This year has witnessed the biggest number of real estate transactions since the start of the crisis in 2008. Compared to last year the figure has risen by one third. Buyers, who can afford to make purchases, have come to realize that it is not worth waiting anymore. The prices of some newly built, as well as older apartments, have also slightly risen.

The fear of higher real estate taxes is long gone. Those that have saved enough, or are able to take out loans – interest rates are relatively low – decide to buy real estate. The group of buyers also includes small shareholders, like for example those from the Pivovarna Laško brewery or Žito food group, who have decided to cash in their shares after the recent sale of the companies.

The market has also come alive thanks to auctions by trustees in bankruptcy procedures and banks, and also thanks to the construction of the Brdo neighbourhood by Slovenia’s Housing Fund.

Apartments in Ljubljana one-fifth cheaper
Compared to the year 2010, prices have dropped by around 15 percent on average. Recently, due to the increased demand, prices have slightly risen again for both new and older apartments. Used apartments in Ljubljana are up to one-fifth cheaper compared to 2010.

There is one area though that is still doing bad on the real estate market. Frano Toš from Interdom is a real estate market expert: "Older houses, constructed and built in the 1970s or even before, find it very difficult to find new owners. We have buildings which have to be renovated, and many times renovation is not even possible. The expectations of today’s buyers are much different than before the crisis. Buyers were more rational then. I think it’s the market offer which will have to make bigger adjustments."

Prices to grow steadily
There is much less offer on the market than before the crisis. If all goes well, the bad bank will put up for sale 227 apartments in the Celovški Dvori neighbourhood in Ljubljana in the autumn. It will later also start selling 215 apartments in the Koper Nokturno neighbourhood. The moves of course won’t shake the market. The expectations are that prices will start rising, but at a steady pace.

Considerable discounts can still be expected for apartments with no renovated facades or parking spots. Some of the recent real estate purchases are also forms of investments, which means their new owners will wait for prices to rise even further.