Slovenia: Excellent investment opportunities close to first-rate spas and ski resorts

The real estate market seems to have bottomed out and is expected to start rising again

Ski-loving second-home buyers can find numerous alluring investment possibilities in Slovenia at the moment. The imposing landscape of the Julian Alps – the sunny side of the Alps – attracts an increasing number of visitors who want to spend their summer or winter holidays among enchanting views of the Alps and km-long ski runs while saving money; indeed, prices in Slovenia are lower than in Italy, Switzerland and Austria.

The small country of former Yugoslavia – that declared its independence in 1991 and joined the European Union in 2004 – boasts high-quality ski runs and hosts international ski competitions, such as the Ski World Cup.

The purchase of real estate properties in Slovenia can be very advantageous at the moment, as the market seems to have bottomed out and is expected to rise again. Holidays homes in Slovenia have preserved their value at the beginning of the economic recession because they are second homes: home owners were not in a harry to sell and have waited for a market upturn that has not occured, yet: now, they are starting to be weary of waiting and are selling at low prices.

Experts say that prices should start rising in tourist resorts while they could fall in some other regions of the country. A newly-built two-roomed apartment in Mojstrana – that is very close to Kranjska Gora, the most important winter sports town in Slovenia – costs about 165 thousand euros. Six months ago, the price was about 250 thousand euros. The price for a villa with a 1000-sqm garden has fallen from 1.6 million euros to 950 thousand euros approximately.

Kranjska Gora – that is located close to the Slovenian border with Italy and Austria – is the most important alpine centre in Slovenia. Prices have decreased, here, because the supply increased exceedingly after the new town-planning scheme was passed. Prices are stable at the moment and they should keep being stable for at least one year. Furthermore, the tourist market is very favourable and may grant a 5% gross yield on a yearly basis. Average prices in Kranjska Gora range around 3 thousand euros per square metre.

Most investors searching for real estate properties in Slovenia come from Italy. Second-home buyers are attracted by lower prices, first-rate spas and less restrictive laws on gambling.

Bled is another interesting investment destination. Here, prices are about 2 thousand euros per square metre. It is a lovely winter and summer holiday destination thanks to the presence of a renowned spa resort, the possibility to practise a wide range of sports and outdoor activities – such as fishing on the glacial Bled Lake and horseback riding – and its romantic scenery.

There are several advantageous buy-to-let investment opportunities at the disposal of domestic and foreign property purchasers, thanks to the development of tourism. Nature lovers may find excellent investment solutions in the enchanting area surrondung the wonderful Lake Bohinj – the largest permanent lake in the country – where rentals can grant an 8% gross yield per year.

Prices are lower in Goriška Brda – where apartments cost 1000 euros per square metre approximately – and in the Isonzo Valley. The valley is being revitalized and this could make real estate values increase.

Overseas buyers can purchase real estate properties in Slovenia more easily since the country has become a member of the European Union. Buyers are encouraged to buy also by the low additional costs involved in the purchase process: a 2% (negotiable) agency commission, 200 euros for legal charges and 200 euros for the register tax.

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