Real estate prices development in Bratislava and its surroundings

Following article will cover the real estate prices development in Bratislava and its surroundings. The Bratislava Region is the most efficient region in the economy of the Slovak Republic. According to Eurostat data, in 2017 the Bratislava Region reached the level of GDP per capita in purchasing power parity at 179% of the European Union average, which ranked it eighth in the economic performance of the regions of the entire Union. The Bratislava Region is also the center of Slovak industry and the European center of the automotive industry.

The Bratislava region consists of Bratislava, the capital of the Slovak Republic, and 6 cities – Malacky, Stupava, Svätý Jur, Pezinok, Modra, Senec, and 66 surrounding municipalities.

The Bratislava Region is the most significantly growing real estate market in Slovakia with a constantly growing demand for new residential, industrial and other commercial real estate. At the same time, the population has been growing here year-on-year since 1990, and GDP growth is by far the fastest among the regions of Slovakia.

In Bratislava alone, in 2Q this year the real estate prices of new dwellings averaged over EUR 4,000 per square meter for the first time (average price of dwellings is EUR 2,844 per square meter – new buildings + older dwellings), while the average apartment price increased to EUR 248,000 with VAT. Compared to 1Q this year, this is an increase in prices of new buildings by EUR 310 per square meter, despite an increase in the supply of new flats to 2485 at the end of June 2021 (compared to 2209 flats at the end of March 2021) and high sales in 1Q, when 997 flats were sold. .

In the first half of 2021, there was also an increase in the volume of commercial real estate transactions, mainly through the acquisition of a 60% stake in the Aupark Bratislava shopping center worth up to EUR 270,000,000 by Wood & Company (total purchase price is EUR 450 million). The total volume of transactions in commercial real estate in the first half of the year reached 478 million. EUR.

Real estate prices in Bratislava are generally rising mainly due to rapidly growing demand, which developers are not able to satisfy with the offer due to the lengthy process of obtaining building permits. The reaction of the developers is to move the projects to the outskirts of Bratislava and the surrounding localities within driving distance to Bratislava (basically the entire Bratislava region). According to data published by the National Bank of Slovakia, the average price of residential real estate in the Bratislava Region reached EUR 2,579 per square meter in 1Q (flats, family houses, and villas).

As the Bratislava region is directly adjacent to Austria and Hungary, before the pandemic there was great interest in construction in the border areas – in the villages beyond the Austrian and Hungarian borders.

Real estate prices, especially for housing, were lower than in Slovakia, the process of obtaining a building permit was shorter (in Slovakia the average time needed to obtain a building permit is 300 days, while in Austria 222 days and in Hungary only 193 days). However, the pandemic stopped this trend as it placed a heavy burden on residents and companies from border areas when traveling to work across borders (frequent testing, delays, and border checks). This also increased the interest in real estate projects in other towns and villages in the Bratislava region.

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