Saturday, 15 March 2025
The growing housing crisis in Slovakia remains one of the most pressing socio-economic challenges of our time. Soaring property prices have made homeownership unattainable for a large portion of the population, including young families, single parents, and freelancers. As real estate prices continue to reach record highs, innovative solutions are needed to provide affordable housing options. One promising approach lies in cooperative housing, an old-new concept that has been successfully implemented in various European countries.
Slovakia currently lags behind in adopting cooperative housing on a larger scale, with only one major developer actively pursuing this model. Additionally, banks have been hesitant to offer refinancing options for cooperative housing projects, further limiting their expansion. However, inspiration can be drawn from neighboring Czech Republic, where significant strides have been made in addressing similar challenges. Czech banks have introduced a groundbreaking initiative—a mortgage option without the need for a guarantee, enabling individuals to purchase cooperative apartments without traditional property ownership barriers.
In Bratislava, where the average price of a two-room apartment exceeded 200,000 euros in 2024, the situation has become increasingly unsustainable. The affordability crisis extends beyond the capital, affecting many regions across the country due to stagnant purchasing power and slow wage growth. The adoption of cooperative housing in Slovakia could present a viable solution, potentially enabling up to 50,000 families to secure housing if just 10% of newly built apartments followed this model.
Under the cooperative housing system, residents do not own their apartments outright but instead become members of a cooperative that collectively owns the property. This model allows for lower initial costs compared to traditional homeownership, as buyers are not required to pay the full market price upfront. Instead, they make monthly payments, similar to rent, contributing to the overall cost of the property while enjoying the security and stability of long-term residence.
In the Czech Republic, cooperative housing has gained traction thanks to policy changes and financial instruments tailored to support this model. The introduction of mortgages without collateral has made it easier for individuals to invest in cooperative apartments, offering them an alternative pathway to affordable housing. Slovak policymakers and financial institutions could take inspiration from this approach to make homeownership more accessible to wider segments of the population.
Despite its potential, the expansion of cooperative housing in Slovakia faces several challenges. Legislative adjustments would be required to facilitate the development and financing of cooperative projects, and banks would need to develop tailored mortgage products to support buyers. Additionally, public awareness and education about the benefits and workings of cooperative housing would be essential to encourage broader acceptance.
If Slovakia embraces cooperative housing as a strategic solution, it could alleviate the housing crisis by providing affordable, flexible, and sustainable housing options. With proper regulatory frameworks and financial support, cooperative housing could become a key component of the Slovak real estate market, helping thousands of people achieve housing security in an increasingly expensive market.
In the coming years, Slovakia has the opportunity to learn from its neighbors and implement cooperative housing at a larger scale. If banks and policymakers take decisive action, the dream of homeownership could become a reality for many who currently find it out of reach.
Source: Trend.sk
