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News: Bratislava: the gem of Slovakia

Thu, 08 Nov 07

Bratislava has been voted the 6th best place for overseas property investment, due to a reported 20% appreciation...

In a property report compiled for the Daily Telegraph, Bratislava came within the top ten places to make money from property, and as a popular jet-to-let choice for overseas property investment; the strategic location provides vast potential return.

Obelisk’s research has shown the average property and rental prices in Bratislava are over half the price of property in Austria and at only one-hour’s drive from Vienna, Bratislava provides an appealing commuter base for the Viennese.

Appealing investment

Tim van Dijk Project Manager at Obelisk comments, ‘Slovakia is one of the most attractive FDI destinations, with low flat-rate tax of 19% and various incentives for all types of investors. Slovakia has considerably reformed its legal system in order to attract more FDI and is now one of the most appealing overseas property investment options in Europe.’

The World Bank has praised the fast changing business environment in Bratislava, and a huge overhaul on the tax and social welfare systems is attracting more foreign investors. The stable economy is forecast to grow at an average 4% per annum, giving a clear indication that Slovakia’s economy is developing swiftly. Property price growth is set to continue at 15–20% for several years, fuelled by the huge demand from locals for quality properties.

Outperforming its neighbours in terms of attracting top brand manufacturers, Slovakia is now the largest per capita carmaker, with names such as Peugeot- CitroŽn, Volkswagen, Ford, Kia, and Hyundai. With the increased employment comes an increase in disposable income. This coupled with a liberalisation of the financial services market has prompted a strong local demand for property, further influencing property prices.

New build demand ‘strongest’

Demand is strongest for new-build apartments in Bratislava. A new motorway connecting the city with Vienna will be completed soon, which will reduce the travel time by 30 minutes, as well as the low cost airline services to and from the UK. The centre of Bratislava has a combination of many historical elements from medieval to baroque, 19th century to early 20th century with tree lined squares and avenues lining the Danube.

The relocation of foreign manufacturers and an enormous amount of construction of new infrastructure are clearly visible. Unemployment is falling at a significant rate and a considerable increase in tourism has taken place, helped by the increase in budget airline carriers.

Van Dijk concludes, ‘The new off-plan developments in and around Bratislava may ease foreign demand for property investment, but the vast local demand will not only provide longevity to the market, but will also aid the short hold investor when entering the resale market.’

For more information: http://www.obeliskinternational.com/

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