Record real estate prices, but still not a bubble
The average housing real estate price in Slovakia was 9.7% higher annually in the third quarter, at a new all-time high of €1,603 per sqm, according to central bank (NBS) data. The growth pace was the fastest since 2008. NBS expects the growth pace to slow down in coming quarters, and says real estate is still not in the ’bubble’ territory. Bratislava prices are 6% above the previous peak in 2008. Since then, the average wage in the country has risen 52% and the average interest rate on mortgages has fallen from 6% to 1.2%. NBS pointed out the insufficient supply of affordable housing.