After two years of gradual revival, the Slovenian real estate market came very close to the 2007 record figures last year, the Surveying and Mapping Authority (GURS). A total of 32,000 transactions were recorded and their value broke the EUR 2bn milestone for the first time since 2007.
Real estate worth EUR 2.1bn changed hands, with housing prices reaching “normal market values”, according to GURS.
The most transactions involved apartments and family houses, 17% commercial real estate, 10% land, 3% farm and forest land and 8% all other types of real estate, GURS says in its report.
The number of transactions recorded was the highest since 2007, when GURS started keeping records, and almost 60% higher than in 2009, when it hit rock bottom. Compared to 2015, it was up by less than 10%.
The value of the transactions was up by a quarter compared to 2015, the highest increase on record, and by two-thirds compared to 2013, when it was the lowest.
The sales of apartments and family houses continued to grow for the third successive year. Unlike in 2015, when growth was powered by the sales of apartments, last year the sales of houses dominated.
GURS believes the market is thriving due to low interest rates, more housing loans, higher employment and wage bill, and the prices of apartments, which have not reached pre-crisis levels yet.
Due to low interest rates, investments into real estate have become an alternative savings method.
After hitting rock bottom in 2015, the sale of land for construction picked up again last year. The number of transactions was up by 16.7%, which could indicate the start of a new investment cycle, according to GURS.
Transactions with business real estate were down last year but the market is expected to see a gradual revival due to the favourable economic situation, low interest rates and growing interest in real estate investment.
Property prices have been slowly increasing but have not reached pre-crisis levels yet. The apartments from failed housing projects have been sold out along with almost all apartments build in the last few years, so the apartments on sale are reaching “normal market prices”, GURS said.
The Surveying and Mapping Authority expects the real estate market growth to gradually slow down this year, while the prices of apartments, houses and land for construction will continue to rise, especially in the coast and the Ljubljana area, where demand already exceeds supply./IBNA
Source: The Slovenia Times