A number of new buildings are placed on the market; the prices are high, but the price of three to four thousand euros per square meter cannot hold. But it is certain the trend observed today will continue at least until 2020. At the Slovenian Real Estate Development Forum in Ljubljana the investors mainly discussed business opportunities.
The interesting topic of the forum were also the smallness of the Slovenian market, and the predominance of the local investors, which is the cause that the Chinese investors stay away from Slovenia in spite of their aggressive attention to Eastern Europe. Rich individuals take advantage of the construction opportunities in our country, and the domestic insurance companies and pension funds in commercial properties. The trend for the next three to four years is obvious – the prices of apartments are going up.
How much will a square metre in Ljubljana cost by the end of the year, in average? "We expect the prices to settle around € 2,700 or 2,750 per square metre. Such a leap as occurred between 2015 and 2016 is not expected," Maja Ostanek from the consulting firm KF Finance explains.
In average, the cost of new apartments equals 22 annual rents
The number of new residential buildings could diminish in coming years, and the prices of new apartments should somewhat diminish. Presently in average a square metre costs € 2,200. "We expect the growth trend to settle at the secondary market, and then also at the primary market, once the new supply of apartments is known," Ostanek explains.
She also believes that the residential project will not be able to keep the price of € 4,000 per square metre, as the purchasing power is limited.
The KF Finance company analysis shows that the new apartments in Ljubljana are already slightly overpriced, as in average their prices equal 22 annual rents; any price above the amount of 22 annual rents is considered overpriced. By the way, only 2.4% of Slovenian households live in a rented property.