Slovakia Property Investment News

Slovakian market to benefit from joining euro zone

Investors in Slovakian property have welcomed the announcement that Slovakia is on course to adopt the euro at the beginning of 2009, according to an EC Commissioner. This is the latest of several positive pieces of news that the country’s property market has seen recently: the country’s capital has been tipped for price growth after an increase in Austrian and domestic migration to the city, and a survey has highlighted Slovakia for its comparatively low transaction costs.

After accession into the EU, the adoption of the euro currency is traditionally the next factor that can cause a boom in a country’s economy and its property prices, as it demonstrates that the country has met a stringent set of criteria in order to be accepted into the euro zone. According to the EC Commissioner for Economic and Monetary Affairs, Joaquin Almunia, Slovakia is likely to adopt the euro in early 2009, in line with the government’s intended deadline, despite it not yet meeting inflation and budget deficit criteria. The prime minister of Slovakia, Robert Fico, confirmed that the necessary fiscal and social policies are in place to ensure these targets are met.

Bratislava has recently been in the headlines as increased demand is pushing property prices up. The capital is said to be emerging as a target for buyers and investors from Austria, which – alongside the migration from within the country as workers move to the capital for work – is pushing up property prices. Demand from the domestic market has also risen as lenders are now offering the Slovak people a more extensive selection of mortgages.

Slovakia was recently cited as having one of the lowest transaction costs in a recent Global Property Guide survey. The survey highlighted the high costs associated with purchase in some countries, such as Russia where costs can amount to 25% of the purchase price. By comparison, Slovakia has one of the lowest at 4%.