Investment property in Slovakia is becoming very popular with well informed property investors as it offers excellent returns coupled with low risk.
Not only is Slovakia investment property giving great returns this trend looks set to continue for many years to come.
Here we will look at why you should consider investing in property in Slovakia.
1. EU Membership
Membership of the EU which was granted in 2004 makes Slovakia more attractive for all forms of investments and ensures a level of political and economic stability that inspires confidence in foreign investors.
From the point of view of investing in Slovakian property it guarantees EU legal rights to all investors.
There are no restrictions on buying property in Slovakia for EU citizens when purchasing commercial and residential property.
This is not the case in many other recent members of the EU where overseas investors have to form a company in order to buy property as well as get permission from local authorities.
2. Location Location Location!
The Slovak Republic has borders with:
Austria, Czech Republic, Poland and Hungary – and the Ukraine.
This makes it a country at the heart of Europe and there are many locations where you can buy property for capital gains and the capital Bratislava is the most popular foreign investment property location in Slovakia.
Bratislava benefits from its superb and is close to the following:
30 miles from Vienna, 2 hours from Budapest and 3 hours from Prague.
Prices in Bratislava are lower than in Prague or Budapest and offer excellent potential for capital gains which will be driven by the following factors:
With the lowest wages in the EU, foreign companies have moved to Bratislava to take advantage of cheap labor costs.
This has given rise to a shortage of housing and estimated 40,000-50,000 new dwellings will be needed annually to house the labor influx.
Property for sale in Bratislava remains highly affordable and in Petrazalka – close to the station and the rail link to Vienna – apartments can cost as little as £30,000.
Many investors are also looking at the lucrative buy to let market and are targeting the university city of Trnava.
With rental values rising by around 18% per year, it’s an affordable and lucrative place to invest.
GDP growth rate in excess of 8% achieved in 2006 and a similar level of growth forecast for 2007.
Slovakia’s Government between 2002-2006 carried out reforms to the taxation, labour and social systems which has made the country much more attractive for foreign investors.
The World Bank nominated Slovakia as the world’s top reformer in improving its investment climate during 2004.
The current Government is building on the base of the previous administration and has committed to Slovakia joining the Euro in 2009.
These reforms are helping the Slovak Republic attract major investments in industry and commerce.
For example, due to recent investment in the auto industry, Slovakia is now becoming the highest producer of cars per capita in the World.
Another industry that is be promoted and developed in Slovakia is tourism.
Slovakia is relatively undeveloped in comparison with neighboring countries such as Hungary and the Czech Republic and the country in addition to the charm of Bratislava.
Buy investment property in Slovakia should not be restricted to just buying in Bratislava.
Move out of the cities and you are in beautiful countryside and national park areas and property prices become even cheaper.
Rural properties around the mountainous regions of the country make excellent affordable second homes.
Popular destinations are:
The ski resorts of Ruzomberok in the central Velka Fatra range, Jasna in the Low Tatras and Zilina and Poprad in the High Tatras.
Investment property in Slovakia – The future
The future looks bright for Slovakia and the advantages of:
Geographical location, rising GDP, innovative reforms, growth in tourism and property to suit all budgets and you have market that looks set to provide investors with solid gains for years to come.
If you are looking at buying overseas property, then consider buying Slovakian investment property and you may be glad you did.