VUB's Market Share and Financial Services
HOUSING AFFORDABILITY STILL REMAINS
REASONABLE
Property price to income ratio
(1Q 05=100)
→ Market is driven by mortgages for real homes,
speculative demand is rather marginal when
compared to boom/bust a decade ago. Home
ownership is high at 90% (EU average is 75%)
Price to income ratio is still reasonable and
broadly stable in recent years
Factoring in declining mortgage rates, housing
affordability hovers near all time best
140
130
120
110
100
90
7.0%
Rates on new housing loans
(% p.a., APR)
6.0%
Slovakia
5.0%
Eurozone
4.0%
3.0%
2.0%
Difference
1.0%
0.0%
-1.0%
1-2009
1-2010
1-2011
1-2012
1-2013
Source: NBS, Slovak Stats Office
1-2014
1-2015
1-2016
1-2017
1-2018
1-2019
-20
-10
10
20
80
Long-term average
тү
1Q05 3Q06 1Q08 3Q09 1Q11 3Q12 1Q14 3Q15 1Q17 3Q18
Housing Affordability Index
(% vs historic average, by regions)
"overvalued"
0
1Q10
1011
1012
1013
1Q14
1015
1016
1Q17
1Q18
"undervalued"
-30
-40
BL --TA
―TC
―NI -ZI
<-BC <-PV -KI -SR
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