Slovak Real Estate Market Outlook 2025

Economic Outlook

In 2024, inflation in Slovakia fell below 3%. It was also one of the best years in terms of employment. We assume that, in connection with decreasing interest rates, the economy should also grow in 2025, with a slight decrease in the unemployment rate.

Capital Markets

The Slovak real estate investment market is expected to improve in 2025. Key factors contributing to this trend include an increase in available properties for sale, better financing conditions, and rising interest in large transactions.

Office

In 2024, new completions reached one of the lowest levels in recent years, with an even further decline expected in 2025. This prolonged period of limited construction will contribute to a decreasing vacancy rate. While overall vacancy remains above 12%, the market for prime, high-quality space remains notably constrained.

Industrial & Logistics

Following two years of strong leasing activity, 2024 experienced a notable slowdown, with take-up declining by up to 41% year-over-year. We anticipate that softer demand will lead to a modest increase in vacancy rates and stable or decreasing rental levels. However, in selected areas with limited available space, and solid occupier demand, rents are expected to continue rising at a moderate pace.

Retail

Year-on-year turnover and shopping center footfall have risen, driven by real wage growth. In the construction sector, retail parks lead the way, a trend we anticipate will continue into next year.

Bratislava Living

Starting in 2024, new apartment sales commenced as interest rates gradually decreased, but prices began to increase. This rise can be attributed to a notable decline in construction activity. We anticipate that apartment prices will continue to rise in 2025, primarily driven by heightened demand and partially influenced by increased taxation