Sharp Rise in Apartment Prices in Bratislava
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Loading... - Jerome Makris
- 08 Nov 2024
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The stagnation period of the Bratislava real estate market appears to be over, with significant increases in apartment prices reported in recent months. According to the latest data from Bencont Investments, the market has experienced the most notable rise in the prices of older apartments in the last two years, and analysts predict that this upward trend is likely to continue.
The real estate market in Bratislava faced challenges over the past two years due to rising mortgage interest rates, inflation, and the impact of the war in Ukraine. These factors led many potential buyers to postpone their purchasing decisions, effectively freezing the market. In the third quarter of 2023, the prices of second-hand apartments in Bratislava increased by 5.4% compared to the same period in 2023, marking a significant recovery from the lowest price points. The average price per square meter rose to €3,748, reflecting a 9.97% increase year-on-year.
Prices grew across all monitored segments, with partially renovated apartments seeing a 5.68% increase, while apartments in their original condition and completely renovated apartments experienced approximately a 3% rise. The average absolute price of apartments increased by 18.75% year-on-year, with the average apartment selling for €252,679. Additionally, the average area of apartments sold also increased by 3.89%, reaching 67.38 square meters. This growth in both price per square meter and average area contributed to the overall increase in apartment prices.
In terms of district variations, the Staré Mesto borough saw a 5.8% rise in prices for older apartments, while the Nové Mesto, Rača, and Vajnory boroughs experienced a 6.5% increase. Analysts anticipate a drop in mortgage interest rates, which could further stimulate the market. Unlike new apartments, older apartments are not affected by the increased VAT, giving them a competitive edge in pricing.
The rental market is also experiencing upward pressure, with the average rent per square meter, including utilities, rising to €16.67, an 8% increase year-on-year. Overall, the Bratislava real estate market is showing signs of recovery, with significant increases in apartment prices and rents. As the market adjusts to changing economic conditions and potential decreases in mortgage interest rates, both buyers and investors may find new opportunities in the evolving landscape. The continued growth in prices, particularly for older apartments, suggests a robust demand that could shape the market in the coming months.
