Slovakia Real Estate Market Outlook 2023
Explore the valuable insights of our experts on the trends shaping Slovak commercial Real Estate in 2023
February 1, 2023
Opportunities Amid a Slowing Economy
Despite the 2022 challenges, the real estate market is expected to stabilize in 2023, although the environment may remain challenging for some properties with higher debt costs. The office and Industrial & logistics sectors are expected to show moderate growth, while the retail sector continues to adapt to changes in consumer behavior.
- Macroeconomy: In 2022, a positive increase in the Slovak economy was registered for the second year in a row after the outbreak of the global pandemic in 2020.
- Investment: In 2022, more than 1 billion euros were invested in Slovak real estate market for the first time, and the year-on-year increase represented 48%.
- Sustainability/ ESG: Real estate investors operate in a rapidly changing business environment, but ESG remains the metric that matters.
- Office: The office real estate market has seen the weakest level of leasing activity in recent years, but 2023 is expected to see the historically largest portion of completed square meters.
- Retail: Retail sales recovered to pre-pandemic levels in 2022 as retail activity matched 2019 levels and consumers remained active in retail locations.
- I&L: The Industrial and Logistics real estate market reached a record year in the volume of leased space, completed projects, and rental growth.
- Residential: After a decade of rental stagnancy, a slight increase is expected based on several indicators, such as a lack of apartments and rising interest rates.
What factors will shape the market in 2023, and where do the opportunities await?
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