As predicted at this blog before, prices of real estate in Slovenia, especially Ljubljana, have continued their upward trend.

RTV Slovenija reports that an analysis has shown that the advertised prices of Ljubljana properties have increased by an average of 14.3% in one year. Apartments in the immediate surroundings of the capital have appreciated even further, by an average of 14.7%. As expected, the greatest price increase was marked in the segment of small apartments while the prices of the smallest (studios) and large apartments grew more slowly (their intense upward surge occurred in 2006).

The average advertised price for small apartments has already passed the EUR 3,000/m2 mark, which makes property purchase a growingly elusive goal to many. Quite a number of new apartments are expected to be developed in the next three years, which should help curb the trend somewhat, although it is unikely that the new supply will satisfy the demand.

In Maribor, Slovenia’s second largest town, prices are much lower and it is not uncommon to pay half the price of a comparable property in Ljubljana. In addition, prices have been rising at a much lower rate with one-bedroom apartments appreciating 5.6% since March 2007 and the average advertised prices of apartments from EUR 955 to EUR 1,675 per square metre.

The only area that compares to Ljubljana in terms of real estate prices is the coastal region with some parts of Gorenjska not lagging far behind.

Although I still do not possess a reliable crystal ball, my prediction would be for property prices to keep rising although at a slightly lower rate with properties in the suburbs and in scenic but remote areas picking up. Furthermore, it will be interesting to observe the effect these trends will have on rentals with fewer people buying and more renting.

All in all, the real estate market will be just fine. As long as people’s earnings start picking up the pace with the property value trends.