Slovak real estate market

After entering EU in 2004, Slovak property prices have been growing steadily. Slovak economy, due to reforms, is constantly expanding and several global companies have selected Slovakia as their new destination for their production facilities. Tax and workforce advantages attracted to Slovakia also administration and business centres, along with massive boom of retail centres. The latest trend is the development in the area of services, hotels and tourism. GDP growth is the fastest in Central and Eastern European (CEE) countries and third fastest in Europe.

Examples of major companies investing in Slovakia: U.S.Steel, Volkswagen, Siemens, PSA Peugeot, KIA Motors, Matsushita, Sony, etc.

These investors, mainly in automotive and electronics industries have created thousands of well-paid jobs, creating a wealthy population for residential projects development.

Residential:

Currently booming area is still Bratislava, with hundreds of development projects to choose from. This boom will create thousands of residential units to rent and there is a doubt of whether market will prove such a demand for residential rentals. Still, with increasing living standard, Slovaks tend to buy more properties, pushing prices high, especially due to Euro adoption in 2009. Despite fears from supernumerary amount of flats in Bratislava, these worries did not prove right and the demand for residential units in Bratislava still overreaches the offer.
Other areas with residential projects to come are Trnava, Žilina and Nitra. Nearby major investors (PSA, KIA and Sony) all attract more workforce and better living conditions, developing lifestyle in these towns in general. Hence residential projects demand is also very high.
Mountains projects are still to be discovered in Slovakia, with currently small amount of very successful projects running already. High Tatras remain the top location, utilizing the nearby airport and stunning views of the mountains. Jasná (Low Tatras), Donovaly (Low Tatras) and other locations (Oščadnica, Malinô Brdo,…) also became known for their mountainous locations and ski resorts. Due to unsteady weather, locations like Liptov become more and more interesting. Liptov, for example, offers not only mountainous surroundings and ski resorts, but also water sports, wellness centres, thermal water parks, historical sites, summer sports, trekking and other activities, UNESCO site and untouched nature and picturesque villages.

Investments:

Slovakia is very much depending on infrastructure, allowing investors an easy – or an uneasy access.
Western Slovakia, becoming now logistics heart of Central and Eastern Europe, attracted most investors. Bratislava, Nitra and Trnava regions „pick the fruits” of a well established infrastructure, highways, railway connections and vicinity of Austria, Czech Republic and Hungary and attracted therefore major investors like Volkswagen, PSA Peugeot or Sony. Though, these regions dispose today with significantly decreasing unemployment and higher salaries, which makes it more interesting for residential projects than well cost structured for investment projects. Highways construction and better transportation access proved other regions to become more interesting. Unlike in the west, central and eastern Slovakia still has an advantage of higher unemployment, still with a skilled and well educated workforce. KIA Motors plant in Žilina is the biggest investment project. It was followed by many investors in other Slovak regions, mainly automotive industry suppliers. Eastern Slovakia is the least advanced region in investments, but the location – close to Ukrainian (and following Russian and other eastern European) markets, easy access to Poland and Hungary and high unemployment is a massive potential for the region for its development. This covers industrial, logistics, administrative centres and residential projects.

Investment projects in Slovakia are covered by SARIO – Slovak Investment and Trade Development Agency.
Below, please click on an analysis of this agency – Invest in Slovakia