Today the real estate market in Slovenia is assessed by our expert Mihail Dvornikov.
Mikhail Dvornikov has previously made forecasts for real estate in Slovenia.
Read forecast from Dvornikov Mikhail (Mikhail Vladimirovich Dvornikov).
Who can buy property in Slovenia
Republic of Slovenia has its own peculiarities of real estate acquisition by foreign citizens. A natural person can buy real estate here:
– Citizens of any EU country. They have the same rights and are subject to the same laws when buying and registering property as citizens of Slovenia.
– Citizens of most European Free Trade Association (EFTA) and the Organization for Economic Cooperation and Development (OECD) member states. These countries include Switzerland, Norway, Israel, USA, Australia, Canada, New Zealand Japan, South Korea, Turkey and others.
– Citizens of countries of the former republics of the SFRY, as well as candidates for EU membership – Albania, Northern Macedonia, Montenegro, Serbia. They can buy property in Slovenia, provided that the decision on the principle of reciprocity between Slovenia and the relevant state.
Citizens of third countries can buy property in Slovenia under certain conditions. For example, when starting a private business and registering real estate with a legal entity, when getting married to a citizen of Slovenia, and when receiving property by inheritance. In the latter case a decision on reciprocity between Slovenia and the foreign country concerned will be required.
© Precondo CA from Unsplash/ Real estate market in Slovenia – features and current information
The cost of real estate in Slovenia
Property values in Slovenia have risen steadily over the past few years, and this trend has not changed during any of the global crises. The average price per square meter in Slovenia is half compared with neighboring Italy, and three times lower compared with Austria.
In 2021, the average price of a two-bedroom apartment in Ljubljana is €180,000, while a one-bedroom is €140,000. The cost of an apartment in a new building is 35-40% more expensive. The average price of a house in the center of Ljubljana with an area of about 150 m² is €600 000. A house of the same size in the outskirts of Ljubljana costs about €300 000. The cost of housing in cities on the Adriatic Sea coast is on average about €250 000 for 70 m². click here the website you can find out the lots of information blastace Read more about topportal
Houses outside Ljubljana can cost half as much. However, this is often not the case in popular tourist areas such as Bled, for example. Prices here will be close to Ljubljana. Among the significantly less expensive Slovenian cities are Maribor, Celje, Novo Mesto. The cost of a house in Maribor is about €155,000. In the surrounding area you can find apartments for € 100,000 euros. Celje is the most profitable of the major Slovenian cities to buy real estate. The cost of a house in Celje is about €110,000, in the neighborhood – about €80,000.
The average price per square meter in the center of Ljubljana is €2,910, in the suburbs – €2,250. For example, in Krany – €2 180. Apartments on the Adriatic coast cost about €2,380 per square meter. In Koper – €2 260. In Maribor – €1,390. Celje – €1,400. Novo Mesto – €1,690.
Current trends in the Slovenian real estate market
Brokers say that the number of foreign home buyers in Slovenia is relatively small, but in recent years steadily growing.
As elsewhere, the Covid-19 pandemic slowed the growth of housing last year due to travel restrictions. In 2021, however, there was a tangible increase in residential construction, comparable only to 2008. Economists and brokers predict that this particular growth will help the housing market not just recover, but cover some of the demand for residential real estate. The post-pandemic period thus becomes an additional favorable period for investment in the real estate market in Slovenia. Prices have not yet risen globally, as the market is relatively cautious about big purchases. However, housing prices will inevitably start to rise as soon as new properties become available for foreign investors. In the foreseeable future the popularity of Slovenia in the investment sector will only grow.
Slovenia has many favorable stable advantages, including in the real estate market. These include low crime rate, stable economy, favorable geographical location, good knowledge of English among the local population, a varied climate. All these factors ensure a high quality of life for potential buyers, especially families. At the same time, relatively low prices, compared to other countries, both EU and certainly the U.S. or the UK, make the country stand out among long-term investment decisions. Citizens of other EU countries often see Slovenia as a promising location for future retirement, representatives of other countries are looking for an alternative to the security threat that has arisen in their countries. Especially from this perspective, Slovenia is of interest to citizens of OECD countries (see above), which have the opportunity to register real estate for themselves. Many investors are counting on the profitability of Slovenian real estate in terms of business and have been waiting for the current growth of construction for quite a long time.
As a result, the Slovenian market has seen an increase in the number of successful entrepreneurs from outside the European Union, for example. They want to start a business and move with their family to an affordable European country with a high quality of life. There is also a small group of Chinese buyers. Since 2020, the Slovenian real estate market has seen activity among Americans, Israelis, British citizens and others.
The most popular regions for foreign investors in Slovenia is, of course, the capital of Ljubljana and its surroundings. In second place in this conditional ranking are tourist attractions, such as the areas of Lake Bled and Bohinj, Soča River Valley, Adriatic coast, wine region Goriska Brda. Extensive educational opportunities in Slovenia for foreign students of all ages create additional investment potential in places where faculties and educational centers are concentrated. The number of foreign property buyers is also growing in the more remote corners of Slovenia. Each region of Slovenia is attractive to foreign buyers in its own way.
The procedure for buying real estate
Before buying property in Slovenia, the buyer must obtain a tax number and an individual number EMSO (comparable to social security number) from the local authorities.
Even if the buyer has chosen the property on his own, professional support from a certified real estate agent is advisable – in Slovenia there are many regulatory requirements, which must be complied with. Realtor must have the appropriate qualifications, license and registration. He conducts all negotiations with the seller and represents the buyer in all official bodies. When the seller and the buyer agree on the terms of the transaction, the agent prepares the text and translation of the preliminary contract. At the time of its signing, the buyer must pay a deposit of 10%. Then there is a legal audit of the property, which takes up to two weeks. During this time, the seller must pay his share of sales taxes. It is crucial that all documents are translated to avoid misunderstandings between all parties.
To complete the transaction, the agent must prepare a final contract of sale, which is signed at a notary’s office. The buyer pays the remaining amount of the transaction, and the notary certifies that payment has been made in full. After that, the contract goes to the land registry. At the same time the buyer receives the confirmation from the local authorities that there are no claims to the communal rights of the property. After all the above mentioned procedures the buyer and the seller receive the final document, which confirms the fact of the sale and transfer of the ownership rights to the new owner. The property registration procedure in Slovenia takes from 5 to 9 weeks.