Property Prices in Slovenia Maybe Making a Comeback
06 September 2011
It looks as if property prices in Slovenia may finally be recovering, even though the evidence is somewhat conflicting. According to the house price index which is published by the Statistical Office of the Republic of Slovenia, prices increased by 4.11% in the year ending the first quarter of 2011. A growth of 2.34% after inflation (in real terms).
Apartment prices in Ljubljana, the capital of Slovenia, increased by 4.12% year-on-year to the first quarter of 2011, while prices in the rest of Slovenia fell by 0.64% during the same period. Nationally prices of existing flats increased by 0.96% year-on-year, while prices of existing family homes fell by 0.27%. Prices of new build flats increased by 8.7%, while prices of newly built family homes increased by 6.37%. According to the Statistical Office, house prices rose by 4.66% nationally, or 4.82% when adjusted for inflation.
These figures look pretty good, but according to SLONEP, Slovenia's most comprehensive property portal, the average price of apartments to the year ending in the second quarter of 2011, fell by 3.06%, with only four room apartments registering a 1.93% increase. They also found that the number of property transactions decreased by 18.56% in Q2. The portal put this down to buyers reluctance to purchase for fear of further price drops, and not helped by sellers reluctance to drop prices.
Apparently Slovenian buyers are somewhat slow to make up their minds, with most taking around six months to decide to buy. Properties along the coast are proving particularly popular, as many foreigners are now discovering how pretty the country is following their accession to the EU in 2004.