Welcome to the October issue of our Slovakia Newsletter.
Let's start with a brief announcement - our website has
been updated to improve your viewing experience. A more
comprehensive version of the Properties page, periodic
Economic Update archives, new Tax Overview, a Property
Blog...these are some of the new features we trust you
will enjoy. All comments and suggestions are welcome!
Today we are starting our new series featuring an overview
of Slovakia's property markets. Some of the segments to
be covered over the next few months are the residential
and commercial property sectors, investment strategies for
the Slovak market (buy-to-let/buy-to-sell), evolution of
mortgage finance.
We will also bring you information on land investment and
Slovak construction and development market. A special on
Bratislava's five districts and their potential for
property investment will follow.
So, if you are looking to invest in Slovakia, don't miss
our monthly Newsletter issues! Enjoy reading...
In this issue you will find:
1. Strong Economy, Bright Future
2. 2005 in Housing Construction & Mortgage Finance
3. Slovakia's New Skiing Boom
4. Your Questions Answered (mortgage lenders)
5. Win a Bottle of 'Tokaj'! (Prize Draw)
6. Tell Us What You Think!
===================== FEATURE EDITORIAL =================
1) Strong Economy, Bright Future
=========================================================
A few days after inauguration of Ryan Air's London-Bratislava
and Sky Europe's Dublin flights, and the Bratislava airport
receiving its 1,000,000th passenger this year, the Slovak
tourism industry is showing a healthy growth.
According to the National Bank of Slovakia, tourism income
has risen by 40% in the first 7 months of 2005 compared to
the same period in 2004. 10% more foreign visitors came to
Slovakia this year, and the number of overnight stays has
also grown by over 10% y/o/y.
The high (40%) revenue growth is partially due to business
visitors whose stays are shorter but spending is much higher.
Top destinations for tourists continue to be Bratislava,
High and Low Tatras, as well as spas and acqua parks.
The Slovak capital aims to further increase its appeal to
visitors. Renovation of the historic areas, an improved
system of direction signs in english language, a recently
re-opened cable car to the Kamzik peak, a new 16-seater
monorail to the Bratislava castle (planned for late 2006)
are some of the new attractions and improvements to make
Bratislava visitors feel welcome.
* * *
Meanwhile, Slovakia's economy continues at full speed. The
Ministry of Finance expects a GDP growth of 5.4%-6.1% p.a.
in 2006-7, while inflation should be kept down to 2% with
a budget deficit of 2.9%. Slovakia will be the first Central
European country to adopt euro (January 2009), leaving
Czech republic, Poland and Hungary behind once again.
=========================================================
2) 2005 in Housing Construction & Mortgage Finance
=========================================================
Although demand for new housing keeps increasing strongly,
Slovakia's construction rates continue low. In the first
half of 2005, 6152 new properties were built - a 13.6%
increase y/o/y. (5507 of these were built by the private
sector and 645 by the public sector.) Of the 6152 properties,
3652 were in family houses.
The highest number of properties (2143) were built in the
Bratislava region, and the lowest (271) in the Banska
Bystrica region.
Construction started on 4378 properties, which is 15% less
than in the same period last year.
On the other hand, Slovakia is experiencing an unprecedented
popularity of mortgage finance. While five years ago Slovaks
barely used any type of bank loans, today the country is
Europe's leader in mortgage market growth. Over the last 4
years, Slovakia has seen a 50% growth in mortgages taken out
each year. (In the EU it was under 9% p.a.)
The reason for this boom, however, is the extremely low
starting point - Slovakia has the second-lowest volume of
mortgages (as a % of GDP) in the EU (after Slovenia) and
still a very long way to catch up.
The highest number of mortgages has been taken out in
Bratislava (40-70% depending on bank) where loans are mostly
used for property purchase. In other regions and smaller
towns mortgages and loans are frequently used for renovation
or extension of existing homes.
=========================================================
3) Slovakia's New Skiing Boom
=========================================================
With skiing season in Slovakia starting in just over a
month time, the country's ski resorts, big and small, are
hoping for another good winter.
Slovakia is rich in ski slopes with good snow conditions,
yet the facilities and infrastructure in the various ski
resorts vary wildly. Many resorts now recognize the need
for investment not just into new slopes but additional
services and attractions as well.
Today's visitors are looking for more than just skiing,
and some of Slovakia's resorts are increasingly ready
to attract even the more demanding tourists.
In Park Snow Donovaly (Low Tatras) new attractions are
awaiting visitors this season - a brand new cabin cable
car (6+8 seater) with capacity of 2,600 persons/hour,
new ski slopes to Nova Hola peak, two new lifts to inter-
connect existing slopes, as well as further night-skiing
facilities.
A free ski bus to Donovaly will be available from Banska
Bystrica bus station. Special ski busses will also bring
visitors from Bratislava, Trnava, Trencin and other main
cities, as well as from the Czech republic.
Visitors will find an extended range of services, equipment
rentals, as well as a new Fun Park where animators will
take care of the youngest. Investment doesn't stop this
year though - new sport facilities (among others a large
ice rink for skating and curling) are planned for 2007.
While Donovaly may be the most innovative this year, other
well known resorts are keen to provide additional services
too. Jasna, a highly popular Low Tatras resort offers -
apart from its 21 ski slopes - extensive sport and leisure
attractions. Freeride slopes, snowboard park, ice rink,
along with the more exotic paragliding and snow-rafting
are certain to keep every visitor busy.
The fast growing northern Slovak resort of Velka Raca-
Oscadnica has prepared new attractions for this season. The
most talked about is the new bob-sleigh track - the longest
in Central Europe. Already in 2004 Velka Raca had invested
into a new mixed cable car (6+8), as well as new eateries
and accomodation facilities. This season, ski busses will
start bringing tourists from main Slovak cities.
Visitors of the popular Ski Park Ruzomberok not only are
attracted by the high quality of slopes and several lifts,
cable cars and a new 8-seater gondola, but also by less
traditional sport facilities such as snowtubing, paintball,
paragliding. The nearby thermal spa of Besenova (12 km away)
offers interesting relaxation options after a long day skiing.
After many years of falling tourist numbers Slovakia's ski
resorts are at the beginning of a new boom. Large scale
investment into new as as well as improvement of existing
facilities, increasing quality of services, along with
excellent skiing conditions, the beauty of the unspoilt
Tatra nature and friendliness of the local people should,
in the coming years, restore the Tatra mountains' appeal
as one of Europe's exciting winter destinations.
* * * DON'T MISS! * * *
We will soon be releasing a wonderful investment & leisure
opportunity in the Low Tatras' most sought-after ski area.
Beautiful new wooden chalets in one of Europe's last unspoilt
mountain regions will start from just £50,000 (for an 80 m2,
2 bedroom home over 2 floors) including land plot and VAT!
Rental guarantees are being arranged and will benefit those
buying for investment. And with purchase prices 20-30% lower
than similar new properties in comparable areas, you can
hardly go wrong with these amazing traditionally crafted
homes.
Whether you are looking for a lucrative investment or a
beautiful, high quality vacation home in one of Europe's
most breathtaking locations, this is your chance to own a
piece of a true paradise.
Don't miss it - Register your interest Now!
=========================================================
4) Your Questions Answered (mortgage lenders)
=========================================================
"I want to arrange a mortgage for a property purchase in
Slovakia. Where do I find a list of Slovak mortgage lenders?"
There are 10 banks holding a mortgage licence in Slovakia:
Slovenska sporitelna, Tatra banka, VUB, CSOB, Unibanka,
Dexia banka Slovensko, HVB Bank Slovakia, Istrobanka,
OTP Banka, Ludova banka.
Some are less willing to offer mortgages to foreigners
than others. (Lenders less likely to give a loan to a
non-resident are currently CSOB, HVB Bank, Ludova banka.
Tatra banka may go case by case.)
All lenders require proof of income, interest rates
typically range from 4-6.5%, mortgage terms from 4-30
years. Maximum age by which loans must be paid off is 65.
We at Slovakia Investment Property offer a mortgage
service and will be pleased to arrange you a local loan,
subject to status and income proof.
If you have any question you want to see answered here,
please send it to us: contact@slovakiainvestmentproperty.com
=========================================================
5) WIN a Bottle of 'Tokaj'! (Prize Draw)
=========================================================
As every month, it is again time to give one of you the
chance to win a bottle of Slovakia's famous Tokay wine.
The lucky September winner is Ms. G. Welby. Congratulations!
All you have to do to be entered into the prize draw is email
your answer to our Question of the Month before 15 November to:
competition@slovakiainvestmentproperty.com.
It's as easy as that! We will contact the winner to obtain
the postal address. Good luck!
Question of the Month:
If you have already visited Slovakia, what was the most
positive experience (things you liked or were satisfied
with) and what the most negative?
In case you haven't been to Slovakia but wish to go,
which areas/regions do you want to visit and what is the
purpose of your planned trip (ie tourism, skiing, weekend
break, business, property viewings, etc)?
=========================================================
6) Tell Us What You Think!
=========================================================
We would love to hear what you think of this issue of our
newsletter. We hope you find the information useful and
wish you best success in your investment activities.
And of course, if you have any suggestions for upcoming
issues that you'd like to share with us, please send them!
Just e-mail us at: contact@slovakiainvestmentproperty.com
=========================================================
We are looking forward to seeing you next month. In the
meantime, if you have any questions or would like to
request further information, please contact us at
info@slovakiainvestmentproperty.com or at
+44 (0)207 152 4014.
Best of success,
Petra Gajdosikova
Managing Director
Slovakia Investment Property
www.slovakiainvestmentproperty.com
=========================================================
Copyright 2004-2005, Slovakia Investment Property
All rights reserved
Slovakia Investment Property is a trading name of
Alpha Real Estate Investments Limited