Residential Property Prices Still Rising in Slovenia, Despite Covid

By , 21 Nov 2020, 12:00 PM Business
Residential Property Prices Still Rising in Slovenia, Despite Covid Flickr - TaxRebate.org.uk, CC-by-0

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STA, 20 November 2020 - The suspension of the real estate services in the spring lockdown has had no impact on property prices since the housing market was swiftly revived after the restrictions were lifted. The prices even went up a bit. The commercial property market has been slower to pick up though, a report by the Surveying and Mapping Authority (GURS) says.

The semi-annual report notes that Slovenia's property market was deeply impacted by the epidemic in the first half of 2020.

Property trade was virtually brought to a halt for two months in spring. There were significantly fewer transactions, however it transpired that the developments have not affected property price trends.

Following May, when most anti-corona restrictions were lifted, the situation soon went back to the pre-epidemic levels.

The prices mostly rose to a certain extent in the first six months of 2020 despite a decline in transactions.

GURS recorded some 13,300 property transactions totalling some EUR 900 million in this period, a more than 25% drop in the number of transactions and down by a third regarding their total value compared to the second half of 2019.

Taking into account the same period last year, that is the first half of 2019, a drop in the number of sales/purchases is also more than a quarter, whereas a decrease recorded in the total value is bigger, by 37%.

The downward trends are not as strong as expected given the epidemic and record figures in 2019, GURS said.

The number of flat transactions totalled some 6,300 in the first half of 2020, down by 28% on the second half of 2019 and 26% on the first half of 2019. The total value of the deals made in the first half of 2020 was EUR 614 million.

The average price of a second-hand flat exceeded the threshold of EUR 1,900 per m2 for the first time at the national level in the first half of 2020, up by 3% on the second half of 2019 and a 6% increase compared to the same period in 2019.

Ljubljana remains a hotbed of record-high flat prices, with the average price of a second-hand flat topping EUR 2,900 per m2 for the first time, a 3% rise compared to the second half of 2019 and up by 5% on the first half of 2019.

The prices went up the most in Kranj in the north where the average price of a resale flat rose by 7% on the second half of 2019 and 6% on the first half of 2019.

The only area where the prices went down a bit on average is the seaside, a trend which is a result of fewer holiday flats transactions, according to GURS.

The average price of a house with land attached stood at EUR 130,000 in the first half of 2020, down by 2% on the second half of 2019 and up by 4% on the first half of 2019.

The most expensive houses on the market are still seen in Ljubljana, where the average price was more than EUR 300,000, followed by the coast, Koper excluded.

The commercial property market has been hit worst by the epidemic, GURS said. Price growth continued to stagnate in this sector, with over 700 transactions recorded in the first half of 2020, down by 42% on the second half of 2019 and down by 36% on the first half of 2019. Their total value was estimated at EUR 93 million.

The impact of the second epidemic wave will depend on the duration of lockdown restrictions and further epidemiological developments as well as on stimulus measures, GURS said, adding that even if the market went through a major crisis, the prices would not plummet anytime soon.

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