The new indebting rules tightened by the National Bank of Slovakia (NBS) will primarily impact citizens of the Slovak capital, Bratislava. They will be able to buy on credit, from an average wage, maximally a one-room flat in a new building or a two-room flat in an older block of flats. Other regions will be significantly less affected by the new lending cap, Poštová Banka has found out.
Based on the new lending cap effective as of July 1, the total indebtedness of an individual must not exceed eight-fold his or her annual net income. The share of loans provided above this level will gradually decrease and as of April 2019 cannot exceed 5 percent.
While the new rules will apply to new loans, the old loans of the applicant will be taken into consideration.
People especially interested in purchasing more expensive real estate will be impacted by the tightening of the rules. Their net income may not guarantee a loan big enough to enable them to buy such housing.
For example, in Bratislava Region the average monthly wage is €1,200, which means a net wage of €902 for a single person. Thus he or she will be able to borrow €86,592 at the most. In other regions it will be even less.
The bank warns that when buying new housing the buyer will need cash equalling 20 percent of its price as well as the central bank limiting the number of mortgages provided above 80 percent of the real estate price. Thus, an average Bratislavan will be able to buy housing up to €108,240. When the average prices of real estates are taken into consideration, this will be enough just for the purchase of an apartment 56.82 square metres in size. In the case of new residential buildings, this will be enough for just one-room apartment since their price climbs to €3,000 per square metre.
In other regions of Slovakia the situation will be more favourable. The reason are the lower prices. But in these other regions the more expensive apartments in new residential buildings will be less affordable for many, according to Poštová Banka.
The main industrial regions in Slovakia are reporting a lack of accommodation capacity for workers. These are in the vicinities of industrial and logistics parks mostly along highways connecting Bratislava with Košice (D1), leading from Bratislava to the Czech Republic (D2) and the dual carriageway from Trnava to Banská Bystrica (R1).
The developer, belonging to the Bencont Group has already started pulling down the buildings and cleaning the three-hectare area. “We believe that Rínok Rača, which we will begin to construct soon, will be the new centre of the borough and will naturally fit into the life of its citizens,” said Martin Šimurda, representative of the developer Rínok Rača, as cited in the press report.
In the first quarter of 2018, the overall offer of office space in Bratislava reached almost 1.72 million square metres. The vacancy rate slightly decreased to 5.99 percent from 6.18 percent in the previous quarter. The lowest vacancy rate was in the Bratislava V district (3.22 percent), the highest in the Bratislava IV district (9.05 percent), the Slovak branch of the real estate services firm Cushman & Wakefield reported on April 20 as cited by the SITA newswire.
The developer Penta Real Estate is preparing the second phase of the Bory Bývanie residential project. It will create 287 apartments in nine, four- to six-storey blocks. It plans to launch the construction during the third quarter of 2018.
Petržalka, the most populated borough of Bratislava, has gotten a new roofed market place, Petržalská Tržnica. It is located in a reconstructed shopping centre of almost 5,000 square metres on Bratská Street. The new market place welcomed its first shoppers on Friday, April 6.
The British retail chain Tesco is continuing the sale of its department stores, former Priors, in Slovakia. Following the sale of its stores in Žilina, Nitra, Prešov and Košice the retail chain is now selling its last piece of real estate in Slovakia, the department store My (We in English) on Kamenné Square in Bratislava. Tesco Stores SR has confirmed negotiations with potential buyers, the Trend weekly reported.
Interest in the acquisition of recreational real estate has increased over the last three years. The demand has been spurred by the activities of developers in this sector.