Is it worth buying housing in Slovakia: a yield overview
According to the results of the analysis of the real estate market in Slovakia, this year objects added 6.7%, which is due to increased interest from foreign investors. Dwelling in Slovakia is a profitable investment, rental income is about 4.5% per annum. Contribute to the growth in demand and good mortgage lending conditions.
For comparison, the increase in the cost of residential property last year was fixed at 1.37%. Such a result, as shown by the market for the current period, observed for the first time since 2017. Interest in buying apartments and houses in the country is shown not only by the local population, but also by foreign investors. Many people use credit services. In the third quarter of this year, mortgage debt increased by 9.5% to 30.24 billion euros. Despite the impressive figure, this figure is the smallest compared to other EU countries. Mortgage debt ratio of Slovakia is about 31% of GDP, while the EU average is 50%.
The yield from renting real estate in the country is considered moderate – about 4.5% per annum. A square meter of housing in Bratislava costs 2910 euros. Apartment of 120 square meters in the center of the capital will cost 349,320 euros. In this case, its monthly rent will be about 1320 euros.
In the third quarter of the economy in Slovakia, there is a slowdown in growth by 1.3%, which is typical for most EU countries and the world. At the same time, the country as a whole shows good dynamics, and experts from the European Commission predict that in the next period the economy will improve by 2.7%.
Prices for housing are rising practically all over Slovakia. Usually the maximum dynamics is observed in the capital, but in this case Bratislava was ahead of the city of Nitra – here the cost of housing increased by 27%.
On average, throughout the country, the price per square meter has increased by approximately 7% to 1494 euros. Bratislava still holds the first place in the price of housing, but the increase in price is observed in almost all regions. The exception is Košice, where the average price has decreased by 3.5%. In Nitra, a square meter of housing is 878 euros, in Trenčín and Žilina – 895 euros.
The increase in demand and prices on the real estate market in Slovakia will continue to be observed. The country is increasingly interested in foreign investors, who are ready to invest even with a moderate yield of objects. Therefore, it makes sense to think about buying housing in Slovakia for rent already today.