The Lettings Market: Slovenia
Author Leaonne Hall is an expert on the overseas property market and has written extensively for a number of newsstand titles. She previously produced three editions of the Red Guide to Buying Property in Eastern Europe, and has been writing in detail on the individual markets since 2003.
THE LETTINGS MARKET
Rental yields in Slovenia average 6.81% per annum, with rental yields for properties in central Ljubljana ranging from 4.8% to 7%, with income of around €600 per month. In Ljubljana’s suburbs, rental yields are a bit higher at 5.85% to 7.5%, while property prices are much lower at €1,500 to €1,650 per square metre. Currently, few people invest in holiday properties in Ljubljana, but there is good long-term rental potential among workers, especially foreign executives, who represent the bulk of the market.
Average rents have been put at €1,400 in built-up areas, dropping to €1,000 elsewhere. Given that this is still a relatively immature, undiscovered and under-supplied country, and with tourism set to increase, you can expect to see an upturn in the number of rentals and income generated over the next decade.
RENOVATING A PROPERTY
If you decide you are going to renovate a property in Slovenia, you won’t be short of options. While historic city centre apartments may well be worth the renovation costs and all the effort, in rural areas you will find little demand for such homes; these would be more a labour of love.
Generally speaking, fittings in Slovenia are of a comparable cost to the UK, but labour – such as carpenters and electricians – is relatively cheap. As with any renovation project, it won’t be easy and it is worth doing significant amounts of research into the average costs and timing prior to taking one on.
