Real Estate In Slovakia

The economy in Slovakia has been booming for a number of years, with GDP growth near 10 %. This has led to a great increase in personal wealth and fuelled the desire of Slovaks to own property and quality housing. This in turn has attracted a lot of foreign investments further boosting the market and its possibilities for investment. Property prices have risen by 10 to 20 % every year over the fast few years and there seems to be no end in site to the boom.

In spite of this property prices are still very reasonable and the strength of this sector is in the fact that all demand is from locals and therefore likely to be more sustaining than in case foreign buyers were the mainstay. Foreign buyers can walk out just as easily with the slightest changes in their own country or if political events intervene and this can cause a lot of volatility in the market. But if the demand is from actual users in the local population this demand is likely to remain steady as long as the economy of the country is stable. And that of Slovakia is very much so, especially with the prospects of it joining the euro currency which will allow that country to be more acceptable to all its European neighbors.

Slovakia is continuing to look good for real estate investors because the demand is based more on local requirements for good housing and this can never reduce whatever the economic situation. Though the Slovaks have now access to loans and mortgages like in developed countries, there is still a reluctance to go in for such financial instruments and still depend on savings. This has ensured that the economy has never been in danger of being affected by the over extension of credit and easy money that did cause the collapse of the economies in other countries. Even credit card debt is almost unheard of in Slovakia and people always prefer to live on existing earnings and not to mortgage their future earnings.

Even so mortgage rates are extremely low at 5 to 7% and less, finance for real estate acquisitions is easily available and you would do well to take advantage of the present market situation and invest in that cheap property in Slovakia. For alike all good things, this is attracting a lot of interest and if you do not hurry and make that investment it is likely that you may not find anything on the market or that the prices would get caught up in the demand supply situations and would no more be as attractive as they are at present.

The Tetras mountain range in Slovakia is a world heritage site that is a natural border between this country and Poland. Its beauty and vast potential for hiking and skiing adventures has seen a lot of investment in real estate to attract tourists who seem to have discovered its potential recently. Golf courses have also been built here and are therefore inviting further tourist traffic, and have led to a lot of Slovaks and foreigners investing in homes, villas and the like. The property value has been further enhanced by laws that limit the construction in order to retain its natural surroundings.