Research of real estate market in Slovakia

  • 08/09/2021

In the Slovak Republic, prices of residential real estate increased by 4.2% in the first quarter of 2021 compared to previous year.

According to the National Bank of Slovakia, the annual growth rate reached 15.5%.

The average price of residential properties in the first quarter of 2021 increased compared to the previous quarter by almost 77 EUR/m2 to the amount of 1930 EUR/m2. Although, prices fell in the fourth quarter of 2019 due to fears of a pandemic and a future crisis. In the first quarter of 2020, real estate prices rose sharply to the point of 97 EUR/m2 due to the market rapid adaptation to the situation. After all, under the influence of a pandemic, people prefer to stay longer at home, so they are looking for a new, more comfortable apartment, real estate with their own land, a large balcony, or a terrace. This interest of buying a new apartment is also supported by so called „Home Office“, when people want to have the atmosphere of a workplace in their own apartment. It is also influenced by the fact, that nowadays, many companies have noticed that it will pays off to continue working this way even after the end of the pandemic. This is due to the fact that they do not have to pay rent for the office, they can save on energy, water and cleaning costs.

The average price of dwellings in the first quarter of 2021 increased by 54 EUR/m2 to the price of 2179 EUR/m2.

On a quarter-on-quarter comparison, it is about growth of 2.5%. The annual growth rate fell to the point of 8.6%. According to the National Bank of Slovakia, during last quarter the price of 4-room and 1-room apartments grew faster then 2- and 3-room apartments. The average price of houses and villas increased by 102 EUR/m2 to the level of 1471 EUR/m2. Its quarter growth rate grew by 7.4% and annual growth rate reached 16.4%. The overall annual growth rate in residential real estate prices was contributed by a greater extent of apartments prices growth rate, than growth in prices of house. In the first quarter of 2021, the difference in prices between apartments and houses per m2 was 32.5%, which is less than the average difference in prices for whole year of 2020, which was 35.9%. The average price per m2 for apartments and houses together in Slovakia in the last quarter was around 1825 EUR/m2.

In the first quarter of 2021 compared to the previous quarter, the prices of real estate rose in all regions. Traditionally, the Bratislava Region made the most significant contribution in pricesgrowth, as the capital of Slovakia, the most developed and most popular location for business, making a family and living. In absolute comparison, the highest average price of properties in Slovakia is in the Bratislava region (2579 EUR/m2), which match up with a quarterly growth of 4.4%.

Even though Bratislava is the capital city of Slovakia, its dwellings prices are more advantageous than real estate in the capitals of its neighbors. For example, Vienna in Austria is the closest capital city to Bratislava by distance, and Prague is the capital city of the Czech Republic, a country that is historically and culturally closest to Slovakia, but according to Deloitte's research, the average price per square meter in a new building in 2019 was 4868 EUR/m2 in Vienna, 3395 EUR/m2 in Prague, and 2805 EUR/m2 in Bratislava. So, it can be summarized that prices are higher in Vienna by 73.5%, and in Prague by 21% than in Bratislava.

In many localities, demand is higher than a supply, even thought, according to the National Bank of Slovakia, the supply of real estate is constantly rising, along with it, the prices of dwelling are also growing.

For this reason, we recommend of buying a property as soon as possible, so that you do not have to pay double, triple and multiple prices later on. After all, more and more people want to buy or rent a property, either for themselves or for the purpose of obtaining a long-term income.

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