Slovenia’s Real Estate Market: Will the Prices Return to the Pre-crisis Level?
The real estate market in Slovenia feels more confident. This is evidenced by the positive dynamics over the past year. The number of purchase and sale transactions has grown and the price per sq. m has increased. Therefore, the prices are gradually approaching the peak indicators of 2007.
The first signs of steady growth, reduced exposure and accelerated transactions in the real estate market could be observed last year, according to the report of the Department of Geodesy (GURS). After 2015, when he housing prices reached its bottom, in the following year of 2016, the market significantly revived, especially in the fourth quarter.
Prices for Apartments in Slovenia
The highest average cost of residential property was recorded on the coast—in Portorož and Lucija (2,380 euros per sq. m), followed by Ljubljana (about 2,180 euros per sq. m). The capital also marked the largest percentage increase in the cost of apartments. According to the latest statistics, as compared to the lowest values of 2015, apartments in Ljubljana (secondary market) went up by 6% and in the rest of Slovenia—by 2.6%.
Official data for 2017 have not yet been published, but the development of the market shows that in 2017, the growth in sales of residential property will increase.
Apartments find a quick sale, especially in Ljubljana, where realtors note increased demand, and, as a result, rising prices. “The cost of a 2-room apartment in the centre of Ljubljana today can reach from 3,000 to 3,500 euros per square metre,” says Zarja B. Mavec from the Inalbea real estate agency. “Now the situation is such that the supply of apartments is less than its real demand. First and foremost, apartments quickly disappear in the secondary market, as the supply in the primary market does not meet the needs of buyers.”
Prices indicated in the ads for the sale of housing are much more appropriate to reality than it was during the crisis, when prices were offered almost randomly. “Today there is no such difference as in the years of the crisis. The prices indicated in the announcements are only 10–15% higher than the actual market values,” Zarja B. Mavec specifies. However, Mavec does not expect that this year’s price records will be beaten in the short term.