly basis.”
The small offer is also due to several developers halting property sales, as they have sold a sufficient number of flats. That is why a drop in prices of flats in new buildings is not to be expected, experts say. In combination with the unclear development of prices for construction materials, developers are not under pressure to sell flats as soon as possible.
No room for price decrease
The current data suggest that about 75 percent of flats are being sold in new buildings and not even three flats are sold on average in a month within one project.
A further decrease of the offer is expected, especially due to the substantial lack of readiness of new developer’s projects. This is caused by the long permit process at the authorities. Žoldák does not expect a decrease in property prices, quite the opposite – he expects further growth.
“We don't see any reasons now for the growth of prices to stop,” he noted, as quoted by TASR.