House prices up 11.56% during the year to Q2 2022
Real house prices in Slovakia rose strongly by 11.56% in Q2 2022 from a year earlier, following y-o-y increases of 12.88% in Q1 2022, 18.37% in Q4 2021, 19.52% in Q3, and 20.26% in Q2. In fact, in nominal terms, house prices surged by a whopping 25.52% during the year to Q2 2022 – the highest since Q2 2008.
On a quarterly basis, real house prices increased 1.94% during the latest quarter. Slovak house prices have been rising since 2014.
Demand remains strong.
Despite the pandemic, property demand, both from local and from foreign investors, remains fundamentally strong.
In June 2022, the total outstanding amount of housing loans rose by 12.3% y-o-y to €40 billion (US$39.8 billion), following annual growth of 11.5% in 2021, 9% in 2020 and 9.7% in 2019, according to the European Central Bank (ECB). Despite this, Slovakia still has one of the lowest mortgage-debt-to-GDP ratios in the EU, at about 38.5% of GDP in 2021, far lower than EU 28’s ratio of about 50%.
Rents, rental yields; moderate yields at 4.53%
Bratislava apartment costs are low at around €2,911 per sq. m.
|Slovak Rep: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Bratislava||€ 349,320||€ 1,320||4.53%|
Recent news: The Slovak Republic’s economy grew by 1.7% in Q2 2022 from a year earlier, following y-o-y expansions of 3.1% in Q1 2022 and 1.4% in Q4 2021, as the strong growth in domestic demand, particularly household consumption, was partially offset by a decline in foreign demand. On a seasonally-adjusted quarterly basis, the economy grew by 0.4% in Q2 2022, the same pace as the previous quarter, according to the Statistical Office of the Slovak Republic.
The Slovak Republic’s economy grew by 3% in 2021 from a year earlier, a rebound from the 4.4% contraction seen in 2020. But recently, the European Commission downgraded again its 2022 growth projection for the country to 1.9%, from its earlier forecast of a 2.3% expansion, amidst the ongoing Ukraine crisis.