The Slovakian Association of Realtors give us the low-down on the state of the property market in this part of eastern Europe

The Slovakian real estate market is still young and vital. After 18 years the market has strengthened from its nascent state, into the robust market we know it as today - strong, stable and attractive. Today Slovakia is destination country for local and international developers and investors. Traditionally countries that have invested in the real estate market in Slovakia are the UK, Ireland, Germany, Israel, Czech Republic and Austria. Individual investors are also coming from these countries, in order to make a healthy profit from the real estate market, where prices in the capital city of Bratislava have grown year-on-year.

For instance, we can compare the price of a two bedroom flat in 2006 (2,300,000 Sk or €62.200) and 2008 (3,500,000 Sk or €109,000). 2008 has been a year of stabilization in the residential property market - with prices steady for several months. This comes mostly from the expectation around the forthcoming Euro exchange rate, a currency that Slovakia will adopt in January 2009.

The market is also strong in other areas, such as office space, retail, second homes, and the industrial market. New grade A business districts are being developed in Bratislava, offering hundreds thousands of new square metres of estate each year. Rental prices, for fine office space just outside of the historic city centre, are between €11-14 a square metre per month. The vacancy rate is very low with many new projects quickly reaching 100 percent occupancy. Many international companies set up regional headquarters in Bratislava including the likes of Dell, IBM. Lenovo, and HP. Investors can, in 2008, look forward to projected yields of about 6 percent from office space.

Compared to previous years the rate is lower, at the turn of the millennium the rate was around 10 percent. It's possible that rental prices may decrease in the future, given tough international market conditions, and because the development rate is currently high resulting in tough competition. The market has also moved to other regions of Slovakia, and the country is now seeing various developments constructed around Slovakia, with some regions and cities anticipating upturns in local markets. For those looking for second homes there are some regions, which are very attractive because of ongoing infrastructural development. These areas such as the High Tatras and Low Tatras regions in the mountains, and Pietany (a great spot for spas) are well located to provide a high quality of life.

Wellness and entertainment investments - such as water-parks, skiing, and golf offer high yields for those looking for an active lifestyle. Prices for new apartments in these regions (with enviable locations) are comparable to those in Bratislava. Booming economy All these developments are based on the high growth rate of the Slovakian economy, born out of its position as an excellent business environment. The average salary in Slovakia has risen from €405 in 2004 to €660 in 2008 - in Bratislava the average salary is 32 percent higher. Very helpful for the market is easy access to financial resources - the average mortgage rate is between 4.5 percent and 5.5 percent.

On the other hand, Slovakian people are not in significant debt (credit of households is under 20 percent of GDP) - so there is still space for new potential buyers. Especially when you consider the fact that the home ownership rate is one of the highest in Europe, at around 90 percent. All this points to Slovakia being on the up.