The Slovak government plans to increase the basic VAT rate from 20% to 23%, which may significantly impact the real estate market. This change should come into effect in 2024 as part of consolidation measures.
How Will the VAT Increase Affect Property Prices?
1. New Buildings and Developments
- Higher construction costs
- Possible price increase for new apartments and houses
- Impact on development projects
2. Property Rentals
- Potential increase in rental prices
- Impact on housing-related services
- Effect on short-term rentals
3. Secondary Real Estate Market
- Possible slowdown in older property sales
- Impact on renovation costs
- Effect on real estate services
Expected Market Consequences
- Increase in overall housing costs
- Possible slowdown in the real estate market
- Greater interest in older properties
- Pressure to optimize construction costs
Recommendations for Buyers and Investors
1. Consider the timing of property purchase
2. Compare costs before and after VAT increase
3. Reassess investment strategies
4. Consult with experts about possible solutions
Conclusion
The VAT increase represents a significant factor that may affect the entire real estate sector. It's important for market participants to prepare for this change and consider its potential impacts on their plans and investments.
