Industrial
The weaker performance in the first half of the year was offset by a robust second half, with Q4 as the strongest quarter of the year, signalling a market recovery. While clients are cost-sensitive and rental prices are still an important criterion, ESG factors are gaining attention. The industrial segment's attractiveness was reflected in several investment transactions during 2024, and a decline in prime yields.
Office
With no new office buildings delivered to the market in Q4 and strong demand, the vacancy rate dropped for the fourth consecutive quarter. The majority of Q4 demand was directed toward A and A+ class buildings (82%) reflecting corporate tenants' growing preference for modern, energy-efficient office spaces, particularly in central locations (CBD). Therefore, prime rents for premium premises in CBD location increased to €19.50/sqm.
Retail
Extension of Aupark marks the end of current development cycle for shopping centers. On the other hand, retail parks continued to grow as anticipated with four new retail parks delivered to market in Q4. 2024 also stood out in terms of retail brand market entries with over 15 international brands opening their stores in Slovakia, including Ochnik, Hebe, Dnipro M, DIVR, MG Motor, Aida, and EL&N, underlining Slovakia's growing appeal. Additional foreign brands are anticipated to enter the market in 2025.
Residential
The Bratislava new-build market experienced its strongest quarter since the pandemic. According to BuiltMind’s analysis, 821 residential units were sold in Q4 2024, nearly three times the volume of the same period in 2023. This boom was driven by declining interest rates and the anticipated VAT increase from January 2025. The highest demand was for smaller apartments (1+kk and 2+kk layouts), indicating a strong investor appetite. Slovakia has long ranked among the least affordable housing markets due to a high share of premium properties relative to average wages. As a result, we expect faster demand recovery in peripheral areas with lower price levels.
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