The Bratislava real estate market was marked by reduced activity in the summer: Average price growth slowed to almost zero – Topky.sk

On the supply side, the prices of vacant apartments stabilized compared to the second quarter, the number of vacant apartments increased. This is stated by analysts from Bencont Investments in connection with the development of prices and the market of new apartments in Bratislava in the third quarter. At the end of September 2022, there were 2,418 vacant apartments on the Bratislava market with new buildings. Compared to the second quarter of 2022, according to analysts, the supply increased by 33%, while in a year-on-year comparison, the number of vacant apartments increased by 13%. The average price of vacant apartments was 4,899 euros per square meter (m2) including VAT. This represents a year-on-year increase of 20%. Compared to the second quarter, however, the price of vacant apartments stabilized with a growth of only 0.4%. Photo gallery (4) Source: SITA/Dušan Hein The average absolute price remained at the level of 301,000 euros. The supply of new buildings increased mainly in the districts of Bratislava IV, Bratislava III and Bratislava V. A significant quarter-on-quarter increase in the average price above 5% occurred only in the districts Bratislava II and Bratislava III, as a result of the arrival of more expensive apartments in two projects with a premium location. From the point of view of the interior area of ​​the apartments, the analysts noted a decrease in the average area to 61.92 m2. Furthermore, the trend of building smaller apartments, which are more affordable in terms of absolute price, continued. This was especially true for the new offer, where the average area of ​​the apartments reached 57 m2. The average absolute price remained at the level of 301,000 euros including VAT, which compared to the second quarter meant stabilization of prices. Photo gallery (4) Illustration photo
Source: Getty Images Realization prices increased by 4.4% compared to the second quarter Analysts record 247 apartments sold during the third quarter of 2022. In a quarter-on-quarter comparison, the number of apartments sold fell by 50%, compared to the summer of 2021 by 61.5%. Despite significantly lower sales, the price of sold apartments continued to rise to the level of 4,611 euros per m2 including VAT. Compared to the second quarter, the realization prices increased by 4.4%, they increased by 19.5% year-on-year. The prices of sold flats thus trailed behind vacant flats, when flats with a below-average price are gradually being sold out of the offer. Photo gallery (4) Illustration photo
Source: Getty Images According to the chief analyst of Bencont Investments, Rudolf Bruchánik, the sharp drop in the number of apartments sold in Bratislava corresponds to developments in other countries. “With a sharp drop in demand, the question arises again whether there will be a collapse in apartment prices. On the one hand, this risk increased if the reduced demand for new housing was a long-term issue, while the supply would continue to grow,” he concluded. In Bratislava, there are many buyers with a large volume of own resources. However, according to him, several factors speak against the decline in apartment prices. The first is the normal level of mortgage rates, the second is the increase in input prices, and the third is the still limited supply of new apartments. Another factor is that even though the demand for mortgage-financed real estate has slowed down, there are many buyers in Bratislava with a large volume of own resources who will not be significantly affected by inflation or rising rates. “Because of these factors, we do not expect a drop in real estate prices, but at the same time we think that high inflation, the energy crisis and a general negative mood in the economy will prevent a significant recovery in demand. For the next year, we therefore expect a halt in the growth of new construction prices, or a drop in the annual growth rate to a level of up to 5 %,” Bruchánik evaluated. The Bratislava real estate market was marked by reduced activity in the summer: Average price growth slowed to almost zero