The number of flats sold in Bratislava doubled in Q2 2021 and with supply levels continuing to fall, it’s now very much a seller’s market. That’s the conclusion of the real estate agency Herrys, which warns in a new report that there’s no change on the way. Herrys found that the highest number of new units are located in just a couple of project in the BA1 zone, but that 40% have already been sold without the developers even marketing them. The number of completed units in new developments is less than 2% of the overall supply. Five new projects (or stages of ongoing schemes) hit the market between April and June and the number of new units is trending upwards. However, flats are being sold at an even faster rate, according to Herrys, and that’s what’s driving scarcity.
“From a long-term standpoint, if there’s no change to the urban planning situation and to the construction law, supply will continue to dry up,” writes Herrys, adding that the current surge in construction costs could depress new housing starts. But there’s no end in sight for the public’s appetite for product. “Even if prices continue to rise, demand will remain at its current levels unless there’s a change of approach to the way banks finance their residential clients.”
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