Accommodation in Slovakia: market prospects and value overview
In recent years, the attention of investors has been focused not only on developed EU countries. They see a real market perspective in the states that are in Central Europe, including Slovakia. The country’s economy is developing, its indicators are improving in different segments. Positive dynamics is also observed in the real estate market. Prices for housing in Slovakia are increasing, which is a good sign for investors and developers.
According to the results of last year, the cost of apartments and houses in the country has increased by 3.3% on average. In 2018 the figures were higher – more by 5.3%, and in 2017 – by 2.9%.
Demand in the real estate market is increasing due to the increased purchasing power of the country’s citizens. Foreigners also show interest in local objects. Contribute to the acquisition of the opportunity to register a mortgage. Data from the European Central Bank showed that last year’s lending increased by 9.7% to 31 billion euros. In this case, Slovakia has one of the lowest mortgage debt indicators in the world, which is measured relative to GDP. Here it is 32.7%, the average value in the EU – 50%.
The highest return on housing is observed in Bratislava. In the capital per square meter of apartment should be laid out an average of 2910 euros. In the city center apartments with an area of 120 square meters will cost 349,320 euros. Rent of such apartments will cost about 1320 euros per month. Given these figures, you can expect a yield of 4.5% per annum. At a distance from Bratislava, you can buy an apartment with one or two rooms for 50 thousand euros.
Despite the fact that economic growth in 2019 was less than in 2018, experts call the Slovak market promising. According to forecasts, this year’s GDP will increase by 2.2%, and in 2021 – by 2.6%. Interestingly, in the 3rd quarter of last period, the country saw a jump in housing prices – by more than 11%. This figure is considered the highest among all EU countries. The fourth quarter was not happy with this result, but analysts say that the real estate market in Slovakia will continue to develop.
The state also has a program for obtaining a residence permit in exchange for investment. However, here the requirement is not limited to the purchase of housing, in addition it is necessary to conduct business in the state.
The obligatory list of documents to be submitted to the consulate includes a certificate of IE registration or a business plan, if you choose to open a LLC.