Slovenia and its real estate could learn a lot from the current pandemic situation. This is what real estate experts and economists think. How can such a tragic experience turn into a springboard for the economy and the real estate sector? To find out, we decided to analyse the Slovenian real estate market in detail. It will be possible to understand in which direction the country is moving, especially in the world of brick. So if you are ready to learn more, we can get started!
So how is Slovenia adapting to the Covid emergency?
Let us start with what moves the Slavic economy in general and the national brick in particular: tourism. Well, although the tourist wave has not stopped, the fact remains that the epidemic needs to be fought in some way. And the focal point is precisely the housing policy to adopt.
Most people who have billed for tourist visits (in terms of rental contracts) have realised that the market is changing. Both in terms of numerical flows and in terms of demand. There is no longer a strong percentage of international demand. But everything is present on the market of second homes by the locals.
Although the rents have been advertised for a long time (thus allowing greater visibility for potential stakeholders), the contracts signed are below the monthly average of the last six months.
The impossibility of putting an end to this great emergency, both for owners and potential buyers, generates uncertainty. And this uncertainty will, of course, result in a dramatic increase in prices for purchase and sale contracts and a reduction in rental prices. All this in order to allow the economy to recover as quickly as possible.
But in a situation like this, this policy could be counterproductive.
The fact that we cannot understand when everything will normalise, when prices will rise and when real estate transactions will be prevented, will certainly not lead to major results.
Another important issue is the air bnb business. It is not always possible to calculate in detail the level of occupancy of houses available on the market. It generates a false figure that is not reliable in reality.
Moreover, in a country such as Slovenia, which has always been strong in order to enjoy a very low cost of living compared to the European average, the decrease in interest in the actual purchase of a property could be really important.
Therefore, we expect that the country will be able to rise up through a policy with little focus on rents. As the main players at the moment are not the tourists, but the locals themselves. They will have to feel the need to pour their savings into the national brick.
In spite of everything, we hope that the market will also recover with the help of foreign portfolios. But maybe later!
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