Slovakia: Investment Potential

Slovakia: Investment Potential

Slovakia is one of Europe's fastest-growing economies and has become one of the region's most exciting emerging markets. The country's European Union (EU) entry in 2004 has meant financial support from the EU for the development of the tourism sector. In addition, the county has benefited from increased availability of budget flights, opening up air connections to all parts of Europe. Property investors in Slovakia can also take advantage of its favourable tax regime, which along with a growing demand for good quality properties that are in short supply, makes it the perfect investment environment.

Slovakia's Economic Expansion

Prospective property investors in Slovakia will find that the country has been one of the region's strongest economic performers over the last few years. The government has been focusing on prudent economic policies in anticipation of the country's Euro adoption, which is expected in 2009 - all of which have increased investor confidence. Multinational companies are keen in invest in Slovakia thanks to its low labour costs, flat-rate taxation and political stability. As a result, the country has attracted substantial foreign investment since it joined the EU, reaching €2.2 billion in 2005 - an amazing 100% increase on 2004's figures.

Property Price Growth

Residential property prices show interesting growth for investors in Slovakia. Fuelled by rapid economic growth, they rose by 32.5% in 2007; almost double 2006 when the growth was 17.5%. Bratislava is the main focus for investors with impressive property price growth over recent years. The National Bank of Slovakia recorded price rises of 21.3% year-on-year since 2002 and in its Global Residential Market Review for 2007 Savills noted strong price rises in Slovakia. Property investment in Slovakia looks like one of the best investments for some time to come.