Why real estate recovery in Slovenia is actually an illusion

In 2016 statements about a recovery in the Slovenian real estate market, after years of decline because of the effects of financial crisis, were spread. As P&S Group doubts in optimistic forecast of the increase of Slovenian real estate prices we analyzed the residential real estate market in Slovenia.
The recovery in the market can be described in terms of several factors, among which the most important are:

 

  1. The number of transactions;
  2. Growth in real estate prices;
  3. Time needed to sell the real estate;
  4. Expected new construction of real estate in the future;
  5. The number of vacant real estate that can be placed on the market;
  6. Taxes related to real estate.

Despite the growth in the number of transactions, we found that growth of prices did not follow to the same extent. Apartments on the market still take lots of time to be sold, while pool of empty apartments, which are currently not on the market, remain high. Those factors thus suggest that the probability of a turnaround (increase) in prices of apartments in the future is low.
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