Why you should pay attention to Slovenian property
For a long time, investors have focused on the major Western European markets. However, today, they are increasingly turning their attention to Central European states. In particular, demand for Slovenian property is growing.
Despite its small size, Slovenia has much to offer buyers. The country boasts a stable economy, diverse offerings and high profitability.
Slovenia market overview
Residential property prices in Slovenia have shown steady growth over the past 10 years. In 2024, the country’s average housing price increased by 8.5%. High rates of price increase are observed in the building land sector. Here, prices have risen by 17%, indicating a shortage of supply.
The situation in different regions of the country is as follows:
1. The highest demand is observed in the Ljubljana property market, which has led to an increase in prices. The average cost per square metre of housing in the capital is around €4,500.
2. Second place in terms of price level goes to resort locations, both coastal and mountainous. Here, property is estimated at €4,300 per square metre.
3. In less popular areas, properties are offered at a more affordable price. In locations such as Bela Krajina and Prekmurje, the cost per square metre can be as low as €1,500.
Slovenian commercial property will also be of interest to foreign buyers. Compared to other European markets, it provides high yields. This is reflected in property values, which are rising rapidly. The average price growth in the sector in 2024 was around 16%. The office segment saw the highest increase, at over 23%.
Profitability of property sectors
Commercial real estate in Slovenia attracts investors due to its high capitalisation. This makes it possible to expect an increase in rental yields. The average yield in this sector is 7% per annum. Another advantage is the use of the euro, which eliminates currency risk.
The profitability of residential property is estimated at around 4.5%. Flats in the centre of the capital are estimated to be 4.3% profitable, and 4.7% profitable in the city as a whole.
The highest profitability rates in central Ljubljana are among one-bedroom flats. A property valued at €485,359 can be rented for €2,000 per month. At the same time, the yield will be 5% per annum.
Studios costing €227,500 are second in terms of profitability in the capital. The monthly rental rate is €800, and the estimated income is 4.2%.
On average, renting a flat in the country brings in 3.5-3.6% per annum. Prices per square metre range from €3,507 to €4,411.
Like most European markets, Slovenia is experiencing a shortage of new housing. This is fuelling price growth, which could reach 5–10% by 2025. High demand will continue in all major cities and holiday areas.