Slovenia’s Commercial Real Estate Market in 2024

A preliminary report on the commercial real estate market in 2024 has been published by the Surveying and Mapping Authority of the Republic of Slovenia (GURS).

According to preliminary data, last year the average price of office space rose by 4%, while retail space prices increased by 11%. Rental rates also became more expensive.

Both sales and rental prices increased in the commercial real estate market last year, while the number of transactions decreased, according to the GURS report. The average purchase and sale price for office space grew by 4%. The median sale price in Slovenia was €1,283 per square meter.

The leading region was the coastal area, where the median price reached €2,187 per square meter. Ljubljana followed with €1,908, and Maribor with €1,207 per square meter.

Most sales involved older and smaller office spaces. On average, the properties sold were built around 1980, with an average sold area of 64 square meters.

Over the past five years, the value of office space has increased by an average of 41%. The coastal region, where prices rose by 50%, stands out significantly from the national average.

Office Rents Also Increasing

Last year, office rental rates increased compared to 2023. The average monthly rent in Slovenia was €10.4 per square meter. In Ljubljana and on the coast, this figure was €12, and in Maribor-€8.8 per square meter. The highest office rents were in central Ljubljana, where the median reached €15 per square meter.

According to the GURS report, rented office spaces were also mostly older and small (average year built: 1980, average rented area: 34 square meters).

Preliminary data indicate that last year GURS recorded 280 office sale transactions, totaling €59 million and a total sold area of 43,600 square meters. It is estimated that the final number of contracts concluded during the year will be between 290 and 300, which is about 15% fewer than the previous year.

Their total value is expected to be between €61 and €63 million, about a quarter more than the previous year, and the total sold area will be between 45,000 and 47,000 square meters, approximately 7% more.

Retail Space Prices Up by More Than 10%

Retail and service space prices rose by an average of 11%. The median sale price nationwide was €1,229 per square meter. In Ljubljana, it was €2,494, in Maribor-€1,200, and on the coast-€2,507 per square meter. The highest prices were in central Ljubljana, where the median was €3,539 per square meter.

Most sales involved small and older retail and service spaces (average year built: 1987, average sold area: 64 square meters).

Over the past five years, prices for retail and service spaces have risen by an average of 28%. The Ljubljana region stands out significantly from the national average, with a 44% increase.

Retail Rents Highest in Central Ljubljana

The average monthly rent nationwide was just under €12 per square meter, just under €14 for spaces up to 100 square meters, and €9 per square meter for spaces over 1,000 square meters.

In Ljubljana, the median rent was €18, in central Ljubljana-€21, in Maribor-€11, and on the coast-€13 per square meter.

According to GURS, 266 retail and service space sale contracts have been registered for 2024, with a total value of €108 million and a total sold area of 84,000 square meters.

Based on this, it is estimated that the final number of contracts concluded in Slovenia during the past year will be between 280 and 290, about one-fifth fewer than the previous year. Their total value will be between €110 and €112 million, which is 37% more, and the total sold area will be between 86,000 and 88,000 square meters, about 3% less than the previous year.

Industrial Buildings up to €1,200 per Square Meter

GURS notes that due to the limited number of sale and rental transactions, it is not possible to reliably assess changes in prices and rental rates for industrial properties. Last year, the range of sale prices was also very wide due to the diversity and size of the properties.

Prices ranged from €300 per square meter for large, old industrial buildings outside major transport routes to €1,200 per square meter for more modern industrial spaces in Ljubljana and its surroundings. Most production and warehouse spaces were sold at prices between €400 and €800 per square meter. The average sold area was 448 square meters, and the average year built was 1976.

The report shows that although sample sizes are small and the calculated indicators are unreliable, the trend of rising prices in the country over the past five years is clear, including in the industrial real estate sector.

According to preliminary data, last year 61 industrial property sale contracts were recorded, totaling €35.9 million and a total sold area of 60,000 square meters. It is estimated that the final number of sale contracts will be between 64 and 67, with a total value of €38–40 million and a total sold area of 63,000–67,000 square meters.

Until 2022, an average of 90 to 100 industrial property sale contracts were concluded annually, totaling €25–27 million. However, over the past two years, there has been a noticeable decline in the number of transactions, most pronounced in 2023, when the number nearly halved.

Source: https://forbes.n1info.si/nepremicnine/trg-poslovnih-nepremicnin-cene-rastejo-stevilo-poslov-upada/