Housing prices are the highest in history in Slovakia
The National Bank of Slovakia published the latest figures for the first quarter of the year 2020 and records are falling again. The average property price in Slovakia is based on 1 671 EUR per square meter.
Compared to the first quarter of last year, it is 132 euros more, which is a year - on - year increase in 8,6%. Analysts from the NBS pointed this out, that this is one of the highest year-on-year growths. Prices rose more sharply for all types of apartments. At the same time, prices rose in all regions except the Prešov region. There, they recorded a quarter-on-quarter decline in the level 3,3%. On the contrary, when comparing recent quarters, prices rose the most in Banská Bystrica (12,1%), Žilinskom (7,1%) and Košice (5,5%) end. The Bratislava region continues to have the highest prices, where flats are sold for an average of € 2,231 per square meter. An even more significant increase in prices can be observed in the year-on-year comparison. Prices in the Banská Bystrica Region increased by 14.2% during the year, in Trenčín by 14.5% and Žilina even by 16.5%.
Deteriorated housing affordability
Logically, there has been a deterioration in housing affordability in all regions except Prešov. "As the Prešov Region was the only region with negative quarter-on-quarter growth and at the same time achieves relatively higher wage growth in recent quarters, the observed development was expected,NBS analysts explain. They also regularly evaluate the risk of a real estate bubble. Currently, prices are in the rising zone. The numbers indicate, that prices are in line with economic developments. However, analysts point out the possible risks associated with the coronavirus epidemic. Statistics captured only the first two weeks of the pandemic crisis. Analysts point to this, that if the current pandemic did not have a significant impact on property prices and at the same time significantly affected the basic indicators of economic development, it would create an environment for the increase of values signaling the emergence of a real estate bubble.