At the end of 2018, the offer of housing units in newly finished apartment buildings in Bratislava hit a low since 2002-2005, when this market started developing in Slovakia. This resulted in an increase of average prices of apartments.
“Demand for housing in Bratislava is high and the condition of the economy is favourable for the real estate market,” said Matúš Jančura, senior analyst with Bencont Investments, as cited by a press release. “Even though limits on housing loans have complicated the paths of many to a loan, predictions that demand will stop have not materialised. Contrary to this, there is a continual desire to acquire apartments, but lack of affordable housing curbs this demand.”
During the final quarter of 2018, the number of available apartments dropped to 2,873 due to a minimum addition of new development projects. Fewer than 250 apartments were added to those on offer in the final quarter of 2018, analysts with Bencont Investment reported in a press release on January 14.
Offers in Bratislava consisted of 105 new projects; half of them now have fewer than 15 available apartments, mostly either apartments with disadvantageous layouts or luxurious, and thus more expensive, apartments. Big projects with offers of more than 100 apartments available include Slnečnice, Bory Home, Guthaus and Kesselbauer.
The average price per square metre in a newly completed apartment in Bratislava amounted to €2,907 per m2 at the end of 2018. This means a rise of 5.5 percent quarter to quarter and 11.5 percent year to year.
The growth of the absolute price of apartments was even steeper as it jumped by 14.7 percent y/y. The price of an average apartment thus reached almost €193,000. The increase was caused by a growth in prices itself as well as an increase of the size of apartments. The latter increased by 4.9 percent y/y to 69.27 m2. The trend of bigger flats has been growing in Bratislava since 2016 when an average sized apartment on offer was 63-64 m2.
The new city district Bory, between the Small Carpathians and the Morava River in Bratislava, continues to grow. Its developer Penta Real Estates has announced two more phases to the residential area. After completion, the new district will feature offices, shops, parks and amenities including a kindergarten, besides housing.
Housing construction in recent years has lagged behind consumer demand in Slovakia. Not only were new apartments bought, but also older homes, whose prices were pushed higher by the acute shortage of new residential buildings.
Long-term manager and developer of logistics warehouses, P3 Logistic Parks, continues to record strong growth over the past 12 months. This has been driven, in part, by the boom in online demand, which has fuelled the need for strategically-located warehouses in Europe. P3’s customer base has grown by 20 percent, with customer retail share surpassing 30 percent for the first time in the company’s history.
Housing affordability in the Bratislava Region is the lowest compared to the remaining seven regions of Slovakia. This is true for employees with an average monthly wage of €1,360 and average prices of residential real estate. While the average wage in this region is 39 percent above the national average, the average price for one square metre of real estate is 117 percent higher than the average, specified VÚB bank analyst Andrej Arady.
Company owners are searching for more effective solutions for managing their companies. One of such solution is shared office space; as much as 80 percent of companies using this solution put cost reduction as the reason. This way they save especially on costs needed for acquisition of offices and rentals, as well as repair and maintenance costs, a survey conducted by International Workspace has confirmed.
Extensive reconstruction of Mlynské Nivy Street in Bratislava and construction of a brand new central bus station, including an adjacent high rise office building, are progressing. Currently almost 450 workers of various professions and 18 cranes are working on it, the biggest construction site in central Europe at 4.4 hectares large. The developer HB Reavis still promises to launch the new bus station in late 2020.
In the former industrial zone on Račianska Street in Bratislava, next to the Lidl retail store, stands an old brick smokestack and concrete beams. These are the remnants of a long defunct parquet factory. Developer Corwin plans to replace the remnants with Guthaus, a residential complex with a new vision for housing quality.