Demand for new flats in the real estate market is still high, however supply is growing faster, agreed participants at the expert conference, Real Estate Market 2017.
The price of flats is still rising, however the National Bank of Slovakia (NBS) does not anticipate a real estate bubble.
The supply of new flats in Bratislava last year reached the same level as 2008. In contrast to 2015, it grew by 33 percent, excluding a year-on-year increase on the 2007 and 2008, it’s a record, said Filip Žoldák from Herry’s real estate agency.
“This increase is the result of selling. Looking at year-on-year change, demand is growing more slowly than supply,” said Žoldák, as quoted by the TASR newswire.
The increase in price is, according to him, the result of market development. Until 2014 the price of finished and unfinished flats balanced. The average price was from 1,800 to 1,850 per square metre without VAT. Between 2014 and 2015 the price of an unfinished house increased by 200 euros per square metre.
Žoldák added that that average occupancy of all new buildings in Bratislava is about 64 percent. There are 3,400 free flats and less than 5 percent are finished.
“When someone wants to move, they can either wait for a new building or choose an old one,” he said for TASR.
New projects can sell 25 to 40 percent of their capacity in the first three months.
“Everyone buys in at the beginning, because they are aware that the prices in individual projects at different phases can change and that this is also based on how well they sell,” he summed up.
The Deputies of development from the Corwin, Lucron Group and the Cresco Group confirmed that because of the situation in the last year they also increased prices of the flats in their projects, from 5 to 15 percent. People also buy flats as an investment but according to their data it’s less than 10 percent.
Analyst from the NBS, Mikuláš Cár, said that demand for housing in Slovakia persists because of low interest rates for loans, which are today under 2 percent.
“Currently, the national bank takes small steps to prevent people falling into debt and having trouble with the repayments,” said Cár as quoted by TASR.
He admits that although the cost of flats is probably in its last stage of growth, they are still far away from the risk zone that could give rise to a real-estate bubble. The year-on-year increase of average living costs is estimated to be from 3.5 to 4 percent this year.
Photo: Vladimir Simicek, SME
Construction and expansion of shopping centres in Slovakia will continue. “Slovakia expects extensive construction and expansion of shopping centres in 2017 and 2018,” said Katarína Paule, head of the retail team at Cushman & Wakefield in Slovakia. “In 2017, there will be as much as 56,258 square meters in total to be completed, with 83 percent being new shopping centres, and 17 percent planned expansions of already existing projects.”
Arete Invest, a Czech investment fund focused on real estate, plans to invest around €30 million in Slovakia in 2018. It is considering new construction on industrial premises it already owns as well as new acquisitions. The company sees great potential in the Slovak market.
The new residential area of Slnečnice that is being built on the outskirts of Petržalka will get a new shopping centre, Slnečnice Market. There will be more than 30 shops, restaurants, cafés, a fresh produce market and others on 8,300 square metres. The first phase of the opening is planned for November 30 and the second for the following weeks. The centre will also offer 195 parking places for the public.
The new development that is rising on the premises of the former Bratislava Thread Factory, colloquially known as Cvernovka, is getting a new name – Zwirn. The new name symbolises a move forwards as well as connecting the whole zone with its history, claims the Slovak-Finnish developer YIT Slovakia. The factory has changed names several times over the years. It was called Pozsony Csernagyar, Pressburger Zwirnfabrik, Bratislavská Cvernová Továreň, Danubia, and Závody MDŽ 8. Marca.
A thorough refurbishment of the Trnavské Mýto pedestrian underpass, a dilapidated but significant hub of public transport in Bratislava, was launched on October 16. Works are projected to last nine months with the plan being to open the renewed underpass in mid July 2018. The work will be divided into phases in order that people can use the underpass during its revitalisation. The Immocap Group are the company responsible for the refurbishment and will invest €2.5 million into the project while Bratislava city council will provide €1.2 million for the purchase and installation of new escalators and lifts.
Coca-Cola HBC Česko a Slovensko, a company within the Coca-Cola Hellenic group, has sold its production and distribution premises of 155,000 square metres, including all technologies, in Lúka near Piešťany to Priemyselný Areál Lúka. The deal followed the decision of Coca-Cola to move its production from Slovakia to Austria. Both parties agreed not to disclose the value of the transaction.
Slovak-Finnish company YIT Slovakia has launched the sale of apartments in the third phase of the STEIN2 project in Bratislava. For the first time, there are apartments with terraces on offer. The final building approval is expected during the last quarter of 2018.