A Channel 4 study predicts property in Slovenia will grow 278% by 2015

The last few years have seen strong growth in prices for property in Slovenia as a result of a government scheme to incentivise property purchase by young Slovenians and also thanks to the liberalisation of foreign property ownership on entry to the EU.

However, foreign investment in property in Slovenia has so far been more of a trickle than a flood (purchases by foreigners number in the hundreds rather than thousands) and there are still bargains to be had all around the country – from the capital Ljubljana, to the delightful rural backwaters of Dolenjska and Štajerska.

Ljubljana has been at the forefront of recent growth, originally just in the central areas of the city, but now also in the suburbs and satellite towns. Recently, Primorska (the coastal region) has also seen strong growth in prices and alongside Gorenjska remains the second most expensive area of the country to buy in. Many speculators believe that, generally speaking, growth will continue until the end of the decade, levelling out in the years following Slovenia’s predicted adoption of the Euro.

The rental market is well established in Ljubljana, around the main tourist centres and increasingly in locations near to destination airports of budget airlines. Elsewhere, the market for property in Slovenia is still relatively immature, but growing, especially in the main towns and cities. Slovenia has something to suit buyers of all types – from people looking for a second home in the sun to professionals making investment decisions on behalf of financial institutions. Most foreigners buying property in Slovenia choose one of three options:

Ljubljana Slovenia’s capital is a thriving city with a charming historical centre and with new shops, bars, restaurants and cafés springing up it has an increasingly cosmopolitan feel. At the crossroads of Italian and Germanic cultures and at the head of the Balkans, Ljubljana is likely to continue to grow in stature as a cultural, political and business centre for many years to come. Although the most developed and expensive market for property in Slovenia, it is still a good bet for strong capital growth and high rental returns in the future.

Rural retreats In Slovenia there are a good deal of well constructed houses available in villages and deeper into the countryside. Most are built in the traditional Slovenian style, often relatively recently, meaning little work is required. There are also opportunities for renovation and rebuild projects of older properties. Being located close to one of the many airports to which budget airlines fly in the region is an important consideration for those wanting to rent their property in Slovenia to other holiday makers.

The coastal and mountain tourist hubs There a number of established tourist destinations around Slovenia, including Bled and Kranjska Gora in the mountains and Piran on the coast. These towns are a very good option for those looking for a holiday property in Slovenia that is in beautiful surroundings and that can generate a healthy return on investment. All the more since many of the main coastal and mountain tourist hubs have recently seen an influx of foreign investment resulting in improved infrastructure.