Commercial real estate in 2023. Prices rose, rents decreased.
How the Slovenian commercial real estate market fared in 2023.
The prices of commercial properties such as offices, retail, industrial property and premises for services, rose by 10% in 2023 but the number of transactions fell significantly. Rental transactions also declined.
The Surveying and Mapping Authority (GURS) assesses that the number of transactions in industrial premises decreased by around 40% to 40, for office space by 13% to 306, and for retail and services premises by 7% to 325 transactions compared to the previous year.
“The main reason for the decline in sale transactions was the more expensive financing of purchases as a result of the increase in interest rates,” GURS noted in its annual report.
“Although the number of concluded commercial real estate sale and purchase transactions in Slovenia has been declining for the past two years, this does not mean that there could be a crisis in the commercial real estate market on a scale witnessed during the recession after 2008,” GURS commented.
The number of rental deals declined by 15-20%, while rents were up by about 3%.
The most substantial decrease was recorded in rental transactions for retail and services premises and industrial space, by 20-25% in both categories. Rental deals for offices fell by 10-15%.
The median monthly rent for retail and services premises was €12 per square metre, while the median sale price was €595 per square metre, up 56% on 2022.
The median rent for office space was €10 per square metre. In Ljubljana it was around €12, in Maribor a little less than €10 and on the coast a little more than €10.
The median sale price was €1,196 per square metre (+15%) – in Ljubljana it was €1,694 (+1.6%), in Maribor €1,120 (+26.1%) and on the coast €1,986 (-1.8%).
Meanwhile, industrial space was rented out for about €5 per square metre (+11%) – in Ljubljana it was €6.5 (+8%), in Maribor €2.6 (-13%) and on the coast €5.8 (+7%).
The median sale price was €595 per square metre (+56%) – in Ljubljana €987 (+19%) and in Maribor €574 (+75 %). There were no sale transactions in industrial premises on the coast.
Source: https://sloveniatimes.com/40285/commercial-property-prices-up-in-2023-on-fewer-transactions
