Excellent Opportunity for Property Investors
Along with economic expansion, the property market in Slovakia has also seen substantial growth. Global Property Guide has declared Slovakia to be a good opportunity for overseas property investors, with low rental income tax and no capital gains tax on long-term property holdings. Slovakia is one of Europe's most attractive real estate investment propositions.
Property Market Slovakia
With annual price hikes of 15% and rental yields of between 8% and 10% in its capital, Slovakia already ticks plenty of boxes for successful overseas property investment. With the availability of mortgages for non-resident home buyers, property investment in Slovakia is even more attractive.
Property Investment in Bratislava
Real estate prices in Bratislava increased significantly just before Slovakia's entry into the EU, in May 2004. Prices in Bratislava are still low when compared with Prague or Budapest, offering excellent potential for capital appreciation in the medium to long term, according to CB Richard Ellis. Global Property Guide estimates average rental yields across the country at 9.39%, with central Bratislava apartments yielding between 9.5% and 11% and yields for new houses in the suburbs approximately 8% and 9.2%.
Substantial Growth in Property Prices
Bratislava has recorded impressive property price growth over recent years, with the National Bank of Slovakia stating that prices have risen year-on-year by 21.3%, and overall by 104% since 2002. Savills, in its Global Residential Market Review 2007, also noted the strong price rises in the country. "New market economies, such as new EU accession countries in the Baltic states and Slovakia are currently experiencing some of the strongest price rises [globally].
Property Hot Spots in Slovakia
Ski Resorts:
Ski resorts in Slovakia offer property with fairytale charm and a reputation for the cheapest skiing in Europe. With some of the highest mountain resorts in central Europe, rising to an altitude of 2655 meters, Eastern Slovakia's High and Low Tatra mountains boast fantastic skiing available for four to five months of the year. Property investors and holiday home buyers attracted to affordable property prices can still pick up some amazing bargains with good rental potential.
Bratislava
When it comes to sound buy-to-let investments, Bratislava - Slovakia's capital city - is a winner all the way. Bratislava is one of the rare places offering you exceptional capital growth potential AND increase in rental income at the same time. Recently ranked by Knight Frank as "the place to go for rental property", Bratislava property investment is currently one of Central Europe's letting hot spots.
Growth in Tourism Provides Excellent Buy to Let Investment Opportunities
Since independence in 1993, tourism in Slovakia has seen significant growth, despite the country's relatively underdeveloped tourist industry in comparison with its neighbours. The government's strategic development plan 'Tourism Development Strategy of the Slovak Republic until 2013' highlights its commitment both to addressing the structural problems within the industry and to developing a sustainable tourism industry (Source: Mintel International, August 2006). According to the Statistical Office of the Republic of Slovakia, the first four months of 2007 recorded 659,298 tourist arrivals and 2,036,717 overnight stays, representing a solid 8% increase, when compared to the same period in 2006.
The buy-to-let market is becoming very popular, driven by the increasing demand for holiday accommodation. With low-cost airlines delivering holidaymakers from the UK and Europe to the main Bratislava and the various holiday resorts, investors can hope to secure good yields from rental properties.
Open Skies Policy
At the same time, the country has benefited from increased availability of budget flights to all parts of Europe. Air connections to Slovakia have almost doubled year-on-year, with international connections to Bratislava airport from cities throughout western and Eastern Europe, as well as the Middle East. There are also regular scheduled flights to the Tatras Mountains, Kosice and central Slovakia.
Slovakia Weblog
