Apartments in Ljubljana: have record prices and fewer sales.
Apartments in Ljubljana. The number of sales of secondary apartments in the capital fell for the third time in a row in the third quarter of this year, and the number of transactions during this period was the lowest since the third quarter of 2013. In Ljubljana, 132 transactions were completed, almost half as many as in the previous quarter, the average price per square meter remains above 3,700 euros.
Graph 1: Sales volume and average price of apartments in Ljubljana
The significantly decreased demand for apartments in Ljubljana did not affect their prices. The average price per square meter of a non-new apartment remains only a few tens of euros below the record of the second quarter of this year. Apparently, apartment sellers, of which there are almost a thousand units for sale in Ljubljana alone, according to the largest online real estate portal, are not ready to reduce prices.
Graph 2: Average price of new and secondary market apartments in Ljubljana
New apartments are only seven percent more expensive than old ones.
In Q3 2023, the price difference between new and secondary market apartments has noticeably decreased. The average price of new used apartments (that is, less than 10 years old) fell from 4,260 euros to 4,000 per square meter, while the average price per square meter of apartments older than 10 years rose to more than 3,700 euros. The biggest difference between the two housing segments was in the second quarter of last year, when it was almost 15%.
Will housing prices stabilize?
We have reached the peak, prices will not rise anymore, real estate experts say. Will they fall? Opinions differ on this matter. Loans are now more expensive than a year ago. Key interest rates are already forecast to fall next year, which will also affect the Euribor interbank interest rate, which is used for loans.
However, there is a chronic shortage of supply in the real estate market. Apartments are not being built at such a pace because they are being absorbed by demand, including investment demand.
