After the British carmaker Jaguar Land Lover (JLR) announced its plan to build a brand new plant in Nitra, local real estate prices skyrocketed. Now the situation seems to be calming down. This is because the central bank has tightened conditions for taking out mortgages as well as developers announcing projects for the construction of new apartments.
In the years 2016 and 2017, real estate prices in Nitra and its vicinity increased by 20-30 percent. Rudolf Pauke from the real estate agency RE/MAX Family does not see this as natural growth caused by an increase in employment, labour productivity or wages. Real estate prices were mainly affected by the behaviour of people, the TASR newswire reported.
After the announcement of the investment, real estate prices began to increase. Because of this many sellers withdrew their offers from the market with the aim of waiting for higher prices. On the other hand, there was a high demand from people who wanted to buy residential real estate with a view to later renting it or selling it on for a higher price. This resulted in a drop in offers and an increase in demand, causing a significant increase in prices.
The price of one-room apartments and studios grew the most. While before JLR’s arrival a studio in Nitra went for about €29,000, at the time of the biggest boom in prices one could expect to pay as much as €54,000. The price of a one-room apartment went from €35,000 to almost €70,000. At this level they could no longer be sold, so the price cap was about €65,000, said Matias Fest from Fest Garant Invest, as cited by TASR.
The price increase in land was even higher due to a shortage. Before the arrival of the carmaker, land cost €30-€50 per square metre. Now it is €80-€120 per square metre, said Fest.
The Saudi-Arabian company Sisban has started building a brand new logistics park near the village Chocholná-Velčice in the Trenčín Region. Sihoť Park will spread over 160,000 square metres, while investments are projected at €50 million. This is the company’s first investment in Slovakia, the TASR newswire reported.
Tightening of conditions for taking mortgages has made house ownership less available for many Slovaks. Banks do not provide mortgages covering 100-percent of real estate prices anymore, and thus those interested financing a house or flat via a mortgage must pay a portion of the purchase price in cash.
New Stein, an office building recently built on the former Stein brewery premises in Bratislava has a new owner. MiddleCap Real Estate Ltd. sold the building to Prvý Realitný Fond managed by IAD Investments. Even though they did not reveal the price, the companies claim that it is one of the largest real estate transactions in Slovakia for 2018.
The prestigious architecture award Arch went to the Vallo Sadovsky Architects studio for the Nádvorie (Courtyard) project in Trnava involving reconstruction and extension of a set of historical buildings in the city centre.
After more than a 10 year break, construction work on the derelict skeleton of an unfinished shopping centre in Nitra will resume. The developer Living Park will rebuild it into a complex named Promenáda Living Park, combining shopping with housing. It has already obtained a construction permit, the SITA newswire reported.
Aupark, one of the first modern shopping centres in Bratislava, is to extend its premises. A new block, for which it has already obtained permissions, should add a new parking lot as well as extension of the retail area, the Trend weekly informs on its website dedicated to real estate.
The construction industry is a huge consumer of energy and generator of greenhouse gases. Thus, it is important to pursue green building to reduce these negative impacts. In Slovakia, green buildings and ecological construction make up 20-25 percent of all newly built real estate commented Martin Pribila, an expert in construction and green building in the discussion programme Tablet TV, hosted by the TASR newswire.