Short-term Rental Opportunities in Eastern Europe

There is an undiscovered niche in Bratislava's real estate market...

Monday, April 21, 2008
Bratislava, Slovakia

Learn more about Eastern Europe in International Living Postcards—your daily escape

“Dobry den.” (Good morning.) “Hovorite po anglicky?” (Do you speak English?)

As I mentioned last week, I’m in Bratislava, Slovakia’s capital , and searching for real estate bargains. There are many real estate agencies here, but the trick is finding somebody who speaks English. It’s surprising how many don’t.

I eventually found a real estate agency, where a staff member, Adriana Laukova, spoke perfect English.

Even though one owner is Canadian, the agency doesn’t specifically market to Canadians, though some North American visitors call in out of curiosity. Like elsewhere in “the New Europe,” most foreign buyers are British and Irish. They generally purchase for investment, not lifestyle.

Yet, if you don’t mind cold winters, I think Bratislava would be a fascinating choice for a second home. On the banks of the Danube, it has everything: culture and entertainment, green spaces, great shopping, excellent transport systems, and very affordable living costs.

But great news for potential investors: short-term rentals are in high demand over here. My rental apartment is in an unattractive building south of Spitalska—an area on the edge of the Old Town. (The city’s historic core lies to the north.) I’m not renting it by choice—better short-term options had already been snapped up. As it’s not yet high season, this indicates how deficient of short-term rentals the city is.

Most foreigners buy in Bratislava’s Staré Mesto (Old Town), where prices averaged 15% per annum gains over the past three years. This is Bratislava District 1. Most agencies call the district Staré Mesto, but not all edifices are historic beauties on cobbled squares.

Adriana says it’s difficult to find anything in the Staré Mesto for less than $3,000 per square meter. Most restored apartments are $3,750 to $5,000 per square meter. That’s still way below Prague’s sought-after historic District 1, where the range is $6,000 to $10,350.

North of Spitalska, Adriana has some restored apartments that are only a five-minute walk from the Old Town Hall in one direction, and even closer to one of the main nightlife streets. One at 70 square meters is $266,000, a 121-square-meter apartment is $384,000, and one smaller 39-square-meter apartment on Moskovska is $140,000.

In the Staré Mesto’s heart, a 57-square-meter apartment on a pedestrianized street is $341,000. That’s almost $6,000 per square meter. But there aren’t too many streets where you’ll walk out to see a silver portcullis above you. It marks the spot where the old city gate once stood.

Steenie Harvey
Roving Europe Editor, International Living

Editor’s note: Watch out for Steenie’s upcoming articles in International Living magazine, where she shares insider information on the best real estate deals she finds on her travels. Subscribe to International Living magazine now.

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