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 Saudi-Arabian company Sisban has started building a brand new logistics park near the village Chocholná-Velčice in the Trenčín Region. Sihoť Park will spread over 160,000 square metres, while investments are projected at €50 million. This is the company’s first investment in Slovakia, the TASR newswire reported.
Tightening of conditions for taking mortgages has made house ownership less available for many Slovaks. Banks do not provide mortgages covering 100-percent of real estate prices anymore, and thus those interested financing a house or flat via a mortgage must pay a portion of the purchase price in cash.
New Stein, an office building recently built on the former Stein brewery premises in Bratislava has a new owner. MiddleCap Real Estate Ltd. sold the building to Prvý Realitný Fond managed by IAD Investments. Even though they did not reveal the price, the companies claim that it is one of the largest real estate transactions in Slovakia for 2018.
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.