Fueled by long-standing supply constraints, continuously growing prices temper sales activity in the Slovenian housing market despite the strong underlying demand and improving lending conditions.

This extended overview from the Global Property Guide covers key aspects of the Slovenian housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Housing Market Snapshot
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

Residential property prices in Slovenia continued to rise in 2024, fueled by resilient, though gradually softening, demand and a persistent shortage of housing supply. According to the Statistical Office of the Republic of Slovenia (SURS), in Q4 2024, the Nationwide House Price Index increased by 8.46% (7.19% inflation-adjusted), marking the tenth consecutive year of annual price growth.

Slovenia's house price annual change:

Prices for newly built dwellings increased by 9.46% year-on-year, slightly outpacing the 8.28% growth in the secondary market. Newly built apartments recorded the sharpest increase, with prices rising 10.2% year-on-year, followed by existing detached houses (+10.0%), existing apartments (+7.3%), and newly built detached houses (+2.0%).

Data Source: SURS.

According to the Surveying and Mapping Authority of the Republic of Slovenia (GURS), the median price of second-hand apartments sold in 2024 reached EUR 2,920 per square meter, representing an annual increase of 11.88%. The highest prices were traditionally recorded in Ljubljana, where the median rose by 12.03% to EUR 4,510 per square meter. The Coastal Area (Obala), including Koper, Piran, Portorož, Izola, and Ankaran, followed with a median price of EUR 4,320 per square meter, up 11.05% year-on-year.

Detached houses also posted significant gains. The national median reached EUR 165,000 per unit, increasing by 17.02% compared to the previous year. The strongest growth was recorded in the southern outskirts of Ljubljana (+30.27%), followed by the northern outskirts (+12.63%) and the city of Maribor (+11.43%).

Median prices of secondary apartments and houses sold in selected submarkets:

With residential sales activity continuing to decline, marking the third consecutive year of falling transaction volumes, the GURS expects the housing market to cool, with price growth likely to slow in the near term. However, a sharp or sudden correction remains unlikely, particularly in Ljubljana, where demand continues to significantly outpace supply.

Industry experts, however, remain confident in the market's long-term strength. "Transaction volumes began to drop after the pandemic - initially due to inflation, followed by rising interest rates," said Boštjan Udovič, Director of the Chamber of Real Estate Business at the Chamber of Commerce and Industry of Slovenia (GZS). "While this has led to fewer deals, demand remains strong. Properties continue to sell quickly and at higher prices. A slowdown in activity alone isn't sufficient to bring prices down."

Dušan Lazar, Director of Century 21 Slovenia, expects residential prices to rise by around ten percent in 2025, with continued growth in the years to follow - albeit at a more measured pace. "We are building far too little to meet the housing needs of the population," he stated. "Even when we look at trends in international property markets, it's clear that many of the earlier pessimistic forecasts were overstated."

Vesna Levstek, Director of Nepremičnine Plus, highlighted the interplay of key market drivers: "Purchasing power has remained stable, interest rates are decreasing, supply is still limited, and demand remains high. These conditions continue to support upward price pressure."

Overall, the experts see real estate to remain an attractive investment. "With mortgage rates falling and inflation continuing, property is still seen as a stable, profitable asset - particularly for those seeking rental income," said Thomas Krelj, Director of Fesst Nepremičnine. "Given the high level of savings among Slovenian households, many are turning to real estate as a reliable way to safeguard their wealth and ensure it keeps pace with inflation."

Demand Highlights:

Elevated Prices Temper Market Activity

For the third consecutive year, residential sales activity in Slovenia has declined, as continued growth in housing prices places increasing pressure on affordability. According to the SURS, a total of 8,124 dwellings were sold nationwide in 2024, representing a year-on-year decrease of 21.13%. The total value of residential transactions fell by 14.72%, amounting to EUR 1.34 billion.

The GURS analysts note that while recent government announcements - such as plans to introduce a property tax and restrictions on short-term rentals - have had some impact, the dominant factor remains price growth. "It is the continued increase in housing prices that has significantly reduced accessibility for a broader segment of the population," the authority commented.

Newly built dwellings accounted for just 5% of total transactions, or 413 units, representing a steep year-on-year decline of 50.77%. The drop in second-hand property sales was less pronounced, with 7,711 transactions recorded - a decrease of 18.50% compared to 2023.

Among second-hand transactions, apartments continued to dominate, comprising 58% of total sales. In 2024, 4,500 existing apartments were sold, down 22.80% year-on-year. In Ljubljana, 1,264 apartment sales were registered (a decline of 13.29%), while Maribor recorded 440 transactions (down 52.95%). The remainder of the country accounted for 2,651 sales, reflecting a 29.05% annual decrease.

Data Source: SURS.

Views on the future trajectory of the market remain varied. The GURS expects the number of transactions to keep declining in 2025, suggesting that the Slovenian real estate sector may be approaching a turning point. "We are likely at the peak of the real estate cycle and entering a period of gradual cooling. If the current pace of decline in residential transactions continues in 2025, it could indicate the onset of a new market downturn," the authority stated.

Offering a more optimistic outlook, Boštjan Udovič from the Chamber of Real Estate Business emphasizes that demand remains strong and continues to outpace supply, particularly in high-demand areas. While he acknowledges that elevated interest rates and high property prices have reduced the pool of eligible buyers, he underscores the market's continued resilience. "Apartments in Ljubljana and tourist areas continue to sell quickly," he notes, "which is why prices in these locations are still rising."

Supply Highlights:

Rising Costs and Bureaucracy Continue to Constrain New Housing Supply

A persistent imbalance between strong housing demand and insufficient supply, intensified by rising construction and financing costs, continues to drive home price growth in Slovenia. According to the OECD, the number of dwellings per 1,000 people has remained stagnant at approximately 410 since 2011, despite steadily increasing demand for housing.

The latest data from the SURS shows that residential construction gained momentum following the COVID-19 pandemic, with the number of completed dwellings rising at an average annual rate of 11.7% between 2021 and 2023, partly attributed to pent-up demand. However, in 2023, housing starts began to slow, and more recent forward-looking indicators suggest a continued decline in activity.

Data Source: SURS.

Cumbersome and time-consuming permitting processes are frequently identified as key barriers to adequate residential development. In 2024, 4,515 dwellings were authorized for construction - a 10.66% year-on-year decrease and the second consecutive annual decline. Although provisional data for the first quarter of 2025 indicates a slight recovery, with authorizations rising by 5.86% year-on-year to 1,174 dwellings, experts caution that it is too early to interpret this as a shift in the underlying trend.

"The speed at which building permits are issued is still insufficient for supply to meet demand and lags behind the average level of building permits across the EU, though Slovenia shares this condition with other central, eastern, and southeastern European countries," the OECD explained.

Data Source: SURS.

In 2024, only three out of twelve statistical regions recorded year-on-year growth in the number of dwellings authorized. The highest share of the authorizations (27%) was located in Central Slovenia, home to the capital city of Ljubljana, totaling 1,224 dwellings and representing a 19.58% year-on-year decline.

Number of dwellings authorized for construction by statistical region:

The Bank of Slovenia highlighted in its latest biannual Financial Stability Review that weakening confidence in the construction sector signals a likely further decline in future housing supply. The report identifies high construction and financing costs, along with persistent labor shortages, as key constraints on new residential development.

"Construction costs for new-build housing have risen sharply in recent years, and in the first quarter [of 2024] were up almost 25% on their average in 2021 <…> Half of construction firms faced a shortage of skilled labor, while a third faced high costs of material and labor", stated the report.

Rental Market:

Limited Supply Drives Up Rents, Government Adopts Measures to Curb STR

Like many other Eastern European countries, Slovenia is characterized by a high homeownership rate, partly as a legacy of the mass privatization during the transition to a market-oriented economy in the early 1990s. As a result, the private rental market is comparatively small, with only 6.8% of households being tenants paying market rents as of 2024 (up from 4.8% reported in 2015) and a further 18.4% paying reduced non-profit rents or occupying properties rent-free.

Slovenia's rent price index:

Against the backdrop of the overall limited housing supply trailing behind the strong demand fueled by low unemployment, wage increases, and low household indebtedness, rental inflation in Slovenia has been outpacing the general growth of consumer prices since mid-2021. Most recently, the actual rentals for the housing component of the consumer price index (CPI) reported by the SURS registered a 3.8% year-on-year growth in March 2025, while the overall inflation stood at 2.0%.

Data Source: SURS.

The largest rental provider in the country is the Housing Fund of the Republic of Slovenia, a public fund responsible for the implementation of the national housing program, with over 7,300 apartments (including those owned by subsidiary organizations). According to the information provided by the Fund to Forbes Slovenia, in 2024, the average monthly market rent in their properties reached EUR 7.43 per sqm, while the average monthly non-profit rent stood at EUR 4.43 per sqm. On the regional level, the highest average rents were reported in Central Slovenia at EUR 8.04 per sqm. In the private rental market, a 2024 study published by the Najemniški SOS platform indicated average listed rents ranging from EUR 8.00 per sqm in Inner Carniola to EUR 19.30 per sqm in Ljubljana Center.

Global Property Guide research conducted in February 2025 found average advertised rents in Ljubljana at EUR 700 (USD 729) for studio units, EUR 1,100 (USD 1,145) for 1-bedroom units, EUR 1,550 (USD 1,614) for 2-bedroom units, and EUR 1,950 (USD 2,031) for 3-bedroom units. The corresponding gross rental yields for apartments in the capital city averaged 4.34%, down from 4.45% previously reported in February 2024.

In response to growing concerns over the availability and affordability of housing, in March 2025, the Slovenian Government adopted a new Hospitality Act, which includes regulations on short-term rentals (STR). The legislation limits short-term rentals at 60 days per year for apartments in multi-unit buildings and at 150 days per year for apartments in single- or two-unit properties, aiming to return some of the existing supply originally intended for housing rather than hospitality to its primary purpose.

According to The Slovenia Times, the measures have already provoked a backlash from property owners, who are considering legal action and claim the changes could eliminate 90% of private short-term rental operators in the country. The authorities, however, see the action as proportionate and necessary, considering the state of the housing market. "The rationale for this regulation is to return apartments to permanent forms of residency. Given the inaccessibility of housing - the fact that we have a housing crisis in the country - state intervention is justified," said Matevž Frangež, a state secretary at the Ministry of the Economy, Tourism, and Sport.

In parallel, the government has announced plans to add 20,000 public rental apartments to the market in the next ten years.

Mortgage Market:

Falling Interest Rates Revive Demand for Housing Loans

Lending interest rates in Slovenia have been on a general downward trajectory along with the European Central Bank (ECB) policy rates. Since the beginning of the policy easing cycle in June 2024, the ECB lowered its benchmark rates by 175 b.p., with the most recent cut in April 2025 bringing the deposit facility rate to 2.25%, the main refinancing operations rate to 2.40%, and the marginal lending facility rate to 2.65%.

Slovenia's mortgage loan interest rates:

At the same time, commenting on the latest policy decision, the ECB noted that further adjustments of key rates will follow a data-dependent and meeting-by-meeting approach, considering current conditions of heightened uncertainty. "Most measures of underlying inflation suggest that inflation will settle at around the Governing Council's 2% medium-term target on a sustained basis. <…> The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions. Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions," said the regulator in a press release.

Data Source: ECB.

After peaking in the second half of 2023, the average interest rates on loans to households for house purchase in Slovenia have been decreasing gradually. The average interest rate on new housing loans was most recently reported at 3.03% in February 2025, down 1.04 percentage points from its peak level. For outstanding housing loans, the average interest rate reached 3.23%, 0.38 p.p. down from the peak but still notably elevated compared to the pre-2022 baseline.

Average interest rates on loans to households for house purchase:

This dynamic in interest rates had a positive impact on the demand for housing loans in the country. Previously, the annual volume of new residential lending in Slovenia shrank by nearly half (-48.3% year-on-year) in 2023, according to the ECB data. With the improving lending conditions and overall macroeconomic landscape, however, lending activity rebounded in 2024, the total value of new housing loans (including pure new loans and renegotiations) issued between January and December reaching EUR 1.41 billion (USD 1.53 billion), an 18.6% increase compared to the 2023 level. The growth continued in early 2025, with double-digit year-on-year increases in the value of new loans registered in January and February, indicating the ongoing recovery of the market.

Data Source: ECB.

In the long term, the use of mortgages for house purchase has become more common in Slovenia over the recent decades. "The share of residents with a mortgage has increased sharply since 2010, albeit from low levels in international comparison, reflecting strong housing demand patterns and the willingness and growing capacity of younger cohorts to form independent households," noted the 2024 working paper on the housing market in the country from the OECD Economics Department.

As of 2024, 16.3% of Slovenian households were homeowners with an outstanding mortgage or housing loan, up from 10.8% in 2015, according to the EUROSTAT figures. In parallel, the banking system's exposure to housing loans has increased by more than half over the last decade, as pointed out in the latest financial stability review from the Bank of Slovenia.

The expansion of the housing loan stock in Slovenia re-accelerated in 2024, registering a 4.0% year-on-year growth compared to 0.7% in 2023. As of March 2025, the total value of outstanding housing loans maintained by the country's financial system stood at EUR 8.75 billion (USD 9.45 billion). At the same time, the relative size of the market, represented by the ratio of outstanding housing loans to GDP at current prices, declined from an estimated 14.8% in 2013 to 12.9% in 2024, remaining notably below the euro area average of 36%.

Data Sources: ECB, SURS.

Socio-Economic Context:

Modest Economic Growth and Consistently Tight Labor Market

While outperforming the euro area overall last year, Slovenia's economy continues to develop at a modest pace, with the real GDP growth decelerating from 2.7% in 2022 to 2.1% in 2023 and 1.6% in 2024, according to the International Monetary Fund (IMF) figures. At the same time, the March 2025 macroeconomic developments review from the Bank of Slovenia notes that last year, conditions for private consumption in the country improved, and, despite the heightened global uncertainty, the economy's performance in the early months of this year appears to have remained solid.

The IMF currently projects the growth to pick up to 1.8% in 2025 and 2.4% in 2026, while the Slovenian Institute of Macroeconomic Analysis and Development (IMAD) has an even more optimistic outlook for 2025, projecting the economy to expand by 2.1%. "Domestic consumption will be a key driver of higher GDP growth this year, in particular continued growth in private consumption supported by rising wages and social transfers, as well as a recovery in investment after last year's decline," said the IMAD's spring forecast of economic trends.

In parallel, headline inflation in Slovenia slowed from 8.8% in 2022 to 7.4% in 2023 and 2.0% in 2024, most recently reported by the SORS at 2.3% in March 2025. Barring shocks, the IMAD anticipates the price growth to be subdued this year in most groups, with services still outpacing overall inflation. Measures related to energy prices and their gradual phase-out are expected to influence inflation fluctuations, with the average inflation level, however, remaining around 2% throughout the forecast period. This view is generally in line with the IMF forecast, currently placing the indicator at 2.6% in 2025 and 2.31% in 2026.

Data Source: IMF.

Despite slower growth, the labor market in Slovenia remains tight, with the seasonally adjusted ILO unemployment rate reported by the SURS at 3.2% in March 2025. Outlining the state of the labor market in the country, the 2024 Article IV Staff Report from the IMF noted a high vacancy-to-unemployment ratio, with several sectors experiencing staff shortages, in particular construction, hospitality, and administrative services, with employment gains primarily attributed to foreign workers.

The latest forecast from the IMAD expects these trends to continue in 2025: "Given the high level of employment and labor shortages, employment growth will be low this year amid moderate economic growth. After stagnating at record levels for most of last year, employment is expected to grow modestly this year, with a potential slight acceleration over the next two years, driven primarily by the employment of foreign nationals." 

In addition to economic conditions, demographic changes also play a role in shaping the labor market in the country, with registered unemployment declining in part due to the increasing transition of the aging population from unemployment to inactivity or retirement.

Data Source: SORS.

Reflecting Slovenia's continued fiscal consolidation, in April 2025, Fitch Ratings affirmed the country's 'A' standing, simultaneously revising its IDR outlook from stable to positive, citing the declining public debt and fiscal outperformance, as well as substantial progress made with reforms to tackle aging-related fiscal challenges.

At the same time, the latest rating action commentary from the agency pointed out several external and domestic factors that could negatively affect the Slovenian economy's growth prospects despite the current generally positive forecasts. "Risks to the forecast include further global trade tensions, weaker-than-expected external demand, and flood-related capex, as well as persistent labor shortages," said Fitch Ratings.

Sources:

1. Statistical Office of the Republic of Slovenia (SURS)
   1. Residential Housing Price Indices, 4th Quarter 2024: https://www.stat.si/
   2. Estimation of the Construction of Buildings and Dwellings, 2023: https://www.stat.si/
   3. Statistics of Building Permits, December 2024: https://www.stat.si/
   4. Statistics of Building Permits, March 2025: https://www.stat.si/
   5. GDP and National Accounts: https://www.stat.si/
   6. Consumer Price Indices, April 2025: https://www.stat.si/
   7. The Monthly ILO Unemployment Rate 3.2%: https://www.stat.si/
2. Surveying and Mapping Authority of the Republic of Slovenia (GURS)
   1. Slovenian Property Market Report, 2024 (SL): https://www.e-prostor.gov.si/
   2. Slovenia Property Market Report, 2023: https://www.e-prostor.gov.si/
3. Government of the Republic of Slovenia
   1. 145th Regular Session of the Government of the Republic of Slovenia: https://www.gov.si/
4. Institute of Macroeconomic Analysis and Development (IMAD)
   1. Spring Forecast of Economic Trends 2025: https://www.umar.gov.si/
5. Housing Fund of the Republic of Slovenia
   1. Press Questions Forbes Slovenia: https://ssrs.si/
6. Bank of Slovenia (BSI)
   1. Financial Stability Review, October 2024: https://www.bsi.si/
7. European Central Bank (ECB)
   1. ECB Data Portal: https://data.ecb.europa.eu/
   2. Key ECB Interest Rates: https://www.ecb.europa.eu/
   3. Monetary Policy Decisions, 17 April 2025: https://www.ecb.europa.eu/
8. European Commission
   1. Economic Forecast for Slovenia: https://economy-finance.ec.europa.eu/
   2. Distribution of Population by Tenure Status, Type of Household and Income group: https://ec.europa.eu/
9. International Monetary Fund (IMF)
   1. Country Overview: Republic of Slovenia: https://www.imf.org/
   2. 2024 Article IV Staff Report: https://www.imf.org/
10. Organization for Economic Co-operation and Development (OECD)
    1. Housing Market Challenges and Policy Options in Slovenia: https://www.oecd.org/
11. Fitch Ratings
    1. Fitch Revises Slovenia's Outlook to Positive; Affirms at 'A': https://www.fitchratings.com/
12. Forbes Slovenia
    1. These are the Rents in the Apartments Owned by the Fund (SL): https://forbes.n1info.si/
13. The Slovenia Times
    1. Backlash as Govt Moves to Curb Short-Term Rentals: https://sloveniatimes.com/
14. Delo
    1. Plan for 20,000 Apartments in Ten Years (SL): https://www.delo.si/
15. Najemniški SOS
    1. Unbearable Unavailability: Extortionate Rents and Discrimination in the Rental Market (SL): https://s3.fr-par.scw.cloud/
16. Pod Črto
    1. Housing: Who Can Afford to Rent in the Slovenian Capital? https://podcrto.si/
17. RTV Slovenija
    1. Gurs: Fewer Houses And Apartments Were Sold In Slovenia Last Year. Prices Rose By Nine Or Ten Percent (SL): https://www.rtvslo.si/
18. Cekin.si
    1. 300,000 Euros for a Home: From a Studio Apartment in Ljubljana to a House in the Countryside (SL): https://cekin.si/
19. Siol.net
    1. Gurs Predicted a Crisis in the Real Estate Market for 2025. Did Market Developments Justify the Predictions? (SL): https://nepremicnine.siol.net/