Rodina LIVING



Supply of new flats outgrows demand
Half year ago,

Supply of new flats outgrows demand

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


More articles

Lexxus: Bratislava records the most expensive apartments since the crisis

Lexxus: Bratislava records the most expensive apartments since the crisis
2 days ago

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.

Lack of labour and suitable land for construction may discourage new investors

Lack of labour and suitable land for construction may discourage new investors
1 week ago

Although Slovakia has so far been able to attract new investors, in the not so distant future it may have problems with the placement of further investments. The reasons for this are the steadily declining availability of labour, the very slow development of road infrastructure and the lack of readiness of land suitable for the development of industrial parks, according to Martin Varačka, director of the industrial real estate division of the real estate consulting company CBRE in Slovakia.

Foreign workers in Slovakia seek the most economical accommodation

Foreign workers in Slovakia seek the most economical accommodation
2 weeks ago

Foreigners coming to Slovakia to work for the manufacturing industry try to live as economically as possible. They often do not arrive with their families and only work for a short period of time.

Damaged part of Apollo Business Centre to be demolished next March

Damaged part of Apollo Business Centre to be demolished next March
3 weeks ago

The Apollo 1 business centre on Prievozská Street in Bratislava is suffering from stability problems and will be pulled down and replaced with a new development. The demolition should start in March 2018 and be completed by the spring of 2019. This time-line stems from the plans of its owner, the company Smart City Centre, published as part of the ongoing environmental impact assessment (EIA) proceedings. Demolition work is expected to cost about €3.1 million.

UNIQ office building wins golden LEED certificate

UNIQ office building wins golden LEED certificate
1 month ago

UNIQ Staromestská, a new office building in Bratislava’s Old Town, has successfully undergone demanding environmental certification. Only five months after getting approval for construction works, the project by the developer Cresco Group received the LEED Gold certificate.

Prešov finally gets a shopping mall

Prešov finally gets a shopping mall
1 month ago

Prešov, as the last regional capital, has finally gotten a bigger shopping centre. The Eperia Shopping Mall opened on Friday, November 24. During the first weekend about 70,000 people visited, the Trendreality.sk website reported.

Zaha Hadid´s Sky Park will get one more residential tower

Zaha Hadid´s Sky Park will get one more residential tower
1 month ago

Residential development Sky Park in Bratislava, one of the last projects of now deceased prominent world architect Zaha Hadid, will be bigger than originally planned. It will now have four instead of three residential towers. The fourth tower will be built on the neighbouring plot bought by the developer earlier this year. The extension is now undergoing an environmental impact assessment.