Real estate prices are rising fast
Housing real estate prices averaged €1,930 per sqm in the first quarter of this year, 15.5% more under an annual comparison, central bank NBS data show. Prices are growing in all regions, and home prices are growing faster compared to apartments. As wage growth has slowed down recently, housing affordability is deteriorating. NBS says prices are still not in the ’bubble’ territory. It points out that the pandemic has slowed down new apartment construction. When combined with cheap mortgages and high savings, which Slovaks tend to put into real estate, it expects a further growth in prices. Rents fell 15% in 1Q. (rtvs.sk)
NBS is monitoring list prices, while the statistics office ŠÚ is monitoring actual contract prices and their growth is much lower. In the final quarter of 2020, the pace was 16% (NBS) vs 7.3% (ŠÚ). Apartments in Bratislava are expensive; a comparison of average wages and average real estate prices puts Bratislava as the third most expensive city in the EU after Paris and Prague, followed by Budapest and Warsaw. As for rents, Bratislava is the fourth most expensive city following Warsaw, Sofia and Lisbon.