Bratislava Best for Buy-to-Let
When it comes to sound buy-to-let investments, Bratislava - Slovakia's capital city - is a winner all the way. Recently ranked by Knight Frank as "the place to go for rental property", Bratislava property investment is currently one of Central Europe's letting hot spots.
Slovakia as a whole has a high percentage of homeowners with a comparatively smaller rental market, but Bratislava with its ever growing number of ex-pat workers, diplomatic staff and student population is quite the opposite.
With the lowest wages in the EU, Bratislava is a favourite destination for foreign direct investment and the city, already home to many multinational companies, saw 10,000 new jobs created in 2007 with the consequent rise in demand for rental accommodation. According to James Gonzalez, Market Analyst at Obelisk, “Due to the high level of education, international companies are setting up in Bratislava to take advantage of the educated workforce, which is inevitably increasing the spending power for the local population.”
The city's large student population, popularity as a short break destination, thanks to the introduction of budget flights in 2004, its attractive medieval Old Town and its enviable position on the River Danube also means there is plenty of buy-to-let potential.
“Property investment in Bratislava is proving to be an extremely profitable option for property investors following a longer-term buy-to-let approach. Central 22, launched at the beginning of the year, was aimed at exactly this type of investor looking to maximise rental yield earnings and capital appreciation.” comments James Gonzalez of Obelisk.
Further demand for homes comes from the many Viennese workers who live in Bratislava and commute across the border to Vienna. Bratislava's close proximity to the Austrian capital - a mere 30 minutes' drive – the short supply of good quality apartments and attractive property prices (around 75% cheaper than Viennese homes) mean apartments in Bratislava’s city centre have seen price hikes of 15% per year. Rental yields are also high and average between 8% and 10% for apartments in the city centre.
The National Bank of Slovakia has recorded price rises of 21.3% year-on-year since 2002 and the country's rapid economic growth is another factor affecting rising house prices. Slovakia's GDP growth rate in 2007 was an impressive 10.4%, a massive increase on the 6% it had achieved annually between 2002 and 2006. The country received a further boost when it was announced that it had successfully met all the economic targets to adopt the euro. The EU Commissioner for Economic and Monetary Affairs, Joaquín Almunia, said "Slovakia has achieved a high degree of sustainable economic convergence and is ready to adopt the euro on 1 January 2009."
With strong and steady demand for rental accommodation, high rental yields, low taxation on rental income and a flat rate income tax, Bratislava really is the place to go for property investment.
About Obelisk
Obelisk's extensive research and analysis, whether through an Obelisk own development or via a developer partner, determines exactly where to build, what to build and when to build, from concept through to completion, making Obelisk unique within the overseas property investment market. Obelisk's market leading, robust selection process ensures only the best financially secure property investments, safeguarding the future of investor clients. All projects undertake compulsory due diligence ensuring clients are provided with complete peace of mind.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Slovakia as a whole has a high percentage of homeowners with a comparatively smaller rental market, but Bratislava with its ever growing number of ex-pat workers, diplomatic staff and student population is quite the opposite.
With the lowest wages in the EU, Bratislava is a favourite destination for foreign direct investment and the city, already home to many multinational companies, saw 10,000 new jobs created in 2007 with the consequent rise in demand for rental accommodation. According to James Gonzalez, Market Analyst at Obelisk, “Due to the high level of education, international companies are setting up in Bratislava to take advantage of the educated workforce, which is inevitably increasing the spending power for the local population.”
The city's large student population, popularity as a short break destination, thanks to the introduction of budget flights in 2004, its attractive medieval Old Town and its enviable position on the River Danube also means there is plenty of buy-to-let potential.
“Property investment in Bratislava is proving to be an extremely profitable option for property investors following a longer-term buy-to-let approach. Central 22, launched at the beginning of the year, was aimed at exactly this type of investor looking to maximise rental yield earnings and capital appreciation.” comments James Gonzalez of Obelisk.
Further demand for homes comes from the many Viennese workers who live in Bratislava and commute across the border to Vienna. Bratislava's close proximity to the Austrian capital - a mere 30 minutes' drive – the short supply of good quality apartments and attractive property prices (around 75% cheaper than Viennese homes) mean apartments in Bratislava’s city centre have seen price hikes of 15% per year. Rental yields are also high and average between 8% and 10% for apartments in the city centre.
The National Bank of Slovakia has recorded price rises of 21.3% year-on-year since 2002 and the country's rapid economic growth is another factor affecting rising house prices. Slovakia's GDP growth rate in 2007 was an impressive 10.4%, a massive increase on the 6% it had achieved annually between 2002 and 2006. The country received a further boost when it was announced that it had successfully met all the economic targets to adopt the euro. The EU Commissioner for Economic and Monetary Affairs, Joaquín Almunia, said "Slovakia has achieved a high degree of sustainable economic convergence and is ready to adopt the euro on 1 January 2009."
With strong and steady demand for rental accommodation, high rental yields, low taxation on rental income and a flat rate income tax, Bratislava really is the place to go for property investment.
About Obelisk
Obelisk's extensive research and analysis, whether through an Obelisk own development or via a developer partner, determines exactly where to build, what to build and when to build, from concept through to completion, making Obelisk unique within the overseas property investment market. Obelisk's market leading, robust selection process ensures only the best financially secure property investments, safeguarding the future of investor clients. All projects undertake compulsory due diligence ensuring clients are provided with complete peace of mind.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
posted by Alison Kane at 5:41 pm
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