Trend: house prices up 5.27% y-o-y in 2018

House prices in Slovakia rose by a robust 5.27% during 2018, from y-o-y rises of 2.43% in 2017, 5.95% in 2016, 1.65% in 2015 and 0.29% in 2014. During the latest quarter, residential property prices were up 1.99% in Q4 2018.

Analysis: Demand remains strong.  

Property demand continues to rise both from local homebuyers and foreign investors, according to local property experts. 

In December 2018, the total outstanding amount of housing loans rose by 11.4% to €28.27 billion (US$32.1 billion) from a year earlier, according to the European Central Bank. Despite this, Slovakia still has one of the lowest mortgage-debt-to-GDP ratios in the EU, at about 31% of GDP in 2018, far lower than EU 28’s ratio of about 50%.

Rents, rental yields; moderate yields at 4.47% 

Bratislava apartment costs are low at around €3,098 per sq. m. 

Slovak Republic: city centre apartment, buying price, monthly rent (120 sq. m)
  Buying price Rate per month Yield
Bratislava € 371,760 € 1,384 4.47%

Recent news: Strong economic growth. The Slovak economy was estimated to have expanded by 4.2% in 2018, up from an annual growth of 3.2% in 2017, according to the European Commission. Economic growth is projected at 4.1% this year.