New Record Prices for Residential Real Estate and Building Land

In the Slovenian real estate market, the trend of decreasing the number of sales of all types of real estate continued in the first half of the year, while their prices rose again, according to the semi-annual report of the Surveying and Mapping Authority of the Republic of Slovenia (Gurs). Residential real estate prices have reached a record level for the fifth consecutive half-year. After two years of stagnation, the prices of land for building residential buildings have also reached a record level.

According to preliminary data, nearly 12,000 sales contracts were concluded in the first half of the year, with a total value of around 1.2 billion euros. The number of concluded contracts was 15 percent lower, and their total value was ten percent lower than in the second half of last year.

Compared to the second half of 2021, when the number of real estate transactions peaked after the epidemic, the number of sales of residential real estate and buildable land in the first half of this year was already about 45 percent lower.

»The further decrease in the number of transactions can be attributed on the one hand to the insufficient supply of new apartments and used apartments in better locations, and on the other hand to the overvaluation of used apartments in worse locations or of poorer quality. Above all, it is due to the fact that a larger part of the population, or those who are solving their housing issue, can no longer afford the market purchase of an apartment or a residential house,« they note at Gurs.

A larger part of the population, or those who are solving their housing issue, can no longer afford the market purchase of an apartment or a residential house, note the Surveying and Mapping Authority of the Republic of Slovenia. PHOTO: Matej Družnik/DELO

If there are no shocks, real estate will become more expensive

Real estate prices are still rising, as there are not enough apartments in the largest cities, while the wealthier are investing their surplus money in residential real estate. »This demand, in addition to record savings of the population, has recently been increased by the lowering of interest rates on housing loans, which reduces the costs of financing real estate purchases with loans. Therefore – if there are no major domestic economic or new foreign political shocks that would affect our economy – no major changes in real estate price trends in Slovenia are expected in the near future,« they add at Gurs.

In the first half of the year, the average price of a used apartment increased by 340 euros per square meter compared to the same period last year, reaching 2890 euros per square meter. The most expensive apartments are still in the capital, averaging 4370 euros per square meter, which is 490 euros more than in the first half of last year.

Following Ljubljana are apartments on the Coast (4260 euros per square meter), in the northern and southern suburbs of Ljubljana (3620 euros and 3410 euros), Kranj with its surroundings (3190 euros), Maribor (2330 euros), and Celje (2180 euros).