Latest data from the country's central bank shows property prices started to rocket at the end of last year in Slovakia - the country that is arguably the EU's biggest economic success story right now.

Most interesting is that most of the growth came in the last quarter of the year - meaning we are at the start of a sharp upturn in accelerated property price growth.

Fastest price growth was seen in the Košice region where in Q4 property prices grew year on year by 61.3%.

The Banská Bystrica and Žilina regions experienced property price growth for the same period of over 50%. The Nitra region was not far behind this level.

Prices in the Prešov, Trenčín and Bratislava regions grew by around 30%, with Trnava experiencing a 20% increase.

All regions reflected this accelerated growth at the back end of 2007.

The country's average price growth for the fourth quarter was a very healthy 32.5% - compared to a growth rate of 24% for the whole of the year: clear evidence the market is heating up.

Despite the higher percentage growth in other regions, in absolute terms, property prices in Bratislava continued to grow faster than in other regions.

In Q4, prices per square meter in Bratislava rose went up by SKK12,358 psm to average SKK 56,000.

Source: Národná banka Slovenska
BA - Bratislava, TT - Trnava, NR - Nitra, TN - Trenčín, ZA - Žilina, BB - Banská Bystrica, KE - Košice, PO - Prešov

If you look at the data released this week by the Slovak statistical office, we can can see why property prices have started to rocket - Slovakia's economy is booming! 



What's more - and most importantly - it's booming because of export led growth, which means the growth doesn't translate into spiraling inflation.

That's what makes Slovakia special and different from the Baltics, which had the growth but also the huge inflation that went with it and those three - Latvia, Estonia and Lithuania - have all effectively kissed goodbye to joining the euro until well after 2010. 



Slovakian GDP expanded a record 14.1% in Q4 of 2007 - the fastest growth in the EU by far. 

This is up from a blistering 9.4% growth in Q3. 



You don't need to be an economist to figure that this kind of growth, plus in-check inflation (3.8% in December) equals jobs (employment up 2.3% year on year) and big rises in affluence - and, by extension, demand for better quality property. 



The key to this spectacular growth has got to be the massive investments by big corporates, notably major car makers, like Peugeot-Citroen and Kia. 



This is a classic slow burn effect of big injections of FDI - the car factories take a while to get built and come on stream at maximum capacity - that's why we've seen this leap in growth in Slovakia in the last year or so. 



And it's also why it looks as near certain as these things ever are that the country will adopt the euro in under 12 months - providing another boost to the economy. 



Until then the koruna is pegged to the euro in ERM and looks rock solid.
Meanwhile, at least one of those giant car producers - Peugeot - is also very bullish about sales projections and profit forecasts for this year, expecting sales to grow 5%.

The main engine of that growth will be outside of Western Europe, the company said - and in developing countries: South America, China, Russia and Eastern Europe, said the company. 



All great news for Slovakia then....