Bratislava, The largest city and the Capital of Sloavkia, is a major center for industry and culture. It lies in the south-west close to the borders of Hungary and Austria and is among the warmest parts of Slovakia.

The rise of Slovakia and in particular it’s capital city Bratislava, as an important centre of economic, political and cultural life has been an impressive transformation.         
Population of Bratislava - 600,000 approx
Population of Slovakia - 5.4 million approx

The property sector is predicted to contribute 14.9% of GDP in 2007, with a total of
309,000 jobs in the sector equating to 13.1% of total employment. The Slovak
government aims to create favourable conditions for the development of the hotel/commercial industry, and the tourism sector as a whole, with the objective of increasing the sector’s contribution to the nation’s GDP.

Slovakia has attracted substantial inward investment since joining the European
Union. Multinationals keen to invest in the central European region are drawn
to Slovakia for its low labour costs, low taxation and political stability. Inward
foreign investment reached €2.2 billion in 2005, representing an astounding
100% increase on 2004’s figures. In 2006, the World Bank described Slovakia
as the fastest transforming business environment in the world, with comparisons
already being drawn to Ireland’s economic transformation in the 1990s.

The country has been one of the region’s strongest economic performers over the last few years, with the government focusing on prudent economic policies, and the adoption of the Euro in January 2009, firmly in its sights. This commitment to strong economic
management has secured investor confidence, and should see the country continue
to perform strongly.

The May 2001 economic program established by the Slovak
authorities in conjunction with the International Monetary Fund, projects GDP
growth to rise to 8.75% in 2007, and to level out at 7% by 2009. The Ministry of
Finance, meanwhile, is expecting economic expansion to outpace the assumptions
in the 2007–2009 budget framework, while investment is buoyed by foreign investment.

Potential For Capital Appreciation

Property prices in Bratislava have been rising steadily over the last few years. 2003 saw an average growth of 20% and prices are expected to continue climbing. Most economists predict a 15 - 20% annual growth in the next 3 - 5 years.
Rental Yields
Rental yields are higher than in many Central European countries, currently estimated at around 6-8%, and there remains a shortage of new build.
 
Key points to note:

• Stable economy: Healthy economy, member of the EU, Euro is expected to be adopted in 2009.
• Capital appreciation has been strong to date: Economists predict a 15-20% annual growth in the next 3-5 years.
• Attractive rental yields: Rental yields higher than many other central European countries and in some areas as high as 10%.
• Exceptional growth of tourism:  Tourist numbers grew by 48% in 2007
• Influx of foreign investment: Companies such as Volkswagon and Peugeot have opened operations. Foreign investment totalled about 3.2bn euros in 2006.
• Strong economy in the major Cities: High demand for new built city flats from local population keen on the new high standards.
• Good investment Climate: Rated as the top performer in improving it's investment climate in 2006 by the World Bank. No restrictions on citizens from EU member states purchasing property as non-nationals.
• Developing mortgage market: The mortgage market in Slovakia is rapidly developing, allowing more and more Slovaks to enter the residential market and also allowing non-nationals to borrow.
• Shortage of supply: Slovakia, and Bratislava in particular, has a massive shortage of housing stock. At 309 per 1,000 inhabitants, the number of dwellings in Slovakia falls well below the EU average of 450 dwellings per 1,000.

Summary comments:
Slovakia is currently undergoing a rapid transformation. The country has gained accession to the EU, membership of OCED and NATO.   It has also been receiving favourable reports from highly reputable organizations which include the World Bank’s “Doing Business 2006” which rated Slovakia as the world’s top performer in improving its investment climate over the past year. Rental yields in Bratislava are very attractive and in some areas are as high as 8%. There has been an influx of foreign investment including companies such as Volkswagen and Peugeot. There is a significantly high demand for apartments and commercial property in Bratislava.

Top Investment Locations

Banska Bystricia
The city of Banská Bystrica is located in central Slovakia. Banská Bystrica is the most important historical, cultural and economic centre of the central Slovakia. It is a seat of administration of the Banská Bystrica Region, one of the 8 regions of the Slovak Republic. The first written reference about the city is from the year 1255. Today Banská Bystrica has over 81,000 inhabitants.

Kosice
the metropolis of Eastern Slovakia, the second largest city after capital Bratislava . Lying in the valley of the River Hornad in the basin that shares its name, Kosice is a regional administrative centre and Eastern Slovakia's hub of industry, commerce, science and culture. The country's second largest city, Kosice curently has a population of more than 250,000 inhabitants. As the Regional Administrative Center for Kosice County, Kosice provides government services to an area encompassing 6 753 sq. kilometers and serves over 766 000 people.

Zilina
is a town with an interesting history, with cultural and educational traditions, great economical and financial potential and dynamic presence. In the city are branches of almost 20 banks, and the management of the First Communal Bank.  In Žilina their seat have also important building companies, among which dominates Váhostav j.s.c. - one of the largest in Slovakia.  Žilina ranks among the most important railway and motorway junctions in Slovakia.