Ljubljana Apartment for Sale
Luxury apartment for sale in downtown Ljubljana – (GBD Real Estate Ltd.)

One of the most frequently asked questions regarding real estate in Ljubljana is: will the prices fall?

Ever since 1995, the market value of real estate in Slovenia have been riding a strong wave that has yet to subside. Particularly in Ljubljana and some other highly sough-after areas such as coastal properties (remember, this country only has 43,157m – yes, that’s metres, not kilometres – of coastline), prices are not low and continue to rise. Some speculate that the properties are overpriced and that the inflated bubble is bound to burst sooner or later.

If in January of 1995, one had to pay approximately €1,300/m2 for a studio or about €1,000/m2 for a 4-bedroom apartment in Ljubljana, you’d be paying almost €3,500/m2 for a studio and an average of €2,300/m2 for a 4-bedroom apartment in June 2007 (source). I need to emphasize here that these are average prices. The very top properties go for as much as €6,000/m2.

Traditionally, prices of apartments in the greater Ljubljana area have been considerably lower than in the city itself, but with the ever improving road infrastructure, the shortage of available appropriate properties, unaffordable prices and the fact that the younger population is more willing to commute than ever before, many of those employed in Slovenia’s capital have decided to stay in their original home areas or to move further from the centre to secure more space for a better quality of life. Consequently, prices in the greater Ljubljana area have seen a steady rise since 2003.

Now for the big question: Are prices inflated and will they start falling? Unfortunately, my crystall ball is in a repair shop at the moment so I can’t provide a real answer. But based on how this city is developing, how many apartments are being constructed, how Slovenia is positioning itself in the EU both on the short and on the long term I tend to agree with the assessment that architect Miran Gajšek, Head of Department for Urbanism at the Municipality of Ljubljana gave at the Investment Conference two weeks ago.

Mr. Gajšek said, and I concur, that the only potentially overpriced real estate in Ljubljana are studios of up to roughly 35 m2. Prices there might well decrease in the future. As for the other types of properties, the upward trends are bound to continue.

Real Slovenia: A series of blog posts on the subject of real estate in Slovenia, coming every Tuesday and Thursday at drfilomena.com.