16 Feb 2009

Ljubljana Housing Market Slows Down in 2008

The growth of advertised prices of flats in Ljubljana fell to 3.4 percent in 2008, as the prices fell in the third and fourth quarters by 0.7 percent and 2.3 percent respectively, according to the real estate website www.slonep.net.
The main reasons are the reduced ability of potential buyers because of the high prices, the vast offer of new flats and worse borrowing terms.
Buyers started delaying the purchase when they saw the prices are going down, which in turn meant further decrease in demand.
Prices around Ljubljana rose by 10 percent and were also falling in the second half of the year.
The average growth of listed house prices in Slovenia varied between 4.9 percent at the coast and 34.8 percent in the Koroško region. The price of houses went up by an average of 10.1 percent in Ljubljana and 13.7 percent on its outskirts.
The price of building land increased in most of the regions - by 90.7 percent in Koroško, by 78.4 percent in Dolenjsko, 65.4 percent in Posavje, 34.8 percent in Ljubljana and 32.2 percent on its outskirts - while falling in the northern part of Primorsko and in Pomurje.
Offices in Ljubljana were 3.8 percent more expensive and finished the year at 1,733 euros per sq. metre, while the prices of commercial facilities fell by 3.3 percent and the price of bars and restaurants rose by 1.4 percent.
Apartment rents in Ljubljana also rose considerably, as they finished the year 11.8 percent higher with an 8 percent growth in the second half of the year alone.
The advertised rents grew the most for two-bedroom flats (18 percent), rooms (14 percent) and four-bedroom flats (13.5 percent). The growth was slowest for flats with more than four bedrooms (0.5 percent) and flatlets (1.5 percent).