In Slovakia, the surge in apartment prices, which saw an increase of 12% last year, is expected to slow down considerably this year. Experts suggest that future price growth will hover slightly above inflation levels, making investments in real estate less attractive. A combination of unfavorable economic conditions, such as stagnant real income growth and a cooling job market, has led analysts to predict that the market will face the slowest growth in history.

An essential factor contributing to this slowdown is the country's demographic shift, particularly the decreasing population, which negatively impacts demand for housing. Michal Lehuta, an analyst from VÚB, expressed concerns that as the population continues to decline, especially among young individuals, the unsustainable high rates of double-digit growth in property prices will inevitably level off. This demographic change raises questions about the future of real estate investment and highlights the challenges ahead for the housing market.

Additionally, declining interest rates, which have stabilized above three percent, have only compounded these economic challenges. As a result, both analysts from NBS and private institutions are advising potential investors to recalibrate their expectations, as the prospect of achieving double-digit returns on investment properties may be overly optimistic.