Media appearances
South China Morning Post
Article on Slovenia Real Estate
Written by Peta Tomlinson
June 2010 – Slovenia
It’s billed as one of the 10 best skiing destinations in Europe – but it’s not France or Switzerland. You can still buy a medieval castle there, or as Heather Mills did, a country retreat. Over a third of the country is protected
As countries go Slovenia might be pocket-sized – but it certainly packs a punch. A tiny territory of just over 20,000 sq km, the former Yugoslav republic is the place where the Alps meet the Mediterranean. Like Hong Kong, it’s a small territory of many wonders. Also like Hong Kong, over one-third of its landscape is protected.
Slovenia was once called the “best kept secret of Central Europe”, but the secret was out when UK property program A Place in the Sun rated Slovenia in its top 20 places to make money in property. Since then, interest has piqued, say Justin Young and Jade van Baaren, Londoners who moved to Ljubljana, the nation’s capital, to set up Slovenia Estates the first English-run licensed agency in Slovenia.
Their typical clientele are expats who fall in love with Slovenia while on holiday, and decide to buy a holiday home. While demand slowed during the financial crisis, interest is again returning, especially for luxury developments that started pre-recession and have now reached completion.
According to luxury property agent Eva Jakopin, of Elite Property Slovenia, diversity is the main attraction.
“It’s possible to have a property on the coast and yet be in the mountains skiing two hours later. And Slovenia’s location in the heart of Europe means it is close to other attractive destinations such as Italy, Croatia, Austria and Hungary.”
Justin Young agrees. “From your home or office in Ljubljana, you can cross the border to have lunch in Italy. Its location is unbeatable. As a country bordered by Austria, Hungary, Italy and Croatia, Slovenia is within in one hour of Trieste, one hour of the Croatian coast, and two and a half hours of Venice. As a hub, it is also a trading centre for those countries.”
Slovenia is not just a pretty face. According to the latest Knight Frank Global House Price Index, the best place to be for property investment growth last year was Hong Kong (up 27.6 per cent), mainland China (up 25.1 per cent), Israel (up 21.3 per cent), or Australia (up 13.6 per cent). Although Slovenia is ranked 40 in a list of 47, it’s worth remembering that only the top 19 countries recorded positive growth in 2009. Slovenia, at -15.7 per cent, still fared comparatively well compared to some other Central European countries. The Knight Frank report puts Bulgaria, ranked 42nd, at -26.3 per cent; Ukraine, 44th, -35.7 per cent; Estonia, 45th, -40.3 per cent; and Latvia, 47th, -49.8 per cent.
Justin Young believes that a few over-inflated areas have dragged Slovenia’s average down, while in the “old town” part of the capital Ljubljana, where demand routinely exceeds supply, values have held steady. The Knight Frank report also predicts that 2010 could mark the beginning of recovery for those countries where prices were still falling last year.
Many buyers of property in Slovenia, particularly at the luxury end, are from overseas – most notably, the UK, Russia, Holland and Italy. Both Elite Property Slovenia and Slovenia Estates report “little or no interest” from Hong Kong or Chinese investors, although Justin Young believes the country should be on their radar.
Out of all the ex-Communist Eastern Bloc countries, Slovenia is by far the most stable, and has been since 1991, he reasons. Slovenia “was the first country to declare independence, and didn’t fight a bloody war to do it.”
“It changed to a market economy in 1991, and by the time other countries had finished their squabbles, Slovenia was already productive, with a stable economy and politics.”
Slovenia is also synonymous with quality. For a country of only 2 million people it has produced some fairly impressive brands, among them Elan (skiwear and yachts), Gorenje (high quality white goods), and Seaway (high-end carbon fibre yachts).
That reputation for quality extends to the built environment, too. While not as expensive as France or the UK, Slovenia is not the cheapest place to invest. Young calls it “affordable”.
“If you want cheap, go to Hungary or Bulgaria,” he says. “Slovenia builds a quality product, and that is another attraction for investors. And the country’s infrastructure is fantastic. We have first class highways criss-crossing the country – unlike Hungary and Poland where the roads are awful – and this puts Slovenia above the others.”
It’s also relatively easy for foreigners to buy property in Slovenia. There is “definitely a bureaucracy”, but that works in the buyer’s favour, Young says.
“You don’t have the legal risks where ownership may be called into question. Even for non-European citizens buying in Slovenia is very easy. You need to set up a company – which we do for a lot of customers. Apart from that, there are no restrictions.”