With its growing tourism industry, developing real estate market and governmental stability and increasing political prominence, Slovenia is worthy of consideration, so there are following 10 reasons as strong factors driving investor confidence in Slovenia’s property market:
1) Slovenia’s Stable European Union Status Inspires Property Investor Confidence
Slovenia has been a member of the European Union since 2004. The country worked incredibly hard to gain European confidence and was heavily supported by the UK in its bid for EU entry. Since its acceptance, tiny Slovenia has become a major player in the Union, showing its dedication to and concern for the whole of Europe. Slovenia’s strong support of the EU and its acceptance of all EU principles and objectives is very good for property investors who want to know their real estate purchases take place in a country that is not closed off from the world. Slovenia is one former communist country that has made incredible strides in embracing and connecting with the world around it.
2) Slovenia’s Government is Becoming a Major Player in World Relations, Giving Prestige to the Country and Boosting Property Investors’ Faith
Although Slovenia’s democratic government is relatively new, its stability and drive to succeed is phenomenal. The first democratic elections only took place in 1991, but since then Slovenia has really impressed the worldwide community. The country has been very active in the UN, humanitarian efforts, military-stabilising and economic and cultural projects in the world community. It even chaired the Organisation for Security and Cooperation in Europe in 2005. Evidence of the country’s fast-rising star is seen in its impending EU presidency in 2008. Property investors who want to know their country of investment choice is respected and recognised by the worldwide community are very pleased with Slovenia’s incredible strides in such a short period of time.
3) Growing Economy Shows Great Promise for Property Investors in Slovenia
Slovenia is a very tiny country of only about 2 million people; despite this the country’s economy is on the rise impressively and sustainably. In 2006 the GDP was USD 47 billion and its annual growth rate is climbing by about 5.2 %. The country’s growing economy is fuelled by the automotive, steel, pharmaceutical and electronics industries and the nation is also becoming a tourist hotspot. The rising economy, its stability and growth are all good signs for investors who want a growing environment within which to buy property for investment purposes. The holiday rental market is also on the rise with investors often enjoying more than GBP 600 per week per property unit during peak travel seasons.
4) Slovenia’s Unique Location Makes it Very Attractive to Real Estate Investors
Property demand in Slovenia is on the rise in part due to its incredible location. The country is fast becoming a holiday hotspot because of its proximity to the Alps, the Adriatic, Italy, Austria, Hungary and Croatia. Holidaymakers find the country delivers a rather wide set of vacation options and this is fantastic news for investors serious about the buy-to-let market.
5) Diverse Geography Makes Slovenia Very Popular With International Property Investors
If ever there was an ideal location for holidaymakers with a desire for diversity, the little country of Slovenia would be it. Truly a crossroads, the country is a meeting point for four European geographic regions – the Alps, the Dinaric area, the Pannonian Plain and the Adriatic. Although the country features a fair amount of beautiful Adriatic coastline, it is famous for its mountains and skiing as much as its seaside property. The country’s unique draws are growing the tourism industry and giving credence to a buy-to-let investment strategy. Its geographical diversity also gives rise to a continental climate in most of the country and a Mediterranean climate in the southern, waterfront areas. The diverse geography makes Slovenia an ideal destination for holidaymakers and expatriates with many different landscape and climate tastes and it makes it ideal for property investors seeking diversity and choice of investment approaches and assets.
6) Growing Travel Industry in Slovenia is an Excellent Base for a Property Investment Strategy
As Slovenia becomes more widely known to the world outside, its natural beauty, unique geography, unusual attractions and hospitality are drawing in an ever-growing number of tourists. According to the World Travel & Tourism Council, the country’s popularity among tourists is growing steadily, it is expected to generate EUR 1,355.8 billion in travel and tourism dollars in 2007 alone. It is expected to grow its tourism industry by 3.9% per annum between 2008 and 2017 as well, and the anticipated upward climb in Slovenia’s popularity among holidaymakers presents a number of solid opportunities for property investors. From its cities and ski resorts to its seaside areas, Slovenia property investment for holiday letting is a popular prospect, giving buyers here confidence in their purchases. From Piran’s Venetian architecture to the famous Ljubljana Cathedral built in 1708, the country also has its share of attractions for holidaymakers to see and its fair share of locations for real estate investors to target.
7) Adopted Euro Currency Makes Slovenia Property Investment Easier
Whilst some buyers still will need to deal with an exchange of currency, the Euro-based system in Slovenia makes investment very simplistic for many Europeans. Beyond the ease of transaction and the transparency of pricing, the Euro tends to inspire confidence on its own, since the currency comes with the backing of so many major European powers.
8) Housing Shortage Makes Real Estate Investments in Slovenia Very Timely
As Slovenia experiences population growth from incoming expatriates, an increase in tourism and a rise in the underlying wealth of local professional classes as well, so demand in the housing market in Slovenia is very much on the increase. Shortages of housing are a problem, but new construction is ongoing in many areas. UK’s Channel 4 reports that Slovenia is “rapidly becoming a choice place for discriminating Europeans to buy.” As the country’s popularity rises, it is likely those who get in early will experience rather nice returns on their investment properties. The population growth is modest, but quite present and according to Slovenia Invest, the country is experiencing a healthy net migration growth rate. In 2005 for example, just over 6,000 more people moved into Slovenia from foreign locales than moved out and this is a trend that is expanding creating significant demand for rental and resale stock that an investor can tap into.
9) Ease of Accessibility Gives Investors Confidence in Slovenia’s Property Market
Slovenia is readily accessible from other countries such as Italy and Croatia by means of travel other than plane. For those coming from the UK and other further-away locations, new budget airline routes are making travel into Slovenia simplistic and affordable. Getting to or leaving Slovenia is not a challenge for Europeans at all in fact and this makes the country quite attractive for holidaymakers, business persons and naturally property investors too!
10) Straightforward Property Buying Process Makes Slovenia Attractive
Buying property in Slovenia used to be a rather cumbersome process that required government approval. With the country’s acceptance into the EU came a streamlining of the process. EU citizens are now free to buy real estate in Slovenia with very little government red tape. This makes buying property in Slovenia attractive, especially for those who are uncomfortable with the restrictions placed on foreign investment in other Easter European locations.
Slovenia might be a small country with regard to its size and population, but savvy investors are not letting the geographic restrictions of the nation restrict them. This country’s prominence as a stable worldwide player is on the rise as are its real estate and tourism industries.
posted by C Mahida on August 28, 2007
Aljaž Čerček Real Estate Broker for
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