2 min.
Editorial Invest in Slovakia
Rapid times, influenced by pandemics, war, rising prices and extreme inflation, raise many questions around real estate. How will this affect demand? Are these factors strong enough to discourage the younger generation from buying or renting property and becoming independent?
The aforementioned negative circumstances do not favour the market, but the statistical data still speak clearly. Although it would seem that sales will decline, according to information published by the portal Startitup 17% more flats in new buildings were sold in Bratislava in 2021 than in the previous year. According to analysts from Bencont Investment, their number exceeded 2,800. Various real estate agencies also report a rising demand for modern apartment rentals. This is dominated by two-bedroom apartments, which are particularly attractive to childless couples and newlyweds. House price growth continues in the second quarter of 2022 (up 6.4%), albeit at a slower pace than at the start of the year. According to NBS analysts, it still cannot be said that the market is cooling down.
Prejudices about the younger generation are spreading in society, saying that the young no longer follow the classical social model. They do not want to work in a 'corporation', sign up for a few years with a bank or build their own background and family. Rather, they say, they prefer the fast life, travelling, working from abroad and freelance life. However, the available analyses show that the desire to own their own home and facilities continues to prevail. Young people continue to need a solid foundation under their feet.
The demand for own housing as well as rentals remains strong even without significant state assistance. In Slovakia, only a relatively small benefit is currently available and only for younger generations. People aged between 18 and 35 can obtain a mortgage for young people, thanks to which it is possible to obtain an advantage in the annual personal income tax settlement of up to EUR 400. In practice, after obtaining a youth mortgage, tax can be reduced by 50% on the amount of interest paid for the year. However, this also involves other restrictions.
Young people are willing to spend more than ever on their own background and independence, and supply continues to lag behind demand in the long term. Many property developers and individuals alike are therefore continuing to look for and create new opportunities for property investment. For example, the planned construction of new housing in Slovakia HB Reavis also announced, long-term oriented to the construction of commercial space.
Owning your own home is still an important stage of life for young people today and the demand for buying and renting apartments is increasing. If you have spare financial resources, but are hesitant to buy a property or the amount is not sufficient, together with a mortgage, to buy your dream property, it is wise to find an investment opportunity that will capitalise on your resources, or at the very least protect against devaluation by high inflation.
