In 2019, there was a high rise in demand for property in Slovenia. Due to Slovenia being a popular destination for business and tourism, entrepreneurs saw an opportunity for investments in real estate for short-term or long term-rent. In 2020, there have been a lot of new construction projects in development before the coronavirus epidemic hit the world. Entrepreneurs who are considering starting a business in Slovenia through investments in real estate are now wondering, how the epidemic will affect the market and demand for property in Slovenia.
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In comparison to 2019, what changes did the real estate market experience?
In 2019 and before, there was a very high demand for investments into property. Slovenia and its most notable cities have become a haven for travelers. They have also become interesting for entrepreneurs who were looking to expand their business to Slovenia. Therefore, real estate market in 2019 experienced quite high prices for investments into property in the more touristic areas. Especially Ljubljana and the seaside saw a rise in real estate prices. Mostly, these houses or apartments were offered for short-term rent. The majority were touristic rentals through AirBnB and other portals for reservation of short-term accommodation.
Due to the measures in the epidemic, where many countries closed their borders or limited travel in other ways, tourism saw a temporary standstill. As the majority of these apartments were used for tourist rentals, their owners have decided to switch from short-term rent to long term rent in order to decrease the loss of income they expected. As there is still a high demand for rentals within the working population, offering long-term rent of properties is still an option even during the epidemic.
The realtors in Slovenia also mentioned that they did not experience a decrease in interest for investments to property in Slovenia. But as realtors still cannot carry out viewings, the actual purchase or rent has been delayed. Some have resorted to online viewings but not all have the means or capacities to do so. Whether the epidemic will affect the prices of real estate in the long run, depends when the epidemic ends. The rent prices have already started to decrease, whether the selling prices are currently unchanged. But the shift can occur in the longer run. It will depend on the duration of the epidemic and purchasing capabilities of investors.
Investments in real estate in Slovenia are still possible during the epidemic
In normal times, it was more difficult to gain access to the suitable and financially accessible property. This was due to a lot a competition for each individual property. Realtors are also emphasizing that while personal viewings are still not possible, they can still carry out all other procedures for investments in property. The transfer of ownership does not require your physical presence. The authorized realtor can arrange the purchase at the notary. So, if you would partake in an online viewing and choose a property, you can still do the purchase before you travel to Slovenia.
Also, investments into property would require you to register a company first. Non-EU citizen cannot invest in property without having a company in Slovenia. Company registration is possible during the epidemic, as the courts and VEM points are working normally in this time. Our VEM point also offers the possibility to do the company registrations remotely. These possibilities will last only for the limited time of the epidemic. Therefore, we recommend that you start the procedures soon. This will enable you to have the best options for your investments into property in Slovenia before the market becomes too saturated again.
Are you a business owner in Slovenia or looking to register a company here? Are you having trouble understanding what is best for your business? We are organizing webinars to understand company registration and business immigration to Slovenia. Apply here or call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on [email protected]