Ljubljana, 02 October (STA) - Property prices continued to decline in the first half of the year, but the falling prices perked up the market as demand remained surprisingly robust despite the weak economy, according to a report by the Surveying and Mapping Authority.
Prices of second-hand apartments dropped 3.7% year-on-year and houses were 4.8% cheaper. Prices of offices (-2.3%), building land (-4%) and farmland (-0.3%) also declined on average, while forests were 1.3% more expensive.
Demand on the secondary market was strong, with the number of transactions only slightly below the pre-crisis level. However, demand for new homes declined as banks tightened crediting conditions.
Prices of used apartments, the largest segment of the real estate market, averaged 1,670 euros per m2, down 5% year-on-year, but they ranged from EUR 2,410 on the coast and in Ljubljana to EUR 1,220 in Celje and EUR 1,010 in Murska Sobota.
The prices are at their lowest level since 2009 in all major cities bar Kranj and Koper.