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.”
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