It appears the Slovenian residential real estate market is on the rebound; however, the two regional ratings firms are in conflict over the numbers. The Statistical Office of the Republic of Slovenia uses data collected from tax collectors and notaries to show prices going up, including in the capital of Ljubljana, while real estate portal SLONEP reports that second-quarter prices are down across all property classes in the capital. Market observers believe the data mishmash means all parties are on hold, with buyers waiting for prices to go down and sellers feeling their asking prices are fair. Meanwhile, demand for coastal properties is increasing, especially among foreign buyers. For more on this continue reading the following article from Global Property Guide.
The house price index published by the Statistical Office of the Republic of Slovenia (SORS) rose 4.11% during the year to the first quarter of 2011, the highest rise since the financial crisis. When adjusted for inflation, house prices increased by 2.34%. The data is largely collected from notaries and the tax administration.
In Ljubljana, the capital, apartment prices were up 4.12% year-on-year to Q1 2011 while the rest of Slovenia experienced a price fall of 0.64% over the same period.
By property type, nationally:
• Existing flats rose 0.96% year-on-year to Q1 2011
• Existing family houses fell 0.27%
• Newly built flats rose 8.70%
• Newly built family houses rose 6.37% over the same period.
During the latest quarter, house prices rose an impressive 4.66% nationally, or 4.82% adjusted for inflation, according to the Statistical Office.
However SLONEP, Slovenia’s most comprehensive real estate portal, reports that over the year to end Q2 2011 average prices per square metre of apartments in Ljubljana fell by 3.06% in real terms, across all classes (from studio type, 1-, 2-, 3-, 4-, 5 rooms or more). Price increases were recorded only for 4 room apartments at 1.93% year-on-year, inflation-adjusted.
During the year to end Q1 2011, the number of transactions fell 18.56% to 1,623, suggesting a wait-and-see approach by sellers reluctant to lower prices, and buyers who think prices will drop further. According to Eva Jakopin of Elite Property Slovenia, Slovenian buyers are hesitant buyers; those that are serious take up to six months to make the decision to buy.
However properties along Slovenia’s coast have seen increasing demand from foreigners. Foreigners discovered how picturesque Slovenia is after the country’s accession to the European Union (EU) in 2004.
This article was republished with permission from Global Property Guide.