Slovaks do not want to rent, they want to own apartments
Slovakia controls an interesting trend in real estate. Slovaks are not too inclined to rent housing and prefer private ownership.
Up to 91% of apartments in Slovakia are privately owned. Within the European Union (EU), Slovakia is second in this ranking, right behind Romania. Slovaks tend to own apartments, the reason being the unavailability of rental apartments.
This follows from the annual report of the international law firm CMS and the global real estate consulting company CBRE.
Restriction of investment in housing
Economic growth and the free economic policy of the states in the Central and Eastern European (CEE) region have led to an increase in the prices of apartments and residential real estate and have significantly limited the possibilities of investing in housing.
According to analysis it is not different in Slovakia either, while the consequence is that living in a sublet is an increasingly popular accessory and this trend doesn’t seem to be changing any time soon. Residential developers consider rental apartments to be an attractive alternative to real estate that is intended for sale.
Double prices
“The surveys speak clearly. Slovakia ranks second in the European Union in terms of the share of privately owned apartments – up to 91%. The need for financing through the Bratislava region, as well as the insufficient supply of apartments, has pushed the price per square meter (m2) to approximately double in the last six years.Ľubor Procházka, business director of CBRE Slovakia, explained.
According to Lukáš Hejduk from CMS, the strategies of investors will undergo changes. “According to everything known, these aspects are significant changes in all European countries. We expect that he will continue to look for the best ways to generate income by converting office space into rental apartments.” he added.
Cheap cities
Unlike other EU cities, according to analysis cities in the CEE region are still considered relatively cheap. Monthly rents for one-room apartments start from 300 euros in Bucharest to 650 euros in Warsaw.
In Bratislava, rent prices are based on the size of the apartments and the main location. Analysis calculated that one-room apartments with an area of 30-40 m2 range in price from 400 euros per month, while the monthly rents of the most expensive apartments in the city center with an area of more than 100 m2 reach 2,500 euros.
Despite the fact that the legislation for the fulfillment of new requirements within the rental housing sector is constantly evolving, still according to analysis favors institutional investors.
Analysis he also points out that in recent years, special regulations have been introduced that are necessary for investors. Based on them, they can use rental contracts for a certain or indefinite period. At the same time, he notes that legislation in the CEE region favors apartment owners.
Source: TASR