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 oldest shopping mall in Bratislava, Polus City Center in Bratislava’s Nové Mesto borough, is undergoing major reconstruction. With an investment of €4 million euros, the interior and exterior of the shopping mall will undergo radical change.
Mlynica, a former industrial building in Bratislava rebuilt into a multi-purpose building, is one of 40 projects shortlisted for the prestigious European Union Prize for Contemporary Architecture – Mies van der Rohe Award. The biennial competition is considered to be the most prestigious architectural award in Europe.
The first of three residential towers of Sky Park, a project designed by the prominent Zaha Hadid Architect studio in Bratislava, reached its final height at the 31st above-ground floor at the end of last year. The other two towers will reach their final height during the first half of this year. Construction of the first of two office buildings and restoration of the historical heating plant known as Jurovičova Tepláreň are going on as well.
At the end of 2018, the offer of housing units in newly finished apartment buildings in Bratislava hit a low since 2002-2005, when this market started developing in Slovakia. This resulted in an increase of average prices of apartments.
The iconic building of the British retail chain Tesco department store in the centre of Bratislava has changed hands. The new owner of the building is the Mirage Shopping Center company of Žilina-based businessman George Trabelssie. Since 2016 the retail chain Tesco has sold five department stores across Slovakia. Trabelssie, who is close to former chair of the Slovak National Party (SNS) Ján Slota, acquired Tesco department stores also in Nitra and Žilina, the Hospodárske Noviny business daily reported. Tesco will continue to operate in the building on Kamenné Square as it will rent the premises.
The reconstruction of the Park Inn by Radisson Danube hotel in Bratislava has become the ugliest new building constructed between the years 2011 and 2018. As much as almost one third of 1002 participants in a survey organised by the website Trend Reality of the economic weekly Trend voted for it. The weekly launched the survey in early December. Its goal was to start a discussion and hold up a kind of mirror to developers.
Prices of apartments grew at a two-digit pace in Slovakia in 2018. The average price of an apartment increased from €1,479 per square metre to €1,655 per square metre during the first 11 months of 2018. This means an increase of €176 per square metre or 11.9 percent, Vladimír Kubrický, analyst with the Real Estate Union, told the TASR newswire.