Slovakia Property Investment News

Predicted price growth in Slovakia as borders are relaxed

A rise in property prices in Slovakia’s capital of Bratislava is predicted, following the announcement that the country is to join the border-free Schengen zone at the beginning of next year. Slovakia has been working to meet the requirements of the Schengen zone for some time, and to this end has recently re-opened its border crossing with Ukraine after finishing three months of reconstruction works.

The Schengen zone includes a number of states that have signed the Schengen Agreement, and between which there are now no border controls. It was announced last month that four countries - Lithuania, Poland, the Czech Republic and Slovakia - are to join the zone on 1st January 2008. This means that border controls between these countries and the other Schengen member states will be removed. Airport checks will continue until March, and then these will be lifted also.

For most areas within the new member countries, joining the zone will have little effect on property prices. However, according to the ‘Propertastic!’ website – an online property resource – the property market in the Slovakian capital of Bratislava is likely to be the exception. Bratislava is located just 56km from the Austrian capital of Vienna, and the difference in property prices between the two is significant. It is anticipated that as Vienna becomes more accessible from Bratislava, more Slovakians will commute to the Austrian capital for work. This will bring more money into Bratislava, which in turn will generate greater demand for high quality accommodation.

Bratislava has been the main focus for investment coming into Slovakia, with a number of large companies moving into the capital, attracted by cheap labour costs. The city has already reported a housing shortage as construction levels have so far been unable to keep up with the demand resulting from the influx of foreign companies.