Mortgage tightening drives Slovak residential demand

by   CIJ iDesk I
2018-05-28   10:44
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Demand for flats in Slovakia is rising, according to in the daily SME, especially among those who fear that a further tightening of restrictions on mortgage loans is coming. The Slovak National Bank is concerned that the residential market is overheating, and that Slovak consumer borrowing is getting out of control, so it's looking to make it tougher to buy property on credit. The trend was noted by Vladimir Kubricky, an analyst at the Slovak Real Estate Union. He said that the average price for a flat in Slovakia's regional cities rose from €1,534 in March to €1,558 per square meter in April. "Demand for flats will probably not fall in the coming months and supply is unlikely to increase," said Kubricky. "The rise in prices might not affect all market segments, for example the one for larger units and the luxury sector along with family homes." The most expensive two-bedroom flats are to be find in Bratislava (€2,362/sqm), while they can be had for between €1,450 and €1,550 per square meter in Trnava, Nitra and in Košice. Beginning in July, new mortgages won't be given to those whose total debt to income ratio exceeds eight of their annual salaries.