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 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.
Despite geopolitical uncertainty and a slow down in the economic cycle, investment in the global property market has seen a significant rise of 18 percent year-on-year to a new record high of $1.8 trillion, up from $1.5 trillion in 2017. Cushman & Wakefield, which examines global commercial real estate investment activity, assessing cities by their success at attracting capital, came to this conclusion in their latest report.
Fewer than 3,000 new apartments are available on the market of new residential buildings in Bratislava, which is the lowest figure for the past two years. As demand for new apartments is still relatively lively, prices for new units continue to grow slightly, the TASR newswire cited the real estate agency LEXXUS.
The Austrian company Soravia has opened a new retail zone in Liptovský Mikuláš in northern Slovakia, the Retail Park Liptovský Mikuláš. It is 9,000 square metres and is the first investment by the Austrian developer outside Bratislava. The investment totalling €22 million has created 100 jobs so far.