What is happening with the real estate market in Slovenia during coronavirus outbreak? The outbreak affected many fields of business in Europe, with tourism and hospitality being one of the most affected ones. As real estate market is also very connected to those fields, we have investigated how the current situation affected buying and renting real estate in Slovenia.
Are you a business owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Are you having trouble understanding what is best for your business during this time? Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on [email protected]
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Real estate market before coronavirus outbreak
In 2019, the real estate market in Slovenia was blossoming. There were a lot of new premises for commercial and residential use being built with a wide variety of used houses and apartments also being sold and rented. The most visible rise in prices was with used apartments and family houses, especially in Ljubljana. The all in all rise of prices in 2019 ended up at 8,5%, with 10,8% rise of used apartments outside of Ljubljana. Especially residential real estate was a very popular form of investment, as the rise of tourism also boosted short-term rent of property trough AirBnB and Booking.com.
How did coronavirus outbreak affect the prices and the real estate market itself?
The most visible effect of the virus spread was the decrease of tourism due to governmental measures and closed air connections to contain the spread. Properties for short-term rent experienced the biggest blow. Also, as the real estate brokerage business activity fell under the governmental decree of temporary closure, no new viewings by realtors were possible. Outside construction did not fall under this decree, so building new commercial and residential property is still ongoing. Realtors are concluding ongoing deals as notaries and courts are still providing services. Some of them very even innovative enough to offer online viewings of listings.
Due to these facts it is very likely that the prices of real estate will decrease in the coming months. Due to suspended business activity, the prices and real estate market itself are at a standstill but in the coming weeks and months the effects will also influence the final prices for this quarter. Knowing this, following the Slovenian real estate market can present itself as a good business opportunity. The decrease in prices and finished new constructions will enable investors to buy property at a lower rate. But as soon as the most restrictive measures pertaining to tourism will no longer be in place, Slovenia is still expected to be a very sought-after tourist destination, with possibility of short-term and long-term rent.
Converting business from short-term rent to long-term rent
Even in this time, it is possible to switch from offering short-term rent options to long-term rent. In Slovenia, there are still many people looking for longer accommodation. The absence of tourists might enable the previously short-term rent providers to switch to long-term rent. That way, they will maintain income in the transitional period. If your main business activity was related to short-term rent it is still possible to apply for governmental measures, providing your company fulfills the conditions for the application.
Are you a business owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Are you having trouble understanding what is best for your business? Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on [email protected]