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 Penta Real Estate is preparing the second phase of the Bory Bývanie residential project. It will create 287 apartments in nine, four- to six-storey blocks. It plans to launch the construction during the third quarter of 2018.
Petržalka, the most populated borough of Bratislava, has gotten a new roofed market place, Petržalská Tržnica. It is located in a reconstructed shopping centre of almost 5,000 square metres on Bratská Street. The new market place welcomed its first shoppers on Friday, April 6.
The British retail chain Tesco is continuing the sale of its department stores, former Priors, in Slovakia. Following the sale of its stores in Žilina, Nitra, Prešov and Košice the retail chain is now selling its last piece of real estate in Slovakia, the department store My (We in English) on Kamenné Square in Bratislava. Tesco Stores SR has confirmed negotiations with potential buyers, the Trend weekly reported.
Interest in the acquisition of recreational real estate has increased over the last three years. The demand has been spurred by the activities of developers in this sector.
In a short period of time the eastern Slovak town of Prešov has acquired another shopping centre. After the 22,000 m2 Eperia, with more than 100 shops, opened last November, the Solivaria shopping centre, close to the bus station, was ceremonially opened on March 15. Built on the 10,500 m2 site of the former industrial premises of ZPA Křižik, it offers 20 shops and 296 parking places. Its construction cost €20 million, Lýdia Kulíková from the company Prešov Park, informed.
Small, especially one-room, apartments and bed-sits are maintaining the highest prices in Bratislava. The price of two- and three-room apartments has decreased moderately. The interest in family houses and construction parcels is still high while demand exceeds availability.
The new city quarter growing in Bratislava’s Petržalka borough is popular among those looking for new housing. Last year people bought a total of 565 apartments there. This number accounted for more than 11 percent of all new apartments sold in Bratislava in 2017.