We have experienced the highest growth of property prices in the last 10 years. From Q1 2021 until Q3 2022 the average price for m2 increased for more than 20% interannually. We experienced such a steep growth in years 2007 and 2008. [1]
We have experienced decreasing of property prices, when the average price for m2 in 2022 and Q2 2023 decreased by 4%. At the same time Statistical Office announced the freeze of implementing property prices, where we could see the interquarter decrease of property prices of new houses and flats, was subdued by the increase of prices in older properties. Interquarter decrease of 2,8% was experienced mostly by the final property prices of the new properties, on the other hand, the prices of already existing properties have increased by 0,9%.[2]. Medzikvartálny pokles – 2,8% zažívali predovšetkým konečné predajné ceny nových nehnuteľností, pričom ceny existujúcich nehnuteľností zaznamenali mierny nárast + 0,9%.
How this phenomenon has influenced property market in Slovakia?
A sharp increase in the cost of buying real estate results in a decrease in buyers. The drop in demand created downward pressure on real estate prices. Buyers have more space and time to choose their future investment. We do not consider the market development in 2021 and 2022 to be so-called a healthy market because buyers had minimal, if any, room to negotiate prices and terms. Today, buyers significantly improved their position vis-à-vis sellers. You may also encounter the possibility of communicating conditions and changes in contractual relations with developers, which was impossible in the past. However, sellers today have to choose a better and more professional sales marketing strategy than in previous years.
Will the prices be still decreasing?
Nowadays, this is the most common question clients ask us. Unfortunately, we are unable to answer so simply. Everything depends on the market development, as well as on the property, in which you are interested in. The development of prices and the purchase-sell behavior are constantly changing depending on many factors, such as if the property is new, older or after reconstruction, also on location and so on. What we can say is, that we have been experiencing the pressure to decrease the prices of some types of properties, as well as increased interest if clients to purchase. If you are planning to purchase, refer to our article „TO WAIT OR TO BUY NOW?“, where we shortly explained your offers and basic information. Do not hesitate to contact us and we prepare a tailor-made offer and prognose for your individual case FOR FREE.
Unfortunately, under these conditions regarding finance and property market, most % of the population is unable to gain a mortgage. Which conditions you must fulfill for gaining mortgage? You will find out in the next article!
Team ProFin Experts. Translated by Barbora Zemko Zuzaniaková
