After the British carmaker Jaguar Land Lover (JLR) announced its plan to build a brand new plant in Nitra, local real estate prices skyrocketed. Now the situation seems to be calming down. This is because the central bank has tightened conditions for taking out mortgages as well as developers announcing projects for the construction of new apartments.
In the years 2016 and 2017, real estate prices in Nitra and its vicinity increased by 20-30 percent. Rudolf Pauke from the real estate agency RE/MAX Family does not see this as natural growth caused by an increase in employment, labour productivity or wages. Real estate prices were mainly affected by the behaviour of people, the TASR newswire reported.
After the announcement of the investment, real estate prices began to increase. Because of this many sellers withdrew their offers from the market with the aim of waiting for higher prices. On the other hand, there was a high demand from people who wanted to buy residential real estate with a view to later renting it or selling it on for a higher price. This resulted in a drop in offers and an increase in demand, causing a significant increase in prices.
The price of one-room apartments and studios grew the most. While before JLR’s arrival a studio in Nitra went for about €29,000, at the time of the biggest boom in prices one could expect to pay as much as €54,000. The price of a one-room apartment went from €35,000 to almost €70,000. At this level they could no longer be sold, so the price cap was about €65,000, said Matias Fest from Fest Garant Invest, as cited by TASR.
The price increase in land was even higher due to a shortage. Before the arrival of the carmaker, land cost €30-€50 per square metre. Now it is €80-€120 per square metre, said Fest.
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.
Good office spaces keep employees happy at work, while having a modern, healthy and attractive office is also an efficient tool for recruiting new talent. Companies in Slovakia are aware what influence the working environment has on their employees and design their offices accordingly, show results of an annual competition organised by the real estate consultancy CBRE.
European commercial real estate investment volumes reached a record high of €312 billion in 2018. This represents a 0.3 percent increase on 2017, which was previously a record, when total investment volumes reached €311 billion, according to the latest data from leading global real estate advisor, CBRE.
Germany is the sixth European country in which the Slovak developer HB Reavis is active. In mid-February it announced two major acquisitions in Berlin and Dresden totalling 3.5 hectares. The announcement followed only a few days after media reported on the sale of some HB Reavis projects in the Czech Republic.
The oldest shopping mall in Bratislava, Polus City Center in Bratislava’s Nové Mesto borough, is undergoing major reconstruction. With an investment of €4 million euros, the interior and exterior of the shopping mall will undergo radical change.