DBPapers
DOI: 10.5593/SGEM2016/B53/S21.057

POST-CRISIS DEVELOPMENT OF RESIDENTIAL REAL ESTATE PRICES AND THEIR DETERMINANTS OF INFLUENCE IN SLOVAKIA

J.Golej, M.Panik, D.Spirkova
Wednesday 7 September 2016 by Libadmin2016

References: 16th International Multidisciplinary Scientific GeoConference SGEM 2016, www.sgem.org, SGEM2016 Conference Proceedings, ISBN 978-619-7105-67-4 / ISSN 1314-2704, June 28 - July 6, 2016, Book5 Vol. 3, 441-452 pp

ABSTRACT
During the whole year 2015 in Slovakia there were significant price increase in residential real estate, which was caused mostly by the rapidly increasing demand for apartments. Annual growth of average prices of flats by 6.4% in the fourth quarter of 2015 exceed 6%, which the European Commission determined as the threshold value for a warning against potential risk of macroeconomic imbalance due to stronger annual growth in housing prices. From this perspective, the future development of apartment prices in Slovak conditions deserves more attention in several regions. Significantly increasing demand for housing and its dynamically growing prices are perceived by some observers as a possible signal of inflating a new real estate bubble. However it must be add that these activities on the Slovak housing market at the end of 2015 clearly contributed to more and more favorable credit terms. In the near future, it can be expected remaining a persistent interest of households in satisfying their housing needs. In the following article, authors explore determinants of the impact on the current growth of residential real estate prices in Slovakia and their interdependencies.

Keywords: residential real estate prices, Slovakia, interest rate, real estate bubble