Buying real estate in Ljubljana?

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17 strong forecasts for real estate in Ljubljana in 2025

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Authored by the expert who managed and guided the team behind the Slovenia Property Pack

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What will happen in Ljubljana’s real estate market? Will prices go up or down? Is Ljubljana still a hotspot for foreign investors? How is Slovenia’s government impacting real estate policies and taxes in 2025?

We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Ljubljana, we’ve gained firsthand insights.

That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.

Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

How this content was created 🔎📝

At Investropa, we study the Ljubljana real estate market every day. Our team doesn’t just analyze data from a distance—we’re actively engaging with local realtors, investors, and property managers throughout the city. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

When working on this content, we started by gathering insights from these conversations and our own observations. But we didn’t stop there. To make sure our predictions are reliable, we also dug into trusted sources like Slovenian Government Initiatives, OECD, and Statista (among many others).

We are committed to accuracy and authority. Any forecast lacking strong backing from reliable data or expert opinions was set aside. For the forecasts that pass our initial screening (meaning, we consider there is enough solid data to consider them credible), we take things a step further by incorporating insights from trusted real estate blogs, industry publications, and expert analyses. This additional information helps us gain a clearer perspective without compromising reliability. Naturally, we also draw on our own experience and knowledge.

Trustworthiness is key to us. Clear citations are provided throughout this article, allowing you to see exactly where our information comes from. To ensure our explanations are easy to read and engaging, we used an AI-powered writing tool—but only for this specific purpose.

To make the data even more accessible, our design team created custom infographics that highlight key trends and comparisons. We hope you find them helpful.

Finally, every illustration, screenshot, and other non-text media was produced in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) City center yields will drop as property prices rise faster than rental income

In Ljubljana's city center, property prices have skyrocketed by 53.9% from 2018 to 2023.

This surge in property values is not matched by rental income growth. As of January 2024, average rent stands at 22 euros per square meter, which is double what it was in 2021. However, this increase still doesn't keep up with the soaring property prices.

For those considering buying property, it's crucial to note that rental yields in Slovenia have been declining. In early 2024, the average gross rental yield was 4.45%, barely above the 4.40% recorded in mid-2023.

While the slight increase in yields might seem promising, it doesn't compare to the rapid rise in property prices. This trend suggests that investors might face lower returns as property values outpace rental income growth.

Insider knowledge reveals that the rental market isn't catching up with the property boom, making it challenging for investors to achieve high yields.

As property prices continue to climb, the gap between property values and rental income widens, potentially leading to a decline in yields for city center properties.

Sources: Aparthotel, Statista, Slovenia Housing Market

2) More foreign investors will enter Ljubljana’s real estate market as the city becomes more internationally recognized

In recent years, Ljubljana has gained significant international recognition, which is likely to lead to an increase in foreign investors in its real estate market. One of the key indicators of this trend is the city's ranking as one of the top ten property investment destinations globally, with a projected growth of over 280% in the next decade. This suggests a strong and growing interest from foreign investors looking to capitalize on the city's potential.

Additionally, Ljubljana's increasing international media coverage highlights its desirable location and economic growth, further attracting foreign investors. The city's appeal is also bolstered by a surge in tourism, with a 20.7% increase in overnight stays in 2023, indicating a rising global interest that often precedes real estate investment. Moreover, the presence of international companies setting up offices in Ljubljana, such as Manpower and Philip Morris, suggests that the city is becoming a hub for international business, which can attract more foreign investors.

Furthermore, Slovenia's significant foreign direct investment, supported by government incentives for foreign investment in real estate, enhances Ljubljana's attractiveness to foreign investors. The trend towards emerging European markets, with investors seeking opportunities in countries like Slovenia, indicates that Ljubljana will continue to draw more foreign real estate investors. The increasing number of international real estate agencies operating in Ljubljana also points to a growing demand for properties and services tailored to foreign investors, indicating a robust market ready for further growth.

Sources: Gov.si, TMF Group, Slovenia Estates, ETIAS

infographics rental yields citiesLjubljana

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Slovenia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

3) Ljubljana’s home prices will dip slightly because of economic uncertainties

In Ljubljana, property prices are expected to dip slightly due to economic uncertainties.

The Bank of Slovenia has adjusted its expectations, lowering the GDP growth forecast to 2.2% for 2025. This shift indicates a less vibrant economy, which often leads to softer property prices. When the economy slows, people tend to be more cautious about big investments like buying a home.

Interest rates are another factor at play. The European Central Bank has increased rates, making mortgages more expensive. Higher borrowing costs mean fewer people can afford to buy, which naturally cools the demand for homes. If you're considering buying, this could mean less competition and potentially better deals.

Foreign investment, which has been a key player in Ljubljana's real estate market, is also on the decline. With less foreign money coming in, the demand for homes is likely to decrease. This reduction in demand can lead to lower prices, offering opportunities for local buyers.

For those looking to invest, this might be a good time to explore the market. Fewer buyers and lower prices could work in your favor. Keep an eye on these trends, as they can offer insights into when and where to buy.

Understanding these dynamics can help you make informed decisions. Economic shifts and market trends are crucial when considering property investments in Ljubljana.

Sources: Business Insider, Slovenia Business

4) Ljubljana's property prices will adjust moderately as new developments are completed

The city's property market is set for a moderate price correction as new developments wrap up.

In May 2023, there was an 18% jump in building permits compared to April, signaling a boom in construction. This uptick means more homes and commercial spaces are on the way, which could ease the current market pressure.

Residential construction is on the rise, with planned dwellings increasing from 292 in April to 554 in May 2023. This surge is backed by the Surveying and Mapping Authority, which notes that many new homes in cities like Ljubljana are selling even before they're finished.

When new housing supply outpaces demand, prices usually stabilize or drop. This trend has been seen elsewhere and is likely to happen in Ljubljana too. The rapid rise in housing prices, driven by limited supply, might slow down as these new projects come online.

Local media have pointed out that the quick rise in housing prices was due to supply constraints. However, the completion of new developments is expected to ease these constraints and bring some balance to the market.

For potential buyers, this could mean more options and possibly better prices as the market adjusts to the increased supply.

Sources: TradingView, Slovenia Times

5) Rental yields in Ljubljana will stay steady as supply and demand balance out

Rental yields in Ljubljana are expected to stay steady as the market balances supply and demand.

Tourism is booming, and with more international students flocking to the University of Ljubljana, rental demand is on the rise. In 2023, the university saw a surge in international student numbers, which naturally increased the need for rental properties, especially around the campus.

Property prices in Ljubljana are climbing, with a 6.3% increase in residential real estate prices in 2023. This trend shows strong housing demand, which helps keep rental yields stable. The Slovenian government is stepping in to address the housing shortage by planning to build 5,000 new homes by 2026, including 1,000 units in 2024, which should make housing more affordable.

Looking at past data, rental yields have been consistent, with the average gross rental yield in Slovenia at 4.45% in Q1, 2024. This stability is backed by low vacancy rates, thanks to the strong demand from tourists and students. The government's plan to build new homes aims to keep up with population growth, ensuring that housing projects meet the rising demand.

Sources: Global Property Guide, University of Ljubljana, Slovenian Government Initiatives

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6) Ljubljana’s property prices will keep rising because demand is high and supply is limited

Ljubljana's property market is heating up due to a tight supply of new homes.

In the Šiška district, a recent project offered just 28 out of 221 apartments, while developments like Koseško okno and Masarykova have already sold out. This scarcity means fewer homes are available, driving up prices as buyers compete for limited options.

Ljubljana is gaining a reputation as a tech and innovation hub, attracting young professionals and startups. This influx of new residents is boosting demand for housing. The city's cultural and historical charm also draws tourists and expatriates, who are keen on short-term rentals and investment properties.

Urbanization and the rise of remote work are pushing more people to seek homes in Slovenia's cities, especially Ljubljana. This trend is further increasing demand for housing in the area.

With more people wanting to live in Ljubljana and a limited number of homes available, it's no wonder property prices are climbing.

Sources: Biseri Soče, Housing Critical

7) Demand for senior-friendly housing in Ljubljana will grow as the population ages

In 2023, over 20.7% of Slovenians were aged 65 or older, and this percentage is expected to rise significantly by 2050. This means that a larger portion of the population will be older, and they will need homes that suit their needs as they age.

People in Slovenia are living longer, with life expectancy at birth reported at 81.28 years in 2022. As people live longer, they often require housing that is more accessible and easier to manage, which increases the demand for senior-friendly housing.

The Slovenian government has an Active Ageing Strategy that encourages the development of age-friendly housing. This initiative supports independent living and aims to create environments that cater to the needs of older adults, further driving the demand for such housing options.

There is also a growing demand for smaller, accessible homes and retirement communities. This trend is driven by the aging population looking for convenience and comfort, aligning with the National Housing Programme 2015-2025, which aims to boost affordable rental housing.

Sources: OECD, Trading Economics, Trading Economics, Interreg Europe

8) Property prices in Moste will rise as it transforms into a cultural and creative hub

The Moste neighborhood in Ljubljana is on the brink of becoming a cultural and creative hotspot, which is expected to boost property prices.

In nearby cultural districts, property prices per square meter are already higher compared to other city areas. This trend suggests that as Moste enhances its cultural scene, property values will likely rise too.

One major development is the transformation of the former Rog factory into Center Rog, a public space for applied arts and design. This project involves over 300 stakeholders, showing a strong commitment to building a vibrant cultural environment in Ljubljana.

The City of Ljubljana is also backing Moste's cultural growth. Government initiatives like the Rog factory revitalization and the creation of an artistic district in the Švicarija building highlight this support, making the area more attractive to residents and investors.

Moste's appeal is further enhanced by the increasing number of art galleries and creative spaces. The renovated Švicarija building, offering studios and residences for artists, is a key example of how the area is drawing in creative professionals. This influx of artists can drive up property prices as they seek culturally rich environments.

With these developments, Moste is becoming a magnet for creatives, which is likely to lead to a rise in property values as the neighborhood transforms into a cultural hub.

Sources: Properstar, Agenda 21 Culture, City of Ljubljana

statistics infographics real estate market Ljubljana

We have made this infographic to give you a quick and clear snapshot of the property market in Slovenia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

9) Demand for affordable rentals near universities will grow as the student population increases in the city

The city's growing student population is a major driver for affordable rentals near universities.

In 2024, the University of Ljubljana had 38,000 students enrolled, with a notable increase in international students over the years. This influx not only boosts the demand for housing but also adds to the city's youthful vibe.

Many students prefer off-campus living, which means private rentals near universities are in high demand. Students are on the lookout for budget-friendly options like shared rooms and private student flats, with prices ranging from €150 to €220 per month.

Ljubljana faces a shortage of affordable housing, with only 410 dwellings per 1,000 inhabitants, which is below the EU and OECD averages. This shortage is more evident in cities like Ljubljana, where property prices keep climbing.

Even with plans to build new homes, the demand for affordable student housing remains strong. The city's vibrant student life and limited housing options make it a competitive market for rentals.

For those considering investing in property, understanding these dynamics can be crucial. The student population is not just a statistic; it's a driving force in the rental market.

Sources: EduRank, World Population Review

10) Ljubljana rents will keep increasing because of a growing population and limited housing supply

Ljubljana's population has been steadily growing, creating a buzz in the housing market.

With more people moving to the city, the demand for housing is on the rise. This isn't just about locals; the city is attracting international students and professionals, adding to the mix. In 2023, the University of Ljubljana welcomed 3,640 foreign students, which is putting extra pressure on the rental market.

But here's the catch: new housing supply is tight. The city center, where everyone wants to be, has limited space for new developments. This scarcity keeps the number of new housing units low, which in turn pushes property prices up.

For those eyeing a property investment, this means rents are likely to keep climbing. The combination of a growing population and limited housing options makes it a landlord's market.

So, if you're considering buying property in Ljubljana, it's worth noting that the rental market is competitive. With more people coming in and not enough places to stay, prices are expected to continue their upward trend.

In short, Ljubljana's housing market is hot, driven by a mix of local and international demand and a tight supply of new homes.

Sources: World Population Review, Statista

11) Competition and prices will rise as foreign buyers target city center properties

Foreign buyers are zeroing in on Ljubljana's city center properties, sparking fierce competition and driving prices up.

Ljubljana's charm and economic stability make it a magnet for tourists and expats seeking quality homes. This allure is particularly strong among the growing middle and upper-middle class, who are drawn to the city's vibrant culture and lifestyle.

The city center's limited housing supply is another key factor. Gentrification is transforming these areas, catering to upper-class and tourist interests. This shift is not just about aesthetics; it's reshaping wealth distribution and making central districts prime real estate.

Ljubljana is also becoming a hotspot for international students and professionals. The University of Ljubljana's rising international enrollment is boosting demand for rentals near campus, adding to the pressure on central housing.

Foreign homeownership rules in Slovenia are quite liberal, making it easy for outsiders to invest. This ease of access is attracting foreign buyers interested in luxury properties, further heating up the market.

With these dynamics at play, the city center is seeing a surge in interest, leading to increased competition and higher property prices. The influx of international students and professionals only adds to this demand, making central Ljubljana a real estate hotspot.

Sources: Global Property Guide, Urban Matters Journal

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12) Property price growth in Šentvid will slow down as it becomes less appealing to new buyers

In Šentvid, Ljubljana, property price growth is slowing down.

One sign of this trend is the decreasing number of property sales. In early 2024, Slovenia saw 2,057 properties sold for 340.4 million EUR, which is less than before. This might mean fewer people are buying or they're looking elsewhere.

There's also a growing number of unsold homes in Slovenia. In the second quarter of 2024, new residential properties dropped by 7.6%. This could mean more unsold homes in Šentvid, making it less appealing to buyers. People seem to prefer other neighborhoods, as Šentvid is cheaper than places like Šiška and Vič.

When you compare prices, Šentvid's growth is slower. The average price per square meter in Ljubljana is $4,900, but new apartments in Šentvid are around $310,000, while in Šiška, they're $490,000. This slower price growth might turn off investors looking for good returns.

Even though there aren't specific reports of infrastructure problems in Šentvid, general issues in Ljubljana could affect interest in certain areas. Buyers might be cautious if they think infrastructure isn't up to par.

Šentvid's lower prices and slower growth make it less attractive to new buyers, especially when compared to more expensive neighborhoods. This trend could continue as buyer preferences shift.

Source: Elite Property Slovenia

13) Rental yields in suburban areas will rise as more people look for affordable housing options

In Ljubljana, property prices in the city center rose by 6.3% annually in 2023, making urban living pricier.

With Slovenia having only 410 dwellings per 1000 inhabitants, the demand for affordable housing was high, pushing people to explore suburban options. Despite plans for new homes, the shortage persisted, making suburban areas more attractive.

In 2023, there was a noticeable shift as residential property sales in cities dropped by 25-30%, signaling a move to the suburbs. This was largely due to the cost difference, where a one-bedroom apartment in the city center was much pricier than in the suburbs.

Suburban living became more appealing with improved transportation links to the city center. Better roads and public amenities, along with a 20% rise in Slovenian train ridership in 2022, made these areas more accessible.

As more people sought affordable housing, suburban areas saw an increase in rental yields. This trend was driven by the migration from urban centers, where living costs were higher.

For those considering buying property, the suburbs offer a promising opportunity with affordable prices and growing demand. The shift from city to suburb is reshaping the housing market landscape.

Sources: Global Property Guide, Slovenia Estates, Numbeo

14) Rental yields in Ljubljana will rise as more young professionals seek rental properties

Rental yields in Ljubljana are on the rise as more young professionals flock to the city.

Central Ljubljana is seeing a surge in rental prices, driven by an influx of international students and professionals. This means landlords can now charge higher rents, boosting their rental yields.

Ljubljana is becoming a tech hub, with Slovenia set to host over 1,200 startups in IT and software by 2025. This boom is attracting many young professionals to the area, increasing the demand for rental properties.

Young professionals are showing a clear preference for renting over buying, especially in urban areas with great connectivity. In 2022, there was a 20% rise in Slovenian train ridership, highlighting the desire for well-connected locations.

The limited availability of affordable housing for purchase is another factor. Many young professionals are opting to rent in vibrant city centers, further driving up demand for rental properties.

With these trends, landlords in Ljubljana are poised to benefit from increased rental yields as the city continues to attract young talent.

Sources: Global Property Guide, AG Skupina

infographics comparison property prices Ljubljana

We made this infographic to show you how property prices in Slovenia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

15) Property prices in Ljubljana will rise steadily due to increased foreign investment

Ljubljana has been experiencing a steady increase in property prices, largely driven by foreign investment. This trend can be traced back to Slovenia's liberal foreign homeownership rules, which have made it an attractive destination for international buyers since 2003. The ease with which foreigners can invest in real estate here has been a significant factor in driving up demand.

Moreover, Slovenia's integration into the European Union and Eurozone has provided economic stability, making it an appealing destination for investors. This stability, combined with its strategic location, has attracted significant foreign direct investment. Ljubljana, in particular, is becoming a tech and innovation hub, drawing young professionals and startups, which in turn increases demand for residential properties.

The city's vibrant cultural scene and economic stability have also made it a desirable location for expatriates, further fueling housing demand. Surveys indicate a growing foreign interest in Slovenia's real estate market, with a notable 6.77% annual growth in the house price index in 2023, especially in urban hotspots like Ljubljana. Additionally, media reports highlight Ljubljana's cultural and historical appeal, which continues to draw tourists and expatriates, increasing demand for short-term rental properties and investment opportunities.

Sources: Elite Property Slovenia, Slovenia Times

16) Demand for co-living spaces in Ljubljana will grow as people look for affordable and flexible housing options

Ljubljana is experiencing a rise in demand for co-living spaces, and there are several reasons for this trend. First, property prices in Ljubljana have been steadily increasing, making traditional housing options less affordable for many people. In 2023, residential real estate prices jumped by 6.3% annually, which has made it challenging for individuals to find affordable housing.

Additionally, the city has seen a significant increase in population growth, driven by both natural increase and immigration. This growth has put pressure on the housing market, leading to a shortage of available dwellings. With only 410 dwellings per 1,000 inhabitants, the housing shortage in Ljubljana is a pressing issue, making co-living spaces an attractive alternative for many.

Moreover, there is a growing preference among younger demographics for flexible living arrangements. Many young people are drawn to community-oriented living, where they can share amenities and build a sense of community. The success of existing co-living spaces, like the Gerbičeva Youth Community building, highlights the demand for affordable living options with shared facilities.

Sources: University of Ljubljana, Property Forum, Property Forum

17) Demand for properties with outdoor spaces in Ljubljana will grow as lifestyle preferences change

Ljubljana residents are increasingly prioritizing properties with outdoor spaces.

In the heart of the city, real estate listings now emphasize features like gardens and balconies as key selling points. Imagine a charming duplex in Ljubljana Old Town, where a balcony offers stunning views of medieval streets—such properties are in high demand.

There's also been a noticeable uptick in the sales of outdoor furniture and gardening supplies. Companies like Škerjanc, known for their quality, report a surge in sales of garden furniture sets and sun loungers. This indicates that people are keen on creating inviting outdoor spaces at home.

Urban gardening is blossoming in Ljubljana, with community gardens becoming a popular trend. This reflects a growing desire for green spaces and sustainable living, aligning with the city's urban sustainability goals. Residents are increasingly drawn to homes that offer these outdoor amenities.

Real estate agents have noticed a shift in buyer preferences, with more people seeking homes that include outdoor features. This trend underscores the importance of outdoor spaces in home-buying decisions, as people look to enhance their living environments.

Sources: Supernova Ljubljana, Think Slovenia

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.