News: Slovakia set to boom in 2008

Thu, 15 Nov 07

Property prices are set to soar across Slovakia in 2008...

Property Secrets have revealed their property price forecast for 2008, predicting rising prices for Slovakia in 2008.

The credit crisis this September left investors feeling somewhat uncertain where they should put their money and a little deflated by the property market, in general.

Simon Tweddle forecasts his 2008 property price predictions using a combination of fuzzy analysis and hard economic facts to get a more rounded and clearer picture.

Fuzzy analysis

In a nut-shell, ‘fuzzy analysis’ is the balance between the hard location, so the tangibles such as infrastructure or the economic factors on a macro level through to a particular zone. And the clever bit – the soft analysis – which is a little harder to explain. This could be emotive factors such as the feel of a place, good or bad associations with a location or whether the area has a pleasant or ugly name.

Tweddle elaborates: “These ‘soft’ factors are the ones that turn an average area into a desirable one which in turn will attract renters for your buy to let property. This is why we employ the ‘fuzzy analysis’ as a property investor wont find these key soft factors in any spreadsheet or annual book of economic statistics.”

So here are our predictions, including percentage growth for 2008 and whether the market is accelerating or decelerating since 2007 results:

Slovak Republic

There are signs that the strong economic performance is starting to filter into the property market. Expect to see slightly higher capital growth and low rental voids.

Bratislava 15% Accelerating

Market has consolidated somewhat over the last couple of years, it is now stronger with better finance. Growth will not be higher than in Prague but nevertheless should pick up compared to the last two years.

Trnava 10% Steady

Trnava will continue to be a strong base outside of the capital, growth here will be slower in the short term.

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