Is Bratislava overpriced?

riviera said:
It looks like a good deal financially and the prices are very reasonable. What is the finance situation? How much do they give to foreigners?

I was there a while back. Very soul-less place. Like they had a law banning people from talking loudly.
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Slightly off-topic but I was there in Feb 2007 with the g/f at the time and there was something about Bratislava, soul-less is definitely one way of putting it. It's like no one laughs or has this gloomy atmosphere. Maybe it was just that time of year.. anyways.
 
The general ambience in a destination is a primary factor in a lifestyle purchase but shouldn't be an issue in investment. Some of the roughest places in the world are good spots to invest.
Back on topic, if you compare Slovakia to Germany for example, the psyche in terms of property is completely different. The reason the yields are so high in Germany is that historically the Germans are renters, not buyers. If you pay for your property in ten years in Germany thats great, but will the capital value have increased? The same applies to the French leasebacks - guaranteed returns but not great potential for capital appreciation.
Slovakians are buyers (similiar to the Poles) and therefore capital appreciation is a key ingredient in a successful investment there. In an emerging market this may affect yields but it makes for a more sustainable longterm investment.
It is a particularly Irish slant, I believe, on property investment that rental yields are the be all and end all. This is why the "guaranteed rental" on developments in Bulgaria etc. sold so well to the Irish
 
Property is a long term investment and yields are the primary factor. I don't think it's an Irish idea. Mortgages need to be paid and if strong consistent yields are not part of the investment, then I would have huge concerns. Capital appreciation can never be factored in accurately, although of course it's a great side benefit if/when it does.
 
A little tip for investors...
From an industry point of view, the primary factor showing the strenght of an indigenous property market is how easy/difficult it is to secure quality developments as an overseas property agency to market.
Demand is so strong locally that developers dont require agencies to sell their developments in Ireland and the UK.
Only the leading agencies with a strong track record in sales will get a bite at the market.
Therefore, if you find it difficult to source properties in a specific location from an Irish or UK agency, odds are that is because the local market is so strong (or it's not on other investors radars) and this is where you should be investing
 
Would someone know why property guide like :
announce yield in Bratislava at above 10% ?

This yield is surely one of the best in Europe if true ...Would someone knows then how such a big difference can exist between the yield discussed here on the forum (about 5%) and the yield registered on other famous property guide?

Thanks for any comments / point on view?

Christme
 
As a rule of thumb. If the locals cannot afford the prices you are being quoted to purchase residential property, dont touch it, these prices are false and over inflated, by the developers.

If you try to pay for the investment by locals renting off you, you will find that you will not be able to achieve anything near what you need to cover mortage costs.

I would suggest Germany is a better market at present, however go there yourself and talk to German agents and view a few properties without involving any overseas developers.
 
Thanks Tormented!

But how would you explain the yield differences quoted here on the forum 5% and the "global property guide" of 10% . The property guide is supposed to give information of nearly all the markets throughout the globus. Seems really wierd they have their rating so badly wrong for Bratislava ?

Any others views on this?
 
In my experience, most of the statistics on Global Property Guide are incorrect or out of date. It gives a general overview of property markets but can rarely be relied on for up-to-date information.
 

The answer is quite simple actually, the prices quoted are incorrect, thus why the yield is high. The rents are fairly accurate, but for example that place for 65,000 is more like 100,000. So your more or less looking at 5-7% yield
Tormented, I would strongly disagree on your point on germany, I think it is nowhere near and has nowhere near the potential of bratislava for growth. Germany is about as good as a french leaseback. and even saying that recent reports suggest property is devaluing there, and it certainly isnt in bratislava.
Your point on the agents developers is interesting....what about good old Kendar Holdings
 
ok Budapest , it could then be the reason!
So where would you go to have more updated info on current yield in CEE countries ?

I have also received information that by 2011 , 15 000 Appartments will be build reaching the point where Supply meet Demand. The capital growth will be then minimal and the yield kept under pressure... In this condition, i am not sure Bratislava can make a good investment at all ....:!
 

If its as good as your last information then you might want to avoid giving it too much credibility. 15,000 apartments is nothing in the grand scheme of things. Over time all of those wretched old communist block buildings will be knocked down and replaced. The suburbs are growing very fast with relocation of new factories. You have rich suburbs and poorer ones, ie. the killineys and the tallaghts. Tallaght has 100,000 houses I beleive.
The city is growing fast, the new motorway has been opened linking to Buda, Prague and vienna. Wages are increasing attracting people from other cities.
All in all to say that 15,000 apts over 3 years in a growing capital city is going to cover demand is crazy talk
 
Ballymore have just launched their Eurovea project in Bratislava. The prices are the most expensive I have seen in the city per sq/m but the location is phenomenal.
Quinlan private have just anounced and investment in the city of €1.5billion for a mixed use development. Thats a pretty strong endorsement from an investment fund vehicle.
 
Hi GDE,

This information is yes reliable ...It comes from directly from an extensive study from Colliers International .

The fact that 15000 Appartments will meet the demand in a small city like Bratislava is also from Colliers...Actually it is the same number that was build from the communist time between 1979-1989 when the number of inhabitant was also growing In Bratislava....

Colliers International gives market trend and as they have given in the last report about Romania, they are not expecting the supply to meet demand in Bucharest. However their studies from Slovakia has shown that the supply will meet the demand and that the growth will then reach only the high of the inflation (2,5%). It is not good new for capital growth !

Sorry if people are not pleased with this sort of information but Colliers is normaly a reliable source...

CCM
 

Its not that Im not pleased!, I dont have any operations in Bratislava. Colliers are an estate agent. If you had major operations in Romania, you wouldnt want your potential buyers looking to other central and eastern european markets. When you are dealing with agents there is always a slant on everything for their benefit. The bigger the agent the easier they can get away with it because people are less willing to question major firms. There is also huge amounts of construction going on in romania at the moment. I would love to see this report
The market may be overpriced in bratislava, but Ill have to see supply meeting demand to beleive it
 
Hi GDE,

I could give you the report if you are interested.

The supply could meet the demand far easier in Bratislava with 1/2 million inhabitant as with Bucharest with 4 millions. So you need really much more developement in the Romanian Capital to have the same effect as on Bratislava.

Also and funny enough, it was the Colliers Office of Bratislava itself who told me to be wary about the current markent in Bratislava. I cannot see their advantage to say something like this to a potential investor, do you?
 
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