Commercial property price indices, 2nd quarter 2024
Commercial real estate slightly higher
In 2nd quarter, commercial real estate prices grew by 1.5%. After a significant increase in 1st quarter, only the prices of retail and service premises grew slightly, while office prices fell. The number of sales, which had already dropped in 1st quarter, remained at the lowest level since 2015.
Modest growth in commercial real estate prices at the quarterly level ...
Compared to the previous quarter, the prices of commercial real estate, i.e. offices and retail premises together, increased in the 2nd quarter of 2024 by 1.5%. Only higher prices of retail and service premises (by 3.7%) contributed to the overall price increase. This rise is unexpected, as the prices of retail and service premises already grew sharply in the previous quarter (by 13.3%). Namely, commercial real estate price indices usually alternate; rising prices are followed by falling prices. This happened with offices, the prices of which grew by 10.0% in the previous quarter, but this time they fell by 1.6%.
In the observed quarter, too, despite the quarterly variations in the prices of commercial real estate, the trend of their gradual growth, which lasted since mid-2020, continued. The growth in the prices of retail and service premises has so far lagged behind the growth in office prices, but with the recent price increase, the lag has completely disappeared. In the observed quarter, office prices were 52.7% higher than in 2015, and the prices of retail and service premises 53.0% higher.
The quarterly number of commercial properties sold (133) was the lowest since 2015, and the total value of properties sold in the 2nd quarter (EUR 18.9 million) was also the lowest ever. The mentioned number of commercial properties sold gradually decreased already in 2022 and 2023, and finally in the first quarter of 2024 (by a quarter compared to the previous one) the drop was particularly large. In the last quarter, the market's liquidity was maintained at this achieved level. The decline in the number of offices sold was somewhat larger, which is the result of either a lack of vacant offices of adequate quality on the market, or higher prices, which deter buyers in the face of growing economic uncertainty.
… and still strong growth year-on-year
At the annual level, the prices of commercial real estate went up for the thirteenth consecutive quarter (by 16.2%), this time mainly due to the increase in the prices of retail and service premises (by 25.6%), while the prices of offices were higher by 6.8%.
Tables with the latest data are available in the SiStat Database.
Compared to the previous quarter, the prices of commercial real estate, i.e. offices and retail premises together, increased in the 2nd quarter of 2024 by 1.5%. Only higher prices of retail and service premises (by 3.7%) contributed to the overall price increase. This rise is unexpected, as the prices of retail and service premises already grew sharply in the previous quarter (by 13.3%). Namely, commercial real estate price indices usually alternate; rising prices are followed by falling prices. This happened with offices, the prices of which grew by 10.0% in the previous quarter, but this time they fell by 1.6%.
In the observed quarter, too, despite the quarterly variations in the prices of commercial real estate, the trend of their gradual growth, which lasted since mid-2020, continued. The growth in the prices of retail and service premises has so far lagged behind the growth in office prices, but with the recent price increase, the lag has completely disappeared. In the observed quarter, office prices were 52.7% higher than in 2015, and the prices of retail and service premises 53.0% higher.
The quarterly number of commercial properties sold (133) was the lowest since 2015, and the total value of properties sold in the 2nd quarter (EUR 18.9 million) was also the lowest ever. The mentioned number of commercial properties sold gradually decreased already in 2022 and 2023, and finally in the first quarter of 2024 (by a quarter compared to the previous one) the drop was particularly large. In the last quarter, the market's liquidity was maintained at this achieved level. The decline in the number of offices sold was somewhat larger, which is the result of either a lack of vacant offices of adequate quality on the market, or higher prices, which deter buyers in the face of growing economic uncertainty.
… and still strong growth year-on-year
At the annual level, the prices of commercial real estate went up for the thirteenth consecutive quarter (by 16.2%), this time mainly due to the increase in the prices of retail and service premises (by 25.6%), while the prices of offices were higher by 6.8%.
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
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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