STA, 5 November 2018 - A study presented in the capital on Monday shows that apartments in Ljubljana are becoming increasingly out of reach for an average household due to several factors. The average age of apartments is increasing, as there are too few new housing projects, while the rental market is unregulated, the authors of the study warned.
Carried out by the Ljubljana Faculty of Social Sciences and the Institute of Spatial and Housing Policies, the survey is based on statistical data, an on-line survey and interviews with experts in real estate.
It shows that the average age of apartments is increasing and becoming inadequate considering the structure of the population, as the number of single or two-member households is going up due to the population ageing.
Despite this fact, the prices of apartments in Ljubljana continue to grow and apartments are becoming increasingly hard to afford.
According to the study, the prices are growing at a faster pace than wages, with the average prices increasing by 26% in the 2011-2017 period, and wages increasing only by 5%.
Špela Perner of the institute noted that in 2014, 84 average monthly wages were needed to buy a 50-square metre apartment in Ljubljana, with his number increasing to 101 in 2017.
Only 16% of the apartments in the capital were built after 1991 and an average resident of Ljubljana has less usable living space than the average Slovenian.
More than half of the 900 surveyed people would like to live in a different apartment, mostly because they believe their apartments are too small, they want to be independent from other household members, because they are too expensive or inadequate.
The study also shows that apartment construction significantly lags behind the growth of population. Between 2008 and 2017, the number of residents in Ljubljana was up by 15,500, while the number of apartments was up by 3,300.
The authors have estimated that the apartment shortage in Ljubljana in 2025 will stand at 16,000, noting that the local authorities have not been investing enough funds in housing, even though they invested more than other municipalities do.
The number of non-profit apartments is also too low considering the number of people eligible, with the local authorities being forced to subsidise the leasing of such apartments at a 40% rate.
The authors have thus recommended to the Ljubljana Municipality to demand from the state to take certain measures, including additional taxation of empty apartments and stricter supervision of the rental market.
The municipality should earmark more funds for the construction of public non-profit apartments, support the development of housing cooperatives and prevent apartments becoming an investment, including by limiting short-term rentals to tourists.
Harsh winters, the need for repairs, and poor infrastructure turned out to be nasty surprises for those who bought from afar.
STA, 25 September 2018 - Real estate prices continued to rise in the second quarter of the year, but data released by the Statistics Office on Tuesday also show that the lowest number of new housing units on record have been sold in this period.
STA, 18 September - Several land transactions made by the Bank Assets Management Company (BAMC) are under police investigation and subject to an audit, including the sale of land for a plant of the Japanese Sumitomo Rubber Industries, news portal Siol.net reported on Tuesday. BAMC later said it was not a suspect and was cooperating with the investigators.
STA, 13 August 2018 - The Slovenian real estate market keeps booming after another record-breaking year in terms of transactions and prices in 2017. As a result, the construction of new apartments is in full swing around the country. The central bank sees no signs of risks to financial stability as yet.
STA, 2 August 2018 - Last year was a record year for the Slovenian real estate market, with some 36,000 deals being made, according to a report by the Surveying and Mapping Authority. Sales reached EUR 2.3bn in total, matching the record amount from 2007.
HETA Asset Resolution, a wind-down corporation ultimately owned by the Republic of Austria, is handling the sale of Delamaris, a prime touristic development project located next to the ancient fishing and trading port of Izola. It’s a town full of art galleries, artisan stores, cafés and gourmet restaurants, and one that still remains a relatively undiscovered tourist destination on the Adriatic.
STA, 13 July 2018 - Commenting on the Ljubljana real estate market in Friday's commentary, the business newspaper Finance says that the Statistics Office, the central bank and the Surveying and Mapping Authority (GURS) do not give sufficient data on the situation in a time when it seems that a new bubble is being inflated in the capital.
STA, 22 June 2018 - Housing prices in Slovenia rose by 4.4% in the first quarter of the year compared to the final quarter of last year and by 13.4% year-on-year, the Statistics Office said on Friday. Up the most were the prices for new housing units, by 7.6% and 24.7%, respectively.