Should You Invest?
In investment terms, Slovenia is seen predominantly as a
country offering strong potential for further growth. With diverse
scenery stretching from the snow-capped Julian Alps and the
beautiful Lake Bled to the sliver of Adriatic coastline, Slovenia
has a growing property and tourism market, driven by foreign
investors and rising local employment and wage rates.
- In 2006, foreigners bought 740 properties with Britons
purchasing the highest proportion - 360 properties. House prices
have risen accordingly, by around 20% per year, since EU entry in
2004.
- Investors should be aware that there are growing opportunities
in the buy-to-let sector as tourism expands.
- The buying process is uncomplicated, relatively fast, and since
EU accession, legislation allowing foreign property ownership has
been introduced.
- The current government has pledged to work towards lower taxes
and the privatization of state-operated industries in order to get
the economy moving much faster.
- Average rents in the popular areas of Kranjska Gora and Lake
Bled are between £400 and £700 per week depending on the quality
and size of the property and season, giving great returns to
investors.
Rental Yields
Rental yields in the country's capital Ljubljana are reasonable
at around 4.8% - 7% in the city centre and slightly higher at 5.85%
- 7.5% in the suburbs of Ljubljana. This is due to property prices
being a lot lower in suburb areas. Here property prices are at
€1,500 – €1,650 per sq. m. and in the city centre prices are around
€2,200 – €3,750. Property prices in Slovenia are said to be rising
by 10% -30% annually and therefore rental yields will increase.
Price History
Property prices have escalated in recent years with rises of
10-30% in some areas and are expected to continue rising into the
future. Following the adoption of the Euro in January 2007, prices
are expected to increase by 17.5%.
Much of the high-end accommodation is a similar price to other
EU states, especially in the capital, Ljubljana, a small and
beautiful town which has seen unprecedented rises. However,
bargains can still be found in Slovenia's rural, untouched
countryside.
Here there are still excellent opportunities for investment.
Rural property prices are low by European standards, meaning there
is good opportunity for capital appreciation. Prices start from
£30,000 for a renovation property whilst picturesque mountain
chalets start from £50,000 – a fraction of the prices in France.
For £70,000 you can buy a pretty thatched house surrounded by
vineyards and forest.
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