The price of residential and commercial plots for construction fell by 10% on average compared to 2009. The most substantial fall was registered in Nitra County in the west (20%), the least in Košice County in the east (2%). Despite strong demand, prices of buildable land fell by 16% in Bratislava.

The most interesting areas for residential developments in Bratislava are Dúbravka and Nové Mesto. The price of one square meter was 500-600 EUR in these parts of Bratislava a few months ago. Nowadays, it is 15-20% cheaper.

The price of industrial land stayed approximately at the same level as in 2009. They sell in the range of 30-80 EUR per square meter all over the Slovak Republic.

Demand for commercial real estate is the strongest in Bratislava (mainly in the vicinity of the airport and Dúbravka) as well as Košice.

Colliers International expects fixed prices of property throughout 2010. The first important transactions in this segment are expected to come in the second part of the year.

Slovak banks lend more as before recession

According to the National Bank of Slovakia, the Slovak banks approved mortgages in amount of 1.54 billion EUR in the first half of 2010. This is 4% more than in the first half of 2008, still the boom period.

Commercial

Colliers International reported an increase in inquiries for commercial property this summer. Two larger transactions in the last 6 months include the purchase of the 4-star Hotel Mercur (Accor) in Bratislava, close to the Main Train Station, with 175 uniquely designed rooms, opening on September 1, 2010; and the 272-million-euro purchase of a division of Volksbank Europolis by CA Immobilien Anlagen AG, expanding its eastern Europe property holdings, in Bratislava and Chorvátsky Grob.

Slovakia Ring

Quietly, without too much fanfare a brand new 5922m race track came to life in the middle of Europe. The location is near Dunajska Streda, 50 km from Bratislava, 125 km from Vienna, and 150 km from Budapest. Although it has no ambitions to host F1 races, the top-notch facility and the diverse programs arranged around it look impressive. The official opening of the 24.9-million-euro project was April 9, 2010. This is how the official track website describes the venue:

Being a top-notch training facility for motorists, Slovakia Ring is now bringing a unique chance for you to improve your driving skills, try a fast ride, exercise your driving techniques or just enjoy the freedom of sitting behind the wheel. Motorcycle enthusiasts as well as the owners of high performance automobiles will certainly appreciate the unique space for trying the limits of their “swift horses” and an exceptional opportunity to experience the feelings of professionals who run real races. On the other hand, racing teams and agencies have been given an ideal space for conducting racing events of outstanding quality in every aspect.

There is much construction work going on around the facility, including a 84-bed 3-star hotel. The expected number of foreign tourists annually is 40,000, providing income for hundreds of local Slovaks. Such developments enhance the excellent touristic appeal of Slovakia with the Tatra Mountains, thermal baths, wine country, horse-riding, hunting excursions, and water sports.

Martin Melisko www.ceinvest.sk