Prices of apartments in Bratislava have increased to their highest level since the crisis, the real estate agency Lexxus has discovered. Based on its latest residential real estate analysis, Slovaks are prepared to pay still more for apartments. This is because they fear further increases in real estate prices as well as the impact of measures taken by the National Bank of Slovakia (NBS). These may worsen accessibility of housing for the middle classes from January.
“The average price of apartments sold during the fourth quarter of 2017 achieved the level of €1,960 per square metre excluding VAT,” said Peter Ondrovič, risk manager and real estate valuer at Lexxus as cited by the SITA newswire. “This is undoubtedly the highest price of apartments in Bratislava during the post-crisis period, based on Lexxus’ data.”
Compared with the previous quarter, the average price of apartments sold increased by 3.1 percent while in terms of year-on-year comparison, it increased by as much as 8 percent.
Apartments in the Bratislava I district, which includes the city centre, are the most expensive. The average price oscillates here at around €2,509 per square metre excluding VAT. The second most expensive district is Bratislava III with an average price of €2,051 ex VAT.
From the viewpoint of individual categories, the most expensive are two-room apartments, i.e. apartments with one bedroom and one living room. In the Bratislava I district the price of such an apartment was €2,610 per square metre ex VAT. The lowest price was recorded in the category of apartments with five and more rooms in the Bratislava IV district. It was €1,562 per square metre ex VAT.
Clients continue to be most interested in two-room apartments except in the Bratislava IV district, where the demand was the highest for three-room apartments.
Lexxus expects that the measures of the central bank valid as of January 1 will worsen the situation especially for the middle classes. Based on latest measures, potential buyers have to be prepared to pay a greater portion of the price in cash while a larger disposable portion of their income should remain in their account monthly after settling the monthly instalment.
“There are other interventions by the NBS in the mortgage financing scheme planned that will have a stabilising effect on the residential real estate market,” Lexxus writes. It expects that the following restrictions will significantly tighten conditions for taking out mortgages. “This will suppress the growth dynamics of the residential real estate market.”
While Bratislava already accommodates almost 30 shopping centres, another one is on the horizon. Macho Consulting, a company that has been devoted especially to residential projects in the past, will build Matrix Mall in the more or less industrial zone of Bratislava in the borough of Nové Mesto. The shopping centre on the corner of Magnetova and Vajnorská streets, close to the Vozovňa Nové Mesto depot, will offer retail and office space.
Trnava-based tycoon Vladimír Poór has sold the recently opened City Arena shopping centre in Trnava to Peter Korbačka, the head of the board of directors of the developer J&T Real Estate. The latter already owns the Eurovea shopping centre in Bratislava. Neither the price nor other details of the transaction have been disclosed.
The emptied defective Apollo Business Centre 1 in Bratislava will be replaced by a brand-new construction. The developer HB Reavis estimates the launch of demolition work for the end of 2018. Construction work on the new business centre, the Nové (new) Apollo should start in late 2019 and be complete in 2021. Exact dates will depend on permission processes.
Bratislava is to get another revitalised public space. The developer Corwin is renewing a neglected park on Kmeťovo Square in the Old Town borough. Works on the park, which lies between Bernolákova and Wilsonova Streets, have already started and should be complete by the beginning of the summer.
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.
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.