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.”
The developer YIT Slovakia has launched the sale of apartments in the second building of the fifth, last, phase of the Tammi Dúbravka development. The new block of apartments will provide 42 apartments. It will be connected to the second building of the fifth phase with a community park. The sale of apartments in the first building was launched in September 2017.
The first weeks of 2018 indicate that the high interest in new warehouses in Slovakia is continuing. Developers are responding to the demand with the preparation of expansion phases for their successful projects as well as plans for new industrial premises and parks. The latter may start during the first half of 2018 and so developers would be able to offer new spaces in late 2018.
The developer Merius has brushed up its Semiramis Residence project which it plans to build in front of the Nové Mesto railway station and opposite Kuchajda lake in Bratislava. Its first attempt three years before failed as the local council did not grant it construction permission. The re-worked project with a price tag of €47 million is now undergoing an environmental impact assessment (EIA).
Although Slovakia has so far been able to attract new investors, in the not so distant future it may have problems with the placement of further investments. The reasons for this are the steadily declining availability of labour, the very slow development of road infrastructure and the lack of readiness of land suitable for the development of industrial parks, according to Martin Varačka, director of the industrial real estate division of the real estate consulting company CBRE in Slovakia.
Foreigners coming to Slovakia to work for the manufacturing industry try to live as economically as possible. They often do not arrive with their families and only work for a short period of time.
The Apollo 1 business centre on Prievozská Street in Bratislava is suffering from stability problems and will be pulled down and replaced with a new development. The demolition should start in March 2018 and be completed by the spring of 2019. This time-line stems from the plans of its owner, the company Smart City Centre, published as part of the ongoing environmental impact assessment (EIA) proceedings. Demolition work is expected to cost about €3.1 million.
UNIQ Staromestská, a new office building in Bratislava’s Old Town, has successfully undergone demanding environmental certification. Only five months after getting approval for construction works, the project by the developer Cresco Group received the LEED Gold certificate.