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
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.
It is no surprise that a good working environment can motivate better performance from employees. Thus companies, during this time of qualified labour shortage, are endeavouring to improve the working environment for their employees as much as possible. To reflect this development, the real estate consultancy company CBRE Slovensko organises a competition for the best office. The Profesia company, running the biggest job portal in Slovakia, has won its second year. Among other companies given awards are the IT company Sygic and the business-services organisation EY.
After existing and potential clients showed an eminent interest in central Slovakia, the biggest logistics real estate company in Slovakia, Prologis, began to look for suitable land for the construction of a new industrial park in the desired locality close to Nitra, Banská Bystrica and Zvolen. It found it in Žiar nad Hronom.
The developer YIT Slovakia has launched the sale of apartments in the second building of the fifth, last, phase of the Tammi Dúbravka development. The new block of apartments will provide 42 apartments. It will be connected to the second building of the fifth phase with a community park. The sale of apartments in the first building was launched in September 2017.
The first weeks of 2018 indicate that the high interest in new warehouses in Slovakia is continuing. Developers are responding to the demand with the preparation of expansion phases for their successful projects as well as plans for new industrial premises and parks. The latter may start during the first half of 2018 and so developers would be able to offer new spaces in late 2018.
The developer Merius has brushed up its Semiramis Residence project which it plans to build in front of the Nové Mesto railway station and opposite Kuchajda lake in Bratislava. Its first attempt three years before failed as the local council did not grant it construction permission. The re-worked project with a price tag of €47 million is now undergoing an environmental impact assessment (EIA).