Statistical Office of Slovenia (SURS) announced that residential real estate rose in price by 15.6% on an annual basis (from the second quarter of 2021 to the second quarter of 2022), and by 3.5% in the second quarter itself. The volume of sold deals has decreased slightly due to the chronic lack of construction of new residential units, but the prospects for further price growth are excellent.
In times of inflationary pressures, the Ljubljana real estate market is an excellent investment opportunity. There are at least five compelling arguments for this.
1. Demand is significantly greater than supply.
The market deficit is about 30,000 housing units. Due to the lack of vacant land with suitable (residential) zoning documents, the lack of capacity of construction companies and the lengthy procedures for obtaining building permits, the trend of increasing the stock of new housing units cannot significantly increase.
2. Ljubljana is an attractive capital with a large increase in migration.
According to SURS data for the years 2012 to 2022, around 1,000 new residents move to Ljubljana per year. However, only about 500 new housing units are built annually.
3. Growth in the value of real estate is statistically usually higher than inflation.
In times of higher inflation, the growth in the value of real estate is usually a few percentage points above inflation itself. This means that your investment is relatively safe from the decline in the value of money compared to other, riskier investments.
4. The investment is paid off earlier than in eight years.
In the last three years, the Ljubljana real estate market has recorded a 12 to 15 percent annual growth in value. The income from renting out in Ljubljana amounts to 2 to 3% of the property's value annually. Both together mean that your investment can be recouped in less than eight years.
5. The slowdown in investments will further stimulate the growth of real estate prices.
The rise in the prices of construction materials and services in the construction industry stopped investments by private investors in new buildings. Considering the current demand on the real estate market, it can be concluded that due to the lack of new real estate on the market, real estate prices will continue to rise.
In the picture gallery you can see the current situation at the construction site from September 2022, where inside the Villa Schellenburg there are:
Investing in real estate in Ljubljana is therefore a very smart investment, which is also safe and more profitable every day - investing in real estate is an investment in your future. But such opportunities are limited. Don't miss yours!
Contact: +386 40 505 081
