When demand exceeded supply, prices didn’t go down, but in fact reached new heights in 2020. The price per square meter for new builds reached approximately EUR 3,500, which is 11% higher than in the previous year. Changes were also registered in the rental housing segment, where there was an increase in supply due to short-term rental properties being changed to long-term rentals or even offered for sale. In some regions, average monthly rents have decreased by about 15%.

Investing in real estate has long been one of the safest places to park one’s money, and the crisis solidified this fact. “There is currently a lot of money being pumped into the economy, which is likely to cause inflation, and therefore properties, even the most high-end ones, can be safe havens. Many people today see buying real estate as a ‘pillar of the pension system.’ Due to the frequent changes to this pension system, people have stopped trusting it. They see its guarantees as insufficient and are seeking their own solutions, such as acquiring properties that they can rent out and earn income from,” says David Martan, Managing Director of Svoboda & Williams Slovakia. Purchasing power remains relatively strong despite the pandemic, while the supply of housing is lagging behind, and so prices can be expected to increase in 2021.