Buyers in the capital are steadily driving up demand for apartments, due mainly to rising prices. The supply of available apartments in new buildings, including the secondary market, fell by 14% against the second quarter according to transactions figures from the Herrys real estate agency.
The constant growth in real estate prices in Bratislava has caused a panic increase in demand, with the third quarter of 2021 seeing as many apartments sold as came on the market. Due to this low supply, combined with higher input costs such as energy and building materials, and still affordable financing, prices are expected to continue to rise.
There are roughly 1 800 apartments currently unsold in projects under construction, of which only about 60% are for sale. The most unsold apartments in projects under construction are in the Bratislava I district, with the least in the Bratislava IV district. The number of vacant apartments decreased by 4% compared to the same period last year, yet by 14% against the previous quarter.
Sales of apartments in new buildings have increased by 15% against a year earlier, with Herrys real estate agency registering a 300% y/y increase in interest in them. The third quarter saw the sale of 584 apartments in new projects in Bratislava. Popular projects are those in the middle lower and middle segment, which have launched sales or a new stage of sales. However, there is also huge demand for projects in the new downtown, with prices per square metre reaching €8 000 incl. VAT, thanks mainly to the attractive location and good prospects for long-term value retention.
Supply varies from day to day, price developments are difficult to predict.
Herrys data shows that real estate prices have risen by 16% since the start of the year. Up to a quarter of the current offer of apartments are sold at an average price of 4 800 €/m2 excl. VAT. Under these circumstances, further price developments are difficult to predict.
The secondary market is seeing demand mainly for two-bedroom apartments.
The transactions conducted by the real estate agency HERRYS show that up to 50% of the apartments sold on the secondary market in the third quarter were two-bedroom apartments, with three-bedroom apartments accounting for 36% of sales. The average floor area of apartment was 67 m2. The most popular location was Bratislava III, especially the Nové Mesto locality. While 60% of clients financed the purchase of an apartment by mortgage, up to 40% of clients used solely their own funds. The average mortgage amount in the third quarter was 78% of the property value. The average age of the buyer was 35 years.