In Slovakia, home prices are still rising sharply due to robust demand and cheap financing rates. According to the National Bank of Slovakia, the average residential property price nationally increased by 8.6% to €1,671 (US$1,878) per square meter (sq. m.) for the year to Q1 2020, following y-o-y increases of 6.3% in Q4 2019, 9.7% in Q3, 6.4% in Q2 and 7.6% in Q1 (NBS). Inflation-adjusted home prices increased by 5.7%.
Property prices rose 4.6% in the most recent quarter (3.4% in actual terms).
The price of homes in Slovakia is now about 8% higher than it was in Q2 of 2008. Prices, however, are still 11% below their pre-crisis levels after accounting for inflation.
Bratislava region
Residential property prices in the Bratislava region, which has the most expensive housing in the nation, increased by 8.7% y-o-y to €2,231 (US$2,508) per sq.m in Q1 2020, after increasing by 5.6% a year earlier.
Before Q1 2020, all other regions also experienced significant increases in home prices.
Zilina region
Zilina saw the largest increase, up roughly 16.5% y-o-y to €1,254 (US$1,410) per sq.m, however, this is still slower than the 21.9% growth of the prior year.
Trencin region
Following a 19.5% increase in Q1 2019, home prices in Trencin increased 14.5% y-o-y to €1,025 (US$1,152) per square meter.
Banska Bystrica region
House prices in Banska Bystrica rose by nearly three times as much in the first quarter of 2020, up 14.1% y-o-y to €923 (US$1,038) per sq.m.
Presov region
House prices in Presov increased by 6.3% y-o-y to €1,050 ($1,180) per sq.m, a dramatic down from the 19% growth observed in Q1 2019.
Kosice region
In contrast to a 3.5% fall in Q1 2019, house prices in Kosice increased by 5.5% y-o-y to €1,092 (US$ 1,227) per sq.m.
Trnava region
House prices in Trnava increased by 5.3% y-o-y to €1,183 (US$1,330) per sq.m, a deceleration from a 12.4% increase in the prior year.
Nitra region
House prices in Nitra increased by 1.9% year over year to €900 (US$1,012) per sq.m, a dramatic decline from a 27.8% surge in the prior year.
Slovakia’s previous real estate bubble spanned from 2006 until Q2 of 2008. Late in 2008, the rise came to an end, and prices either decreased or barely rose in the years that followed. In 2016, the growth of home prices resumed, and they have been rapidly increasing ever since.
The economic effects of the coronavirus pandemic are predicted to cause a short-term slowdown in the housing market in Slovakia, but starting by the end of 2020, fundamentally high demand for real estate from both domestic and foreign investors will cause it to quickly rebound.
After annual increases of 4% in 2018, 3% in 2017, 2.1% in 2016, and 4.8% in 2015, the GDP increased by 2.3% in 2019. According to the European Commission, Slovakia’s economy would fall by about 6.7% this year before rapidly rebounding with 6.6% growth in 2021.
In Slovakia, there are no legal limitations on foreigners purchasing real estate.
Apartment prices are surging
According to the NBS, apartments experienced the highest increases in home prices nationwide, increasing by 9.7% year over year in Q1 2020 to an average price of €2,006 (US$2,255) per square meter.
1 room
Prices for a single room increased by 8.9% to €2,266 (US$2,547) per square meter in the year to Q1 2020
2 rooms
From Q1 2020 until the end of the year, prices increased by 9.5% to €2,108 (US$2,370) per square meter
3 rooms
Over the same period, prices increased 11.9% to €1,901 (US$2,137) per square meter
4 rooms
In Q1 2020, prices rose 6.9% year over year to €1,860 ($2,091) per square meter
5+ rooms
In Q1 2020, prices rose 11.8% year over year to €2,121 (US$2,384) per square meter
During the year leading up to Q1 2020, the value of houses climbed by 6.4% to €1,264 (US$1,421) per square meter.
