At the end of the second quarter of 2018, apartments under construction numbered 76,000 in Slovakia. This is the highest number since 1996 when the Slovak Statistics Office began to register this data. Because the figure for residential real estate under construction in the early 1990s was low, figures from the second quarter of this year are the highest since the launch of independent Slovakia in 1993, the Trend weekly reported.
In spite of this, demand for new real estate, thanks to record breaking low interest rates on mortgages, is so high that prices for old apartments are rising too. They have increased by 7.2 percent y/y while prices for new real estate grew “only” 6.7 percent y/y.
Prices are driven up not only by demand but also costs when the construction boom itself increases prices not only of construction materials but especially wage costs. Prices for construction work have increased by only 3 percent y/y, but the average wage in the construction sector has already increased by almost 8 percent.
Under the continuing low interest rates, decreasing unemployment and economic growth, construction of residential real estate as well as prices for real estate may further increase. This is also because Slovakia still has, compared to the average of the European Union, a low ratio of apartments to the number of citizens as well as a high share of the population living in overcrowded dwellings – 38 percent in 2016.
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.