Slovakia’s residential property market is facing a growing mismatch between rising home prices and declining housing construction, with higher mortgage rates and worsening affordability adding pressure on buyers, according to a report by Global Property Guide.
The average asking price of residential property in Slovakia reached €3,041 per square metre in the second quarter of 2026, marking a 9.5% increase year-on-year and a 1.2% rise from the previous quarter, data from the National Bank of Slovakia (NBS) showed. After adjusting for inflation, prices increased by approximately 5.8%.
However, price growth has slowed from the double-digit increases recorded in 2025 and early 2026. Annual growth stood at 12.8% in the second quarter of 2025 and 11.3% in the first quarter of 2026 before easing in the subsequent quarter.
The slowdown comes as housing construction contracts and borrowing costs rise. According to preliminary data from the Statistical Office of the Slovak Republic, approximately 14,300 dwellings were completed in 2025, the lowest annual total since at least 2005.
Housing construction declines as supply tightens
The decline in construction continued into 2026. Slovakia completed 4,849 dwellings in the first half of the year, down 29% from the corresponding period in 2025. Construction started on 4,839 dwellings, approximately one-third fewer than a year earlier.
Compared with the first half of 2024, both housing completions and starts fell by more than 40%. At the end of June 2026, around 76,800 dwellings remained under construction, down 0.7% year-on-year.
The supply shortage has helped keep property prices resilient despite higher borrowing costs. However, Bratislava is seeing a different trend in its new-build market, where unsold inventory is increasing.
At the end of the second quarter of 2026, the Slovak capital had 4,231 unsold new apartments across 105 development projects, approximately 25% more than a year earlier. The number crossed 4,000 for the first time since 2017.
Sales of new apartments have also levelled off. Bratislava recorded 652 new-apartment sales in the second quarter, down 12% from the previous quarter and broadly comparable with the 645 units sold in the same period last year.
Bratislava remains the most expensive market
Regional differences remain significant, with the Bratislava region recording the country's highest average asking price at €3,882 per square metre in the second quarter of 2026. The Košice region followed at €2,796 per square metre, while the Prešov region recorded €2,310.
Apartments are driving much of the price growth. Their average asking price reached €3,430 per square metre nationally, up 10.2% year-on-year. Houses recorded a more modest increase of 3.1%, with average asking prices at €2,163 per square metre.
Affordability remains a major concern. The 2026 Deloitte Property Index placed Košice, Bratislava and Banská Bystrica among Europe's ten least affordable cities. A new 70-square-metre apartment costs the equivalent of 15 years of gross annual salaries in Košice, 13.7 years in Bratislava and 13.4 years in Banská Bystrica.
Rising mortgage rates add to buyer pressure
Borrowing costs have started rising again following interest-rate increases by the European Central Bank (ECB). Slovakia's average interest rate on new housing loans reached 3.73% in August 2026, compared with 3.57% a year earlier and a low of 3.36% in March.
New mortgage lending for house purchases totalled €15.69 billion between January and August 2026, including renegotiated loans, up 4.9% year-on-year. However, monthly lending volumes, including renegotiations, declined by 41% between March and August as interest rates increased.
The NBS has also approved tighter mortgage rules for certain buyers. From July 2027, loans for purchasing a third or subsequent residential property will be capped at 70% of the property's value, while the general loan-to-value limit will remain at 80%.
Rental yields decline as prices outpace rents
The rental market is also showing signs of pressure. Average asking rents for apartments across Slovakia stood at €727 per month in the second quarter of 2026, unchanged from a year earlier. In Bratislava, rents averaged €931 per month, up 4.6% year-on-year.
Gross rental yields fell to 4.49% in the second quarter, from 4.88% in June 2025, as property prices increased faster than rents. Bratislava recorded an average yield of 3.85%, while Nitra offered the highest average yield among the cities surveyed, at 5.26%.
With construction activity weakening, financing costs rising and housing affordability remaining strained, Slovakia's residential property market faces the challenge of balancing demand, supply and purchasing power. While limited new housing continues to support prices, higher borrowing costs and slower sales could constrain further growth, particularly in Bratislava's new-build segment.
