Buying a property in Ljubljana: a complete guide

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Yes, the analysis of Ljubljana's property market is included in our pack

Wondering about investing in real estate in Ljubljana? You're not alone!

Many people are drawn to Ljubljana's charm and fantasize about owning a modern apartment or a traditional house in this city.

Is it worth investing there, though? Are property prices increasing in Ljubljana? How much does it cost? Is it more profitable to buy in the city center or Tabor? Are there any secret taxes? Can I get a very good rental yield? Where?

We've solved it for you.

The Investropa team has really dug into this market. Actually, we've gathered all our findings in a pack. Get it now.

In this article, we'll provide you with helpful information.

How's the real estate market in Ljubljana?

Is the property market going up or down? Let's look at fresh data and statistics.

Property types

In Ljubljana, you can find a variety of properties for sale to suit different preferences and needs.

These include apartments ranging from cozy studios to spacious multi-bedroom units, charming townhouses with unique architectural features, modern houses with gardens or yards, and even commercial properties like shops and offices in bustling areas.

Whether you're looking for a comfortable home, an investment opportunity, or a business space, Ljubljana offers a diverse range of properties for sale to explore.

Buying or renting?

(In case you want it for yourself, not for rental purposes)

If Ljubljana is your city of choice, the decision of buying or renting a property in this charming Slovenian capital awaits you.

Without a doubt, it's better to buy if you want to build long-term equity in an appreciating asset, while avoiding the costs and restrictions associated with renting.

To make a good decision, look at the property price-to-rent ratio. Use this metric to see how rental income can help you pay off the property over time.

According to Numbeo, the property price-to-rent ratio in Ljubljana is around 29.05, which is above the world average.

This value means that, on average, it would take you 29 years of paying rents to afford buying a property in Ljubljana. However, you don't want to rent for such a long time (you're not building equity). Better to buy then.

Property prices in Ljubljana

On average, according to the last data from Statistical Office of the Republic of Slovenia, purchasing a property in Ljubljana would cost you around $4,900 per square meter.

Obviously, there are significant differences. The value of a square meter for an apartment in Ljubljana city center might differ from a suburban house. We actually offer a more in-depth analysis in our pack for buying property in Ljubljana and in Slovenia.

To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 3 properties in Ljubljana.

Also, it's worth noting that housing prices in Ljubljana are cheaper (-39%) than in Vienna.

The most expensive neighbourhoods in Ljubljana are probably Šiška, Vič and Polje, while the cheapest ones are probably Moste, Šentvid and Črnuče.

Trends

First, let's acknowledge that Slovenia is, today, an extremely stable country. The last Fragile State Index that has been reported for this place is 27.7.

Keep this in mind when thinking about the viability of buying a property in Ljubljana.

Also, Slovenia's economy is expected to soar by 10.8% in the coming 5 years, resulting in an average GDP growth rate of 2.2% (source: IMF).

If you're about to invest in real estate in Ljubljana it's a good thing because, as the economy grows, people's incomes (usually) increase, motivating them to invest in real estate, which causes a rise in property demand and prices.

Also, in Slovenia, the average GDP per capita has changed by 11.0% over the last 5 years. It is far superior to the global average.

According to this data point, property prices in Ljubljana might go higher in 2024 and also later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Slovenia right now.

Buying property in Ljubljana

It can be difficult to buy property in Ljubljana due to the lack of reliable and updated information, making it the most difficult part of the buying process. That's why we have created the pack to buy property in Ljubljana and in Slovenia.

Buying process

In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.

Now, we're giving you a simplified version of the buying process.

This is the step-by-step process to purchase a property in Ljubljana:

1. Research Ljubljana's property market.
2. Find a licensed real estate agent familiar with local regulations.
3. View properties that meet your criteria.
4. Conduct thorough property inspections and evaluations.
5. Review "Vpis v ZK" - property's land registry entry.
6. Obtain a Slovenian tax number (Davčna številka).
7. Secure financing through a local bank or provide sufficient funds.
8. Make a written offer to the seller.
9. Negotiate terms and purchase price.
10. Sign a formal "Prodajna pogodba" - purchase agreement.
11. Transfer the purchase amount and cover real estate agent's fee.
12. Complete the property transfer at the "Zemljiška knjiga" - land registry office.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Slovenia.

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Where to find a property

Here is a list of websites where you can find properties in Ljubljana.

• Indomio - They provide a mobile-friendly platform to find properties in Slovenia, offering personalized searches and connecting with local agents.
• Slovenia Estates - They are a leading international licensed agency specializing in Slovenia real estate and luxury holiday rentals for over 17 years.
• Stan - They offer various real estate services, including sales, purchases, rentals, and property management.
• Move 2 Slovenia - They offer various real estate services, including sales, purchases, and legal advice related to real estate transactions.
• Think Slovenia - A real estate agency specializing in property services in Slovenia.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Slovenia.

Which properties for which budget?

As mentioned before, the average price per sqm in Ljubljana is $4,900. A 1-bedroom property with an area of 60 square meters would cost approximately $294,000, and a 2-bedroom with an area of 85 square meters would cost approximately $417,000.

However, the cost of properties will fluctuate depending on both their characteristics and their location.

Typically, prime neighborhoods in Ljubljana come with higher prices. A residence in the Center might be around $1,190,000, whereas an apartment in Bežigrad could be priced at $520,000.

On the other hand, certain areas are friendlier to your budget. You may find a residence in Šiška for $490,000, or a residence in Šentvid priced only at $310,000.

Find a more detailed price list in our full pack for buying property in Slovenia.

Common mistakes

Here are the main pitfalls when buying a property in Ljubljana, Slovenia:

• Foreign ownership restrictions: Check regulations for non-EU citizens and ensure eligibility to buy property.
• Land use restrictions: Be aware of specific zoning laws and restrictions on certain properties.
• Historical heritage properties: Extra approvals may be needed when purchasing historic buildings or properties near cultural sites.
• Earthquake risk: Ljubljana is in a seismically active area, so assess earthquake resistance and insurance requirements.
• Currency fluctuations: Non-Euro buyers should consider potential currency exchange risks during transactions.
• Decentralized sewage: Some properties might have septic systems, requiring maintenance and compliance with local regulations.
• Tourist rental restrictions: Verify limitations on short-term rentals to avoid legal issues.
• Traditional architecture: Be prepared for unique building styles that may require specialized maintenance and renovation expertise.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Slovenia Property Pack

Living in Ljubljana

Life in Ljubljana is vibrant and full of culture, making it an ideal place to buy property for those looking for a city with a unique charm.

Cost of living

The cost of living in Ljubljana is generally quite affordable. Prices for groceries, transportation, and housing are all lower than the European average.

Here are some examples to better understand the cost of living in Ljubljana:

• Rent for a one-bedroom apartment in the city center: €600-€900 per month.
• Monthly utilities (electricity, water, heating): €100-€150 for a standard 85m² apartment.
• Meal at a mid-range restaurant: €10-€15 per person.
• Public transportation (bus, tram): €1.20 per ride.
• Groceries for a week (milk, bread, eggs): €20-€30.
• Local beer (0.5L) at a pub: €3-€4.
• Fitness club membership: €25-€40 per month.
• Cinema ticket: €7-€9.

Neighbourhoods

We want to show information in an easy-to-understand way. So, we made a table that lists the different neighborhoods in Ljubljana. For yields, prices and rents, check our property pack.

Life in Ljubljana

Ljubljana is the economic capital of Slovenia and is home to a variety of industries, including manufacturing, finance, and technology. The city has a strong and diversified economy, which has seen steady growth in recent years, and is also a popular destination for foreign investment.

What expats usually like the most in Ljubljana is the city's relaxed atmosphere and vibrant cultural scene, with its many museums, galleries, and music venues. They also appreciate the city's natural beauty, with its picturesque rivers, mountains, and parks.

An important point to note is that Ljubljana is an extremely safe city - the crime index is around 22, which is an exceptional score. Ljubljana has a culture of respect for the law and a strong sense of community which helps to keep crime levels low.

A good point for a property investor - Ljubljana has a modern mass rapid transit system, consisting of a metro line and several bus lines.

Access to healthcare in Ljubljana is very good, with a Healthcare Index of 67. A good healthcare system will always benefit the real estate market of a place.

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Renting out in Ljubljana

This section is for you if your goal is to buy a property and rent it out to generate income.

Long-term

Tenant Profiles in Ljubljana

According to the data reported by Wikipedia, the home ownership rate in Slovenia is 76%, which is average.

It means that, if you decide to buy and rent out in Ljubljana, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, expats, and families. There is also a growing demand from tourists looking for short-term rentals.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Ljubljana are within the 3-4% range. It's low. A good rental yield is typically considered to be around 7% or higher (you might know it already).

Properties near the city centre tend to give the best rental yields in Ljubljana due to the high demand for short-term accommodation from tourists and business travelers. Additionally, properties located in areas with good public transport links are also popular with renters, providing a steady income for landlords.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Ljubljana are taxed at 15%, which is not much.

Short-term

You could also decide to rent short-term to tourists visiting the city, or to business travelers in need of accommodation during their stay in Ljubljana. Additionally, you could rent to students who are in the city for a semester or two.

If you decide to go with that option, look for properties in the city centre, close to the main attractions, such as Prešeren Square and Ljubljana Castle, as well as in the neighbourhoods of Tivoli, Šiška, and Šentvid.

Currently, there are approximately 1,965 active Airbnb listings in Ljubljana, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $109.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Ljubljana can make around $1700 per month. Also, the average occupancy rate is estimated at 74%.

Is it worth buying real estate in Ljubljana then?

Buying a property in Ljubljana is a smart move if you're in it for the long haul. The city offers affordable real estate compared to many European counterparts, and the stable economy with projected growth means your investment could appreciate over time.

Plus, the property price-to-rent ratio suggests that buying is a more cost-effective option than renting in the long run. So, if you want to secure your housing and potentially benefit from property value appreciation, Ljubljana is a great choice.

However, if you're looking for quick returns or don't have a substantial upfront budget, buying property in Ljubljana might not be ideal. Rental yields are relatively low, so if you're after high rental income, other cities or investment avenues might be more profitable.

Also, keep an eye on currency exchange risks if you're not dealing in Euros, and be aware of regulatory restrictions and property market uncertainties.

In a nutshell, Ljubljana is a fantastic option for long-term investors seeking stability, but it might not suit those looking for short-term gains or facing financial constraints. Research, financial planning, and understanding your investment goals are crucial before diving into Ljubljana's real estate market.

Make sure you understand the real estate market in Ljubljana

Don't rush into buying the wrong property in Slovenia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.