On an average people living in Bratislava earn up to 50% more than those living in the countryside. The real estate prices in Bratislava are two times higher than those in the countryside. Over 70% of real estate transactions in Slovakia take place in Bratislava and adjoining regions, and about 80% of all mortgage contracts are realized in Bratislava. This year mortgage sales have increased by 18%. The unemployment rate in Slovakia is over 10% and in Bratislava it is 4%. Between 2009 and 2011 the number of newly built unsold apartments in Bratislava decreased from 5000 to 3000. About 85% of the Slovakians own property without any mortgage.

Also known as the country of property owners, the ownership rate for family houses and apartments in Slovakia is the highest among all the EU countries. The proportion of tenants in Slovakia is estimated to be less than 10%, although the exact number is hard to find as some rental units are not registered with the tax office. According to real estate experts Slovaks prefer to own their own dwelling because of their conservative nature, and the feeling of security it provides. A majority of Slovaks prefer to travel for work daily or weekly, rather than changing their residence. On the other hand a lot of Americans permanently relocate for new jobs as many as 10 times during their lifetime. Although Slovaks prefer to own a property than renting, real estate experts say that the rental apartment market was quite lively in 2011.

In the first half of 2011 the industrial real estate market in Slovakia showed signs of recovery. At the end of July about 1.015 million square meters were occupied by industries in Slovakia and the average vacancy rate was only 2.5%, which is the lowest in the entire central European region. Depending on the location and quality of the property the rent for industries and logistics A – category real estate ranged between €3.20 and €5.50 per square meter per month.

The key points in a Slovakian real estate contract include the rental price, the conditions and period of the agreement, mode of payment, dates, and protection against damages to the property. While renting out a property, landlords in Slovakia should make sure that they get contract documents prepared from a lawyer, since there are several issues that can cause problems while renting an apartment, even though it is administratively easier than selling a property.

Since the rental agreement is an important document for both, the landlord and the tenant, it has to include some particular items. Slovakia’s public administration website particularly mentions that the contract must include a clear description of the property to be rented, its location, a clear statement of the monthly rent, a detailed description of the fixed equipment inside the apartment, and the condition of the flat. A Slovakian property contract should include a list of all furnishings, in case the apartment is furnished.

The contract should also include the rights and obligations of the landlord and the tenant in detail. In the rental contract the landlord is responsible for renting the flat in a suitable living condition. Usually it is the responsibility of the tenant in Slovakia to do small repairs caused by regular use of the apartment, and fix any damages caused by him or her, or pay the landlord for repairing the damages. According to the contract the tenant is generally not allowed to make any adjustments that would change the existing structure of the apartment, or make any significant change without the permission of the landlord.

The real estate contract in Slovakia also includes conditions to terminate the contract for both the parties, including the required notice period. A notice of three months is required by law in case the notice period is not specified in the contract. The notice period starts on the first day of the month following the month in which the termination notice is delivered. If the landlord terminates the contract for failure to pay rent, the Slovakian Civil Code prolongs this period to six months on the day when termination notice is delivered, wherein the tenant can prove that he or she is in material need, based on objective reasons.

A case study conducted in 2010 mapped emigrants from Bratislava living in the upper Žitný Ostrov area and around the Hungarian municipality of Rajka. The study suggests that the people living in these areas are true representatives of suburbanization who moved away from Bratislava to enjoy a peaceful environment and better living conditions. Almost everyone’s dream of buying their own apartment or house came true in the new place, which has now become their real home.

Being the only city of regional European importance in Slovakia, Bratislava looks like a metropolis in making. The suburban areas and variations in pricing of houses in the city centre and suburbs add up to the metropolis character of the city. Suburban neighborhoods also known as satellites of Bratislava have come up around the neighbouring towns of Pezinok, Stupava, Senec and Šamorín, as well as around some nearby municipalities in Hungary (Rajka) and Austria (Kittsee, Hainburg). Future projects include Triblavina, Kapitulské Polia, Bory, Južné Mesto (Southern City), and Domové Role.

According to Slovakian real estate experts it is hard to identify a typical customer who is looking for a suburban life. Along with young families this target market also includes elderly and retired couples who want to live a more quiet life and leave their city apartments for their children. A lot depends on how demanding the clients are and what is their motivation for moving out of the city. Young families who dream of owning their own family house but cannot afford to buy in the city due to financial reasons choose to live in suburbs. On the other hand they also want to be close to the city where they work, and their children study.

One of the major advantages is that the price of properties in suburbs of Bratislava is similar to the apartments available in the city. This is one of the key factors that have encouraged the suburbanization of Bratislava. The main reasons for moving to the suburbs are the prices of property, the proximity of a rural and countryside lifestyle in the vicinity of Bratislava, the closeness of relatives and friends, and a more economical lifestyle.

There are some disadvantages of living in the suburbs of Bratislava, of which transport infrastructure is the biggest. Most of the people living in suburbs work in the city, and have to commute to Bratislava on a daily basis. More than 60% people are not happy with the public transport links to Bratislava, and have to use their car everyday to reach city. But commuting by car to Bratislava is not easy either, as the daily commuters have to face traffic jams everyday from most directions. Another disadvantage is the lack of places like pubs where people usually socialize and small grocery stores. As a result the suburban people have to go far away to city centre to socialize and get groceries, which means that their house in the suburbs may consequently become just a place to sleep, or like a weekend cottage.

The trend of migrating to suburbs was dominant five years ago, where people from big cities were moving away from the hustle bustle of the busy city centers to quiet and peaceful localities. But over the time, the population in the suburbs increased so much that the existing facilities and infrastructure was not sufficient to cope with it. The daily tips to work or school, which were easy earlier have become more than problematic. Due to this problem the number of people migrating from cities to suburban areas has gone down significantly, and several clients have expressed the desire to move back to cities. Despite all these disadvantages the chances of success are still quite good if a developer can provide pleasant housing for a reasonable price in the vicinity of Bratislava.

A lot of people are interested in one or two bedroom apartments, and the realtors don’t expect that the prices for these will drop. Rental agreements with a price tag of about €300 a month are not seen in the market anymore. Standard apartments with a rent of €800 per month including fees are readily available in Bratislava, but it is difficult to find upscale apartments for €1,500 or more. Some construction companies are now focusing on building apartment primarily for rental purposes, such as the Diplomat Park or Hlboká 7 buildings in Bratislava. Currently the supply of apartments is limited in certain locations, and it is almost impossible to find a luxury apartment for rent outside Bratislava.

Majority of the existing business laws were adopted in the early 1990’s and were amended during the recent years to harmonize with the EU legislation. According to the law all the Slovak business companies, partnerships and cooperatives must be registered in the Commercial Register. This is also applicable for the foreigners engaged in regular entrepreneurial activities in Slovakia. The Commercial Code states that a foreign person is an individual domiciled abroad, or an entity whose seat is located outside Slovakia. An entity with its seat in Slovakia is considered to be a Slovak legal person.

A foreign citizen can establish a Slovak legal entity, or become the sole partner, member or shareholder of a Slovak legal entity, provided a sole founder or a sole partner, member or shareholder is admitted by law. Business activities performed by foreign companies in Slovakia are generally carried out through a Slovak subsidiary or through an enterprise or branch office of a foreign person located in Slovakia.

Slovakia is a mountainous country. The highest peak is Gerlachovsk (2.655 m), situated in the high Tatras mountains. The largest river in Slovakia in terms of volume is the Danube and the longest is the River Vah (390 km). The total are of Slovakia is 49,000 square kilometers. Slovakia shares common borders with Poland, Ukraine, Hungary, Austria and the Czech Republic. Much of the northern border of Slovakia is made up by the Carpathian and Tatras mountains, while the mighty River Danube flows in the South of Slovakia.

The capital city of Slovakia is Bratislava which is situated on the banks of river Danube. Bratislava is well connected to Vienna and Budapest through the river Danube. Koice is the second largest city located in the east of Slovakia near the Ukrainian border and is the most important banking and economic centre after Bratislava.

An important aspect of the property market in Slovakia is that, unlike other countries in Europe, there is still room for growth despite the recent economic recession. While construction in most of the European nations is expected to slow down, there is a good potential in Slovakia for both expansion of existing facilities and new construction projects.

Slovakia has become a favourite destination for many of the global property developers and investors since the last few years. Companies like Ballymore, Heitman and Rodamaco have already entered the market with a good amount of projects either completed or waiting to be. Major investment projects in the automobile industry like PSA Peugeot Citroen and KIA in Tsnava and Zilina respectively have been completed and have began production. The demand and supply created by these projects has attracted a huge amount of foreign investors who have either set up their own companies or acquired the existing local ones. The Slovak electronics industry is also becoming increasingly important with extensive investments made by the global giants like Samsung and Sony into LCD panels and TV set production.