In the last quarter of the previous year, selling prices for housing in Slovakia saw an increase of over 3 percent, bringing the annual growth to 13 percent. Older apartments and houses experienced a faster price rise compared to new apartments, especially in the Nitrian region where new apartment prices also grew briskly. Despite the deteriorating financial situation of many households due to consolidation measures, there remains a significant group of buyers who are still interested in purchasing new homes and can afford to finance them.

The gap between the advertised prices and the final agreed selling prices in contracts has narrowed in the latter half of the past year. According to data released by the statistics office on Friday, selling prices surged by 12.8 percent year-on-year in the last quarter, confirming the strong price increases previously mentioned by the National Bank of Slovakia. Advertised prices also increased by 12 percent towards the end of the year. The chart illustrates that housing prices are now more than double the average from the year 2010, highlighting the considerable rise in the real estate market over more than a decade.

This substantial increase in housing prices raises concerns about affordability for many potential buyers, especially in light of financial challenges faced by households. While certain sectors of the population remain capable of purchasing new properties, the broader economic environment, including ongoing consolidation measures, might pose risks to the sustainability of this housing demand. The dynamics between listed prices and actual sale prices could indicate a shifting market, hinting at potential adjustments in the coming months as the landscape evolves.