Does anyone have opinions on the recent surge in the Bratislava property prices. From the majority of reports it seems to be the place to be at present. However is the surge set to continue or is it now reaching a peak?

What impact also will joining the euro have on the nation?

Hi,

interesting point. Slovakia has had the highest growth rates in the E.U. for the last number of years (export driven), I always felt that the strength of the economy had not transfered properly into capital values. Locking into the euro on target was a great achivement, and I feel its created bit of a surge in the values. Coming from euroland I remember when the same period well, supermarkets and banks rounded up the decimal points, as well as increasing the prices everything they could get away with in the months before change over (it was everyone, not just banks and supermarkets, but they are my pet hate at the moment). Obvious result was that inflation picked up for a short period, people were unsure and held back from spending and things realingened well within a few months. I feel we will see the same thing in Slovakia. With regard to Bratislava property values, beware, there are some very over priced developments out there-result of the above mentioned- There are currently 70 developments ongoing in Bratislava, that should mean great choice and good value, It doesent. I intend to give it a few months, let things settle down and I will then run a P.S. deal from there in the Autumn.

Kind Regards

Steve Desmond

Investment Director

Visium Group

Would you say now is a time to buy or sell in Bratislava? I see the prices being pushed up by the eurozone but can it last and will the bubble burst shortly after inclusion.

Selling is subject to what was paid at acquisition. Rents and capital values are rising, if its a good renter, retain. The economy is the most stable in new europe.

The next few months aside, I feel that there will be more deals with better margins avaiable as developers realise that currency adoption, stuns the populas into a sit back and wait and see mode, it doesnt open their wallets. The Slovaks are alot more conservative than their czech cousins, so while the poulas comes to terms with the euro and developers realise they still have to bring value to the table- its time to have a look. That economy, that inflation rate etc. etc. its a steady ship.
Steven Desmond
Visium Group

Hi James. In my opiniion it is a good time to sell now. I have just sold my apartment in Bratislava with the tenants in as it was a good investment for the investor who was able to get a 4.24% mortgage rate as a local so therefore, I gained in the capital appreciation and so did the local investor.

Does anyone know what the Capital Gains Tax laws are in Bratislava?

I have been told that it is 19% CGT
LynnR