Commercial property price indices, 1st quarter 2024
Commercial real estate prices much higher
In the first quarter of this year, commercial real estate prices grew sharply, i.e. by 11.5%. After the fall in the last quarter of 2023, the prices of offices as well as retail and service premises increased in this quarter. The number of sales, however, fell sharply and was the lowest since 2015.
Strong growth of commercial real estate prices at the quarterly level …
Compared to the previous quarter, the prices of commercial real estate, i.e. retail premises and offices together, were higher by 11.5%. The increase in the price of retail and service premises (by 13.5%) as well as offices (by 10.0%) contributed to the overall price increase. The fall in the prices of both types of commercial real estate in the previous quarter (they went down by 4.2%) was followed by a higher growth in this quarter.
Despite quarterly price fluctuations, the gradual upward trend in commercial real estate prices, which has been ongoing since mid-2020, continues. The growth in the prices of retail and service premises has so far lagged behind the growth in office prices, but with recent price increases, the gap has decreased considerably. In the observed quarter, office prices were 55.2% higher than in 2015, and the prices of retail and service premises were 47.6% higher.
The quarterly number of commercial properties sold (139) was the lowest since 2015, and the total value of all properties sold in this quarter was the lowest ever, despite their higher prices. The number of commercial properties sold was gradually decreasing already in 2022 and 2023, but the decline in the last quarter (by almost a quarter compared to the previous quarter) was particularly large. So we are witnessing the usual market mechanism, when the rise in commercial real estate prices reduces the interest of buyers in them, and the result is a decrease in sales.
… as well as at the annual level
Commercial real estate prices grew for the eleventh consecutive quarter on an annual basis (by 16.2%), this time mainly due to the growth in the prices of retail and service premises (they went up by 28.4%), while office prices were higher by 5.1%.
Tables with the latest data are available in the SiStat Database.
Compared to the previous quarter, the prices of commercial real estate, i.e. retail premises and offices together, were higher by 11.5%. The increase in the price of retail and service premises (by 13.5%) as well as offices (by 10.0%) contributed to the overall price increase. The fall in the prices of both types of commercial real estate in the previous quarter (they went down by 4.2%) was followed by a higher growth in this quarter.
Despite quarterly price fluctuations, the gradual upward trend in commercial real estate prices, which has been ongoing since mid-2020, continues. The growth in the prices of retail and service premises has so far lagged behind the growth in office prices, but with recent price increases, the gap has decreased considerably. In the observed quarter, office prices were 55.2% higher than in 2015, and the prices of retail and service premises were 47.6% higher.
The quarterly number of commercial properties sold (139) was the lowest since 2015, and the total value of all properties sold in this quarter was the lowest ever, despite their higher prices. The number of commercial properties sold was gradually decreasing already in 2022 and 2023, but the decline in the last quarter (by almost a quarter compared to the previous quarter) was particularly large. So we are witnessing the usual market mechanism, when the rise in commercial real estate prices reduces the interest of buyers in them, and the result is a decrease in sales.
… as well as at the annual level
Commercial real estate prices grew for the eleventh consecutive quarter on an annual basis (by 16.2%), this time mainly due to the growth in the prices of retail and service premises (they went up by 28.4%), while office prices were higher by 5.1%.
Tables with the latest data are available in the SiStat Database.
Growth rates of commercial real estate prices, Slovenia
Trends in commercial real estate prices, Slovenia
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METHODOLOGICAL NOTE
In the 1st quarter of 2024, as in previous years, we changed the weights for the aggregate index, which is based on the average value of transactions of retail premises and offices from the previous two years.
Additional explanations are available in the methodological explanations.
Additional explanations are available in the methodological explanations.
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.
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