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
The main industrial regions in Slovakia are reporting a lack of accommodation capacity for workers. These are in the vicinities of industrial and logistics parks mostly along highways connecting Bratislava with Košice (D1), leading from Bratislava to the Czech Republic (D2) and the dual carriageway from Trnava to Banská Bystrica (R1).
The developer, belonging to the Bencont Group has already started pulling down the buildings and cleaning the three-hectare area. “We believe that Rínok Rača, which we will begin to construct soon, will be the new centre of the borough and will naturally fit into the life of its citizens,” said Martin Šimurda, representative of the developer Rínok Rača, as cited in the press report.
The new indebting rules tightened by the National Bank of Slovakia (NBS) will primarily impact citizens of the Slovak capital, Bratislava. They will be able to buy on credit, from an average wage, maximally a one-room flat in a new building or a two-room flat in an older block of flats. Other regions will be significantly less affected by the new lending cap, Poštová Banka has found out.
In the first quarter of 2018, the overall offer of office space in Bratislava reached almost 1.72 million square metres. The vacancy rate slightly decreased to 5.99 percent from 6.18 percent in the previous quarter. The lowest vacancy rate was in the Bratislava V district (3.22 percent), the highest in the Bratislava IV district (9.05 percent), the Slovak branch of the real estate services firm Cushman & Wakefield reported on April 20 as cited by the SITA newswire.
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.