Slovakia

House prices are rising strongly in Slovak Republic

House prices in Slovakia are now rising strongly, with demand buoyed by low interest rates. The average residential property price rose by 7.04% to €1,369 (US$1,437) per square metre (sq. m.) during the year to Q2 2017, an acceleration from last year’s 4.75% y-o-y rise, according to the National Bank of Slovakia (NBS). When adjusted for inflation, property prices rose by 6.02%. During the latest quarter, property prices rose by 2.78% (2.4% in real terms). Despite this, Slovakia’s house prices are still 11.6% below their Q2 2008 peak (-21.6% in real terms). In Bratislava region, which has the country’s most expensive housing, residential property prices rose by 6.7% y-o-y to €1,904 (US$2,283) per sq. m. during the year to Q2 2017, up from y-o-y rises of 6.3% a year earlier and 2.6% in Q2 2015. All the other regions also saw strong house price increases during the year to Q2 2017.

• Trencin experienced the biggest rise of about 15.9% y-o-y to €744 (US$892) per sq. m.
• In Nitra, house prices surged 15% y-o-y to €668 (US$801) per sq. m.
• In Presov, house prices rose by 10.3% y-o-y to €838 (US$1,005) per sq. m.
• In Trnava, house prices rose by 9% y-o-y to €937 (US$1,124) per sq. m.
• In Kosice, house prices increased 7.4% to €990 (US$1,187) per sq. m. over the same period
• In Zilina, house prices rose by 5.7% y-o-y to €866 (US$1,038) per sq. m.
• In BanskaBystrica, house prices increased 4.6% y-o-y to €768 (US$921) per sq. m.

he housing boom in Slovakia lasted from 2006 to Q2 2008, with house price rises ranging from 14% to 35% per annum. The surge stopped in late 2008, and prices either fell or only increased a little in following years.

• In 2009, house prices fell by 12.31% (-12.66% in real terms)
• In 2010, house prices fell by 2.08% (-3.16% in real terms)
• In 2011, house prices fell by 2.68% (-6.86% in real terms)
• In 2012, house prices increased by 0.89%, but in fact fell by 2.55% when adjusted for inflation
• In 2013, house prices fell by 2.57% (-3.01% in real terms)
• In 2014,house prices increased by a meagre 0.25% (0.25% in real terms)
• In 2015, house prices rose by 1.15% (1.62% in real terms)
• In 2016, the housing market started to grow stronger, with house prices rising by 5.84% (6% in real terms) from a year earlier

Slovakian house prices are expected to continue rising during the remainder of this year and until 2018, amidst a continued surge in property demand both from local homebuyers and foreign investors, according to local property experts. Slovakia registered economic growth of 3.3% in 2016, from real GDP growth rates of 3.8% in 2015, 2.6% in 2014, 1.5% in 2013, 1.7% in 2012, and 2.8% in 2011. The Slovakian economy is projected to expand by 3.3% this year and by another 3.7% in 2018, according to the IMF. here are no legal restrictions on foreigners buying buildings in Slovakia.

Source: http://www.globalpropertyguide.com

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