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Property Investment in Slovakia 2008

Slovakia has one of the fastest-growing economies in Central Europe. With a huge shortage of properties, property investment in Slovakia is rapidly growing with soaring property values.

Slovakia's entry into the EU in 2004 has presented the country with huge potential for growth in its tourism industry, greatly improving access to the vital EU marketplace, with relaxed border controls, and financial support from European Union funds for development of the tourism sector (Source: Mintel International, August 2006). At the same time, the country has benefited from increased availability of budget flights to all parts of Europe. Air connections to Slovakia have almost doubled year-on-year.

"Slovakia has one of the fastest-growing economies in Central Europe."

Slovakia has attracted substantial inward investment since joining the European Union. Multinationals keen to invest in the central European region are drawn to Slovakia for its low labour costs, low taxation and political stability. Inward foreign investment reached €2.2 billion in 2005, representing an astounding 100% increase on 2004's figures.

The National Bank of Slovakia has predicted an average growth rate of 5% per annum for the Slovak economy over the medium term. The country has been one of the region's strongest economic performers over the last few years, with the government focusing on prudent economic policies, and the adoption of the Euro in January 2009 firmly in its sights. This commitment to strong economic management has secured investor confidence, and should see the country continue to perform strongly.

Along with economic expansion, the property market has also seen substantial growth. Global Property Guide has declared Slovakia to be a good opportunity for overseas property investors, with low rental income tax and no capital gains tax on long-term property holdings. Slovakia is one of Europe's most attractive real estate investment propositions.

Bratislava has recorded impressive property price growth over recent years, with the National Bank of Slovakia stating that prices have risen year-on-year by 21.3%, and overall by 104% since 2002. Savills, in its Global Residential Market Review 2007, also noted the strong price rises in the country. “New market economies, such as new EU accession countries in the Baltic states and Slovakia are currently experiencing some of the strongest price rises [globally].”