At the Real Estate Forum, we actively participated in discussions about rental housing, with our Managing Director, Peter Kysela, openly addressing challenges and visions in this sector. This segment of real estate development holds enormous potential. While the European average for rental housing accounts for 32%, in Slovakia, it is only 6%.
Today’s younger generation prefers greater flexibility, but the issue of housing affordability is becoming increasingly prominent. With property prices rising faster than real wages, homeownership is becoming unattainable for many. Rental housing offers a viable solution to this challenge.
However, to kickstart its development, stronger state support and more accessible financing are necessary. Banks often require an “exit” strategy even before construction begins, ideally through funds or strong rental housing operators. A critical factor in accelerating construction remains the need for faster permitting processes. Prolonged capital financing significantly increases housing costs, reducing affordability.
Another panel focused on workspaces and “workplace” strategies. Participants discussed what tenants truly value when returning to offices, with topics such as ESG and achieving carbon neutrality taking center stage. A case study of an optimal workspace solution was presented to inspire attendees.
The conference concluded with a focus on the new building legislation coming into effect on April 1, 2025. Everyone is curious about what the new construction law will bring. One promising aspect is the introduction of a streamlined process, called the “Construction Plan Procedure.” After obtaining this decision, the next stage of project documentation will be verified. The concept of “presumed consent” also sounds promising—if an authority does not respond within 30 days, consent will be assumed.
However, certain issues in the law will likely require future amendments, such as the absence of “modifications to a building before completion,” which almost every project encounters during construction. For now, the new building law raises more questions than answers, suggesting a significant leap into the unknown starting in April.
The conference brought a wealth of stimulating ideas and discussions that will undoubtedly contribute to the further development of our projects and the real estate market in Slovakia.