Investment properties in Slovakia are becoming very popular with well-informed real estate investors as they offer excellent returns along with low risk.
Not only are investment properties in Slovakia giving great returns, but the trend looks set to continue for many years to come.
Here we will see why you should consider investing in property in Slovakia.
These include:
1. EU Membership
Membership in the EU, which was granted in 2004, makes Slovakia more attractive for all forms of investment and ensures a level of political and economic stability that inspires confidence in foreign investors.
From the point of view of investing in Slovak property, it guarantees EU legal rights to all investors.
There are no restrictions on buying property in Slovakia for EU citizens when buying commercial and residential property.
This is not the case in many other recent EU members where foreign investors have to form a company to buy property and obtain permission from local authorities.
2. Rent Rent Rent!
The Slovak Republic has borders with:
Austria, Czech Republic, Poland and Hungary – and Ukraine.
This makes it a country in the heart of Europe and there are many places where you can buy property for capital gains and the capital Bratislava is the most popular foreign investment property location in Slovakia.
Bratislava benefits from its excellent and is close to the following:
30 miles from Vienna, 2 hours from Budapest and 3 hours from Prague.
Prices in Bratislava are lower than in Prague or Budapest and offer excellent capital gains potential which will be driven by the following factors:
With the lowest wages in the EU, foreign companies have moved to Bratislava to take advantage of cheap labor costs.
This has resulted in a housing shortage and it is estimated that between 40,000 and 50,000 new homes will be needed annually to accommodate the influx of labour.
Property for sale in Bratislava remains very affordable and in Petrazalka, close to the station and the rail link to Vienna, apartments can cost as little as £30,000.
Many investors are also looking into the lucrative buy-to-let market and are targeting the university town of Trnava.
With rental values increasing by around 18% per year, it is an affordable and lucrative place to invest.
3. GDP
GDP growth rate above 8% achieved in 2006 and a similar level of growth forecast for 2007.
The Government of Slovakia between 2002 and 2006 carried out reforms in the tax, labor and social systems that have made the country much more attractive to foreign investors.
The World Bank named Slovakia the world’s top reformer in improving its investment climate during 2004.
The current government is building on the foundation of the previous administration and has committed to Slovakia joining the euro in 2009.
These reforms are helping the Slovak Republic to attract significant investment in industry and trade.
For example, due to recent investment in the automotive industry, Slovakia is becoming the largest car producer per capita in the world.
Another industry that is being promoted and developed in Slovakia is tourism.
Slovakia is relatively underdeveloped compared to neighboring countries such as Hungary and the Czech Republic and the country in addition to the charm of Bratislava.
Buying investment property in Slovakia should not be limited to buying only in Bratislava.
Get out of the cities and you will find yourself in beautiful countryside and national park areas and property prices will get even cheaper.
Rural properties around the mountainous regions of the country make excellent affordable second homes.
Popular destinations are:
The ski resorts of Ruzomberok in the central Velka Fatra mountain range, Jasna in the Low Tatras, and Zilina and Poprad in the High Tatras.
Real estate investments in Slovakia – The future
The future looks bright for Slovakia and the advantages of:
Geographic location, rising GDP, innovative reforms, growth in tourism and property for all budgets and you have a market that looks poised to provide investors with solid returns for years to come.
If you are thinking of buying property abroad, then consider buying investment property in Slovakia and you will be glad you did.