Thursday, 6 November 2025
Slovakia’s residential property market continues to show unexpected resilience. Even as the wider economy cools and household budgets tighten, home prices have again edged higher, sustained by a chronic shortage of new apartments and steady demand for mortgages.
Data from the National Bank of Slovakia show that the average price of housing climbed to around €2,780 per square metre in mid-2025, up from roughly €2,700 earlier in the year. Analysts estimate that national prices were about 12% higher than a year ago, with gains more moderate than in 2023–24 but still well above inflation.
The pace of quarterly growth eased to under 3%, signalling that the market may be entering a calmer phase after two years of rapid acceleration. Apartment prices remain notably higher than those for family houses, reflecting both urban demand and the scarcity of new projects in major cities.
Developers continue to struggle with high construction costs, labour shortages, and lengthy permitting processes. According to data from the Statistical Office, housing completions in the second quarter of 2025 fell nearly 15% compared with the previous year, hitting the lowest level in over two decades in Bratislava. This persistent lack of supply is the key factor preventing a significant correction.
“After years of strong growth, we are now seeing a shift from rapid expansion to a more selective market,” said one analyst. “Regions with solid employment and infrastructure will likely maintain steady values, while weaker areas could see short-term corrections.”
Mortgage lending has also rebounded. Banks granted over €600 million in new housing loans in September, nearly triple the volume seen in early 2024. Although average interest rates have edged down only slightly—from around 4.5% in early 2024 to just above 3.6% this autumn—many Slovaks are locking in financing before costs rise again.
Despite higher borrowing costs and slowing economic growth, a fundamental housing shortage estimated in the hundreds of thousands of units continues to underpin prices. Analysts say that unless construction picks up meaningfully, the market is likely to remain tight through 2026, with price increases slowing but not reversing.
Source: National Bank of Slovakia, Statistical Office of the Slovak Republic and CIJ.World analyst commentary.
