Property prices in Slovenia are higher but we can afford them easier than in 2008
The situation on the real estate market is very vibrant. Property prices in Slovenia are getting higher. This mostly because of good interest rates with the bank loans. The other reason is not enough residential real estate and a different outlook after the pandemic. If you plan on buying a 60m2 apartment in Ljubljana it would cost at least 11,2-times the average net salary in Slovenia.
How did the pandemic influence the property prices in Slovenia?
During the pandemic there was a smaller amount of transactions with real estate. The property prices in Slovenia for commercial real estate remain the same. But the property prices for apartments, houses and land are rising. This is mainly due to the different outlook on home life and also the possibility for working remotely.
Property prices in Slovenia in comparison with the average salary
In the last seven years, the properrty prices in Slovenia rose by about one half on average. During the years of 2007 or 2008 you would need to give at least 14 average salaries to buy an apartment in the measures we wrote about in the start.
But the average salary increased since 2007 by 44%. The best time to buy a property was 2014, because the prices of real estate were at an all-time low. Then, you could buy the same apartment with 10 average salaries.
How do banks influence the prices?
The Bank of Slovenia is now assessing the possible exaggeration of the prices. They are saying that at the moment there is still no reason for fear. The property prices in Slovenia are still within the EU average.
The expenses for getting a bank loan to buy an apartment are now very low. The banks are offering loans with fixed interest rate lower than 2%! The comparison of the loan payments with these interest rates to those in 2007 shows a big difference. In 2007, you had to pay a 41% higher monthly loan payment then now in 2021 for the same amount of borrowed money. Follow our Facebook and Instagram for more updates on real estate in Slovenia.
Investing in real estate is a good choice!
Due to the big demand for residential property, there is a lot of new construction. When the new buildings will be on sale, we expect a fall in the property prices in Slovenia. Many foreigners are considering investing in real estate in Slovenia. It is one of the safest investment as the return rate on renting out a property is very high. In case you consider buying real estate, turn to our legal experts for support. They can check your purchase contracts and give you valuable advice.