STA, 7 January 2019 - The business newspaper Finance speculates about real estate market trends in Slovenia in Monday's editorial, finding in a retrospective that the best time to buy property is over.
In the headline the paper quotes a real estate agent who says that he would have bought everything a few years ago had he known how the market was going to turn.
The paper notes that after a period of re-awakening prompted by favourable housing loans and banks' venturing into property auction lending, a period of "real-estate frenzy" followed.
One example is an auction of flats in the Savski Breg estate in the Ljubljana Črnuče borough [see map] in 2016 at which the most expensive item, a five-bedroom flat measuring more than 100 square metres plus a 30 square metre terrace and two parking places, was sold for EUR 180,000, VAT included.
A much smaller, 3.5-bedroom flat, on the same estate is listed for sale today at more than EUR 200,000, the paper notes, adding that the market will tell whether the price is realistic.
"Looking back, the best time for buying real estate is over (...) But there is still demand, in particular for new apartments in the capital. This is part of the reason why many private investors have been announcing new housing projects."
The paper has calculated that about 1,500 new apartments will hit the Ljubljana market in a year or two.
However, the paper also calls for caution. "Warnings coming from business are not promising. Some are talking about the economy's cooling and the pessimists are even talking about a new crisis looming."
The paper says that market developments will depend on the price of loans and on whether people will still have jobs to repay loans.
It also notes that uncertainty may affect demand, advising extra caution to investors who say they will be offering buyers above-standard apartments, which it says will be the first that people will give up in case of a crisis.
All our stories tagged “real estate” are here