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| Since 2010, real estate prices in Slovakia have more than doubled. |
| Bratislava, 22.05.2026 |
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| Real estate prices in Slovakia have increased by 110% since 2010, and in neighboring Czech Republic by 158%. According to Eurostat data, both countries are among the European countries where housing has become the most expensive. In the entire European Union (EU), real estate prices increased by 62% in the monitored period, reported the online investment platform Portu.
The worst situation is in Hungary, where housing has become more expensive by 291%. In addition to Central European countries, the Baltic states are also in a bad situation with growth of over 150%. The opposite situation was in Italy, where prices even fell, while in Finland they stagnated.
"The real estate market of the old continent can be divided into two groups in terms of price development. The first group includes Central and Eastern European countries with dynamically growing prices. The second group includes more stable or stagnant markets, especially in Western Europe," said Portu analyst Marek Malina.
The short-term development of housing prices in recent years points to the dominance of structural factors over the short-term cycle. “In 2022 and 2023, real estate prices fell in several European countries, which responded to the rise in mortgage interest rates and the deterioration in the availability of financing,” he explained.
This was reflected in a decrease in interest in new housing, which logically had to be reflected in its pricing. “This impact was particularly severe in Slovakia, where mortgage interest rates were among the lowest in the European Union, but they rose sharply in the following years,” Malina pointed out.
For example, in 2021, according to data from the National Bank of Slovakia (NBS), the average interest rate on new mortgages with a fixation of 1 to 5 years reached 0.97% p. a. A year later, it was more than double - 1.95%, in 2024, average interest rates with a given fixation rose to 4.10%. In the following period, a decline below 4% began.
"However, the US war against Iran reversed this positive trend. Fear of rising inflation forced central banks to approach basic interest rates more cautiously. As a result, commercial banks in Slovakia have already increased the price of mortgages in several cases. This is bad news for households," said the analyst.
According to Eurostat, the gap between the price of housing and rents is also widening. While housing has become more expensive in the EU since 2010 by 62%, rents by 30%. Subletting in Slovakia went up by 33%, in the Czech Republic by 69%.
The rapid rise in real estate prices is reducing its availability, especially in larger cities. According to the NBS, real estate prices are gradually moving away from their equilibrium state. Last year, housing became more expensive than other goods and services for the first time in the last three years, outpacing the growth in household income. At the same time, households began to take on more debt, calculated as salaries.
The low level of new apartments under construction and approved for construction is not enough to satisfy demand. Many people are moving to regional cities, which is increasing the pressure on housing prices. According to the Bratislava Metropolitan Institute, the capital will need over 123,000 new apartments by 2050.
"Especially in large cities, it is therefore necessary to constantly reckon with rising prices. Although the countryside is depopulating to a certain extent, this does not apply to cities like Bratislava. Unless there is a drastic increase in the pace of construction, which does not yet seem likely, buying new housing will be one of the biggest financial challenges facing people in Slovakia," added Malina. According to him, they should also adapt their financial behavior and the creation of long-term savings, which should not be underestimated.odkaz na stránku |
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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