Authored by the expert who managed and guided the team behind the Slovenia Property Pack
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What is happening in Ljubljana’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the heart of Ljubljana to its surrounding areas. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Ljubljana real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) More foreign investors will target Slovenia as its economy strengthens
Slovenia's economy is on the upswing, making it a hot spot for foreign investors.
In 2023, Slovenia saw its foreign direct investment, net inflows as a percentage of GDP, hit 2.0935%. This uptick signals that Slovenia is catching the eye of investors from around the globe. The country's appeal is growing, and it's not just about the numbers; it's about the potential for growth and stability that investors crave.
Slovenia's GDP is also on a positive trajectory, with a 1.6% increase in 2023. Looking ahead, experts predict it will rise to 2.8% in 2024 and 2.5% in 2025. This steady growth paints a picture of a strengthening economy, which is exactly what foreign investors are looking for when they seek out stable and expanding markets.
Adding to the allure, Slovenia's credit rating was affirmed at 'A' with a stable outlook by Fitch Ratings in October 2023. This rating reflects the country's good governance, social stability, and effective public debt management. These factors boost Slovenia's credibility and make it even more attractive to those looking to invest.
For those considering buying property in Slovenia, these economic indicators are promising. The country's growing economy and stable credit rating suggest a secure environment for investment. As Slovenia continues to strengthen its economy, the number of foreign investors is likely to rise, making it an exciting time to consider investing in this vibrant country.
Sources: Trading Economics, Trading Economics, Government of Slovenia
2) City center yields will dip slightly due to high property prices and competition
Property prices in Ljubljana's city center have surged in recent years, especially in 2023 and 2024.
By January 2024, average rent hit 22 euros per square meter, doubling since 2021. This spike means higher maintenance and renovation costs, which can eat into rental yields. The city's charm and vibrant lifestyle are attracting more international students and professionals, making the real estate market fiercely competitive.
With this influx, property prices are climbing, but rental yields might not keep up. In 2023, property prices rose by 6.3%, while new apartment prices jumped by 11.9%. This gap suggests that rental yields could decline as investors face stiff competition for limited opportunities.
Local real estate agencies have noticed that rental price growth is slowing compared to property price hikes. This trend is causing investors to worry about profitability, especially with the high demand for modern, high-quality homes in central Ljubljana.
Investors are now rethinking their strategies, as the demand for these premium properties could lead to lower rental yields. The allure of Ljubljana's city center is undeniable, but the high property prices and competition are making it a challenging market.
Sources: Statista, Elite Property Slovenia, Baza Real Estate
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 property prices will rise moderately due to limited land availability
In recent years, Ljubljana has seen a significant rise in greenfield land prices, jumping from €120 to over €250 per square meter. This increase highlights the scarcity of available land for new developments, making it harder to find space for new housing projects.
As of 2022, Ljubljana's population density was 1,736 people per square kilometer, which is quite high. This growing population means more people are looking for homes, pushing up the demand for housing and, consequently, property prices.
Additionally, the city has been implementing government restrictions on urban sprawl. By promoting sustainable urban development and linking growth to public transport routes, these policies limit the availability of new development areas, further constraining the supply of housing.
Sources: City Population, ISOCARP
4) Ljubljana's rental yields will increase with rising demand for rental properties
Rental yields in Ljubljana are on the rise as more people look for places to rent.
In recent years, rental prices have doubled, hitting 22 euros per square meter by January 2024. This jump shows just how much people want to rent here, which is great news for anyone owning rental properties.
The rental market is buzzing with activity, with high occupancy rates and even bidding wars for available places. This fierce competition is pushing rental prices up, which means better returns for landlords.
Ljubljana is drawing in students and young professionals who are chasing better jobs and a vibrant lifestyle. This wave of newcomers is boosting the demand for rentals, as many prefer renting over buying. Property prices have shot up by 53.9% from 2018 to 2023, making renting a more attractive option.
With more people moving to the city, the rental market is only getting hotter. This trend is especially noticeable among young professionals who are not ready to commit to buying a home yet. They are looking for flexibility and convenience, which renting offers.
As the city continues to grow and attract talent, the demand for rental properties is expected to keep climbing. This ongoing demand is a promising sign for rental yields, making it a good time to consider investing in Ljubljana's rental market.
Sources: Global Property Guide, Schengen News, Housing Critical
5) The Center district will keep high property values due to its historical importance and limited availability
The Center district in Ljubljana is a UNESCO World Heritage Site, famous for its charming streets and squares.
Because of its historical significance, the area is a magnet for both tourists and locals, which drives up demand for properties. This demand is further fueled by strict preservation laws that limit new construction, making existing properties even more desirable.
With new buildings being a rarity, the scarcity of properties in the Center district keeps values high. Investors find this area particularly appealing due to its higher average rental yield compared to other parts of the city.
Property prices in central Ljubljana have been on the rise, with a two-bedroom apartment in the Center district costing around €490,000. This upward trend suggests that values will continue to climb.
Moreover, properties in this area have a low turnover rate, meaning owners tend to hold onto them longer. This behavior further supports the high property values in the district.
Given its historical charm and limited availability, the Center district is poised to maintain its high property values for the foreseeable future.
Sources: Global Property Guide, Ljubljana Frogs, Global Property Guide
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6) Ljubljana rents will rise as the city attracts more international students
Ljubljana is becoming a hotspot for international students, with 3,640 foreign students enrolling at the University of Ljubljana in 2023.
This growing number of students is pushing up the demand for rental properties, especially near the university. Each year, around 1,400 exchange students are on the lookout for housing beyond the limited dormitory spaces available.
The city is struggling to keep up with this demand. The University of Ljubljana, which enrolls over 40,000 students annually, can only offer 7,000 beds in its student housing facilities.
This shortfall means many students face long waiting lists and are forced to find private accommodations. The pressure on the rental market is intense, with students competing for limited spaces.
As Ljubljana becomes more attractive to international students, the rental market is expected to tighten further. This trend is likely to continue, making it a potentially lucrative opportunity for property investors.
Sources: University of Ljubljana, Eurydice, China-CEE, University of Ljubljana Annual Report 2023
7) Virtual reality tours will attract tech-savvy buyers as they become more common in real estate
Virtual reality tours have become a staple in the real estate market, especially appealing to tech-savvy buyers. By 2025, virtual tours and 360-degree imagery have become the industry standard, allowing buyers to explore properties remotely. This shift is driven by the fact that more than 50% of adults have taken a virtual tour, and 67% of home buyers now expect a virtual tour when looking at a listing.
In Ljubljana, the trend is supported by the rising digital skills among the population. Although Slovenia's basic digital skills coverage was below the EU average in 2023, it showed a growing trend in digital literacy. This increase in tech-savvy individuals means more potential buyers are interested in VR tours. Additionally, real estate listings with virtual home tours receive 87% more views, and potential buyers spend significantly more time on these websites, indicating a strong demand for immersive property experiences.
Moreover, advancements in VR technology have made it more accessible and affordable. Tools like 3D floor plans and interactive measuring tools enhance the viewer experience, making it easier for buyers to visualize properties. As more real estate agencies adopt VR technology, it becomes a standard feature in property listings, further attracting tech-savvy buyers who value convenience and immersive experiences.
Sources: PhotoUp, Digital Skills & Jobs
8) Foreign investment will drive a steady rise in real estate prices
The real estate market in Ljubljana is steadily rising, thanks to foreign investment.
From 2020 to 2024, property prices in Ljubljana have seen an average annual growth of 10%. This surge is largely due to the increasing demand for housing in major cities like Ljubljana, which is making it harder for younger generations to afford homes.
Slovenia is becoming a magnet for foreign direct investment, and this trend is expected to continue. This influx is likely to boost Ljubljana's real estate market even further. Big names like Manpower, Philip Morris, and Kuehne + Nagel have set up shop in the city, signaling its growing appeal as a business hub, which can push property prices higher.
Ljubljana's charm, with its rich culture and history, keeps attracting tourists and expatriates, driving up demand for short-term rentals and investment properties. This influx of expatriates is a key factor in the rising demand for residential properties.
Positive media coverage is shining a light on Ljubljana's attractiveness as an investment hotspot. The city's favorable business environment, infrastructure upgrades, and cultural allure are drawing more foreign investors.
With all these factors in play, it's no wonder that foreign investors are increasingly eyeing Ljubljana as a prime location for real estate investment.
Sources: TMF Group, VRJ Nepremicnine, Office Lovin
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) Foreign buyers will show more interest in Ljubljana as it becomes known as a tech and innovation hub
Interest from foreign buyers in Ljubljana is likely to increase as the city gains recognition as a tech and innovation center. In 2023, Slovenia's inward foreign direct investment (FDI) rose by 9.1% to €22.1 billion, with significant contributions from countries like Austria, Luxembourg, and Germany. This growth in FDI indicates a rising interest in Slovenia's real estate and business sectors, including Ljubljana.
The increasing number of tech startups and innovation hubs in Ljubljana is another factor. Events like the MakeIT 2025 & JCON OpenBlend Slovenia 2025 conference attract developers and decision-makers, boosting the city's tech scene. These international tech conferences and events hosted in Ljubljana help draw more foreign interest and investment.
Moreover, Slovenia, including Ljubljana, is known for its high quality of life and relatively low cost of living compared to other European tech hubs. This makes it an attractive destination for entrepreneurs and investors. The growth in coworking spaces and tech incubators in the city further supports the influx of skilled tech professionals, enhancing Ljubljana's appeal as a tech hub.
Sources: Slovenia Times, MakeIT Slovenia, Petrol Group Report
10) Ljubljana will attract more foreign buyers as it gains a reputation as a cultural hub
Foreign buyers are showing increased interest in Ljubljana, largely due to its growing reputation as a cultural hub. The city has been hosting a rising number of international cultural events, such as the Ljubljana Festival, which is one of the oldest music festivals in Europe. This festival attracts world-class artists and cultural institutions, drawing visitors from all over the world.
In 2023, Ljubljana saw a surge in international tourist arrivals, with a record-breaking 6 million tourists visiting Slovenia. This influx highlights the city's cultural charm and appeal. Additionally, international media outlets like the Financial Times have been spotlighting Slovenia as a top destination for luxury property investment, further drawing attention to Ljubljana's vibrant cultural scene.
Moreover, surveys have shown foreign interest in Ljubljana’s cultural scene, with numerous festivals and exhibitions attracting international attention. For instance, the Ljubljana Festival International Competition for Brass Quintets and Quartets in 2025 is open to young musicians and ensembles from all over the world. This growing interest is also reflected in the increasing enrollment of international students at the University of Ljubljana, which saw 3,640 foreign students in 2023, boosting the demand for rental properties near the university.
Sources: EFA News, Visit Ljubljana, Ljubljana Festival, Rick Steves
11) Co-living spaces will gain popularity as young professionals look for affordable housing options
Co-living spaces are becoming increasingly popular among young professionals seeking affordable housing.
In Ljubljana, rental prices have soared, doubling between 2021 and 2024, making it tough for many to afford traditional housing. By early 2024, the average rent hit 22 euros per square meter, pushing young people to explore alternative living options.
Slovenia is grappling with a housing shortage, needing 49,000 rental units and facing a massive investment gap. This has sparked interest in co-living spaces, which offer a more budget-friendly and flexible way to live.
These spaces are a hit with millennials and Gen Z, who value flexibility. Co-living provides private rooms and shared common areas, perfectly matching their lifestyle. Plus, the social vibe of co-living means networking opportunities and community events are part of the package.
For those considering a move to the country, co-living spaces offer a unique blend of affordability and community. They cater to the modern desire for connection and flexibility, making them an attractive option for young professionals.
As more young people look for affordable housing, the demand for co-living spaces is expected to grow. This trend is reshaping the housing market, offering a fresh take on urban living.
Sources: Statista, CEB, Mindy Hibbard Real Estate, Southeast News Channel Nebraska
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12) Newly developed areas will see rising rental yields as they attract young professionals
Rental yields in newly developed areas are set to rise as they become magnets for young professionals.
Ljubljana is buzzing with a surge of young professionals, thanks to its thriving tech scene. The city is on track to host over 1,200 startups in IT and software by 2025, making it a hotspot for ambitious talent. This influx naturally boosts the demand for rental properties, especially in urban areas with great connectivity.
These young professionals often have higher disposable incomes, allowing them to seek out modern, high-quality living spaces. This appetite for better homes pushes rental prices up, leading to higher rental yields. Ljubljana's investment in public transport and connectivity only adds to its appeal, further driving up rental demand.
In Slovenia, particularly in Ljubljana's city center, the average gross rental yield is already impressive. For example, a 2-bedroom apartment in the city center boasts a gross rental yield of 5.76%. This indicates strong potential for rental income growth as more young professionals flock to the area.
As these newly developed areas continue to attract young talent, rental yields are expected to climb. The combination of a vibrant tech industry, excellent connectivity, and high-quality living spaces makes these areas particularly appealing.
With the ongoing influx of young professionals, rental properties in these areas are in high demand. This trend is likely to continue, offering promising opportunities for property investors looking to capitalize on the growing rental market.
Sources: Global Property Guide, Digital Nomads World
13) Ljubljana’s property prices will slightly decrease as new developments boost supply
In recent years, Ljubljana has seen a notable increase in new residential developments. In 2023, the number of building permits issued in Slovenia rose by 6.7%, with Ljubljana playing a significant role in this growth. This trend continued with approximately 5,500 housing units under construction in the city and its surroundings, indicating a substantial boost in new residential projects.
As these new developments come online, they are expected to increase the supply of housing in the market. This is particularly evident in the rental sector, where the rising demand for rentals in Ljubljana has led to a competitive market with high occupancy rates. However, with more properties becoming available, there could be a shift in the supply-demand balance, potentially leading to a decrease in rental prices.
Moreover, the number of dwelling transactions in Slovenia fell sharply by 24% in 2023, suggesting a slowdown in property sales for existing homes. This could be a sign that the market is beginning to adjust to the influx of new developments, which might lead to a slight decline in property prices as the increased supply meets the existing demand.
Sources: Global Property Guide, E-Prostor, OECD
14) Ljubljana’s property prices will stabilize following a period of rapid growth
Ljubljana's property prices surged in 2023 and 2024, but signs point to stabilization soon.
One reason for this is the slowing growth rate of property prices. While prices shot up in recent years, the expected increase for 2025 is a more manageable 3% to 7%. This is a big shift from the rapid hikes we've seen.
New housing developments are also playing a part. Projects like new apartments in the Prule district and Rezidence 66 in Nove Mesto are set to add more homes to the market. This boost in supply should help balance things out and keep prices from climbing too fast.
Government policies are another factor. Efforts to promote sustainable urban development and green building could make properties more appealing, which might help stabilize prices. These initiatives are not just about being eco-friendly; they also make economic sense.
Economic shifts could also influence the market. If there's a downturn or changes in government policies, it might reduce demand, which would affect property prices. These factors are worth keeping an eye on if you're considering buying.
Sources: Elite Property Slovenia, Elite Property Slovenia, OTP Banka
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) Eco-friendly homes will become more popular as buyers' environmental awareness increases
Eco-friendly homes are becoming more popular as people become more aware of environmental issues. In recent years, we've seen a significant increase in the sales of eco-friendly building materials. For example, the Europe Low-Carbon Construction Material Market was valued at USD 64.12 billion in 2023 and is expected to grow even more in the coming years. This growth is driven by stricter environmental regulations and a rising demand for sustainable buildings.
In Slovenia, there has been a noticeable rise in nearly zero-energy buildings, thanks to government incentives. From 2022 to 2023, the government offered 6 million euros in non-refundable incentives to encourage the construction of energy-efficient buildings. This aligns with the Slovenian National Energy and Climate Plan, which aims to significantly reduce building emissions by 2030.
Moreover, consumer surveys show a growing preference for sustainable living options. Many Slovenians value community-focused living, which is reflected in the demand for homes with shared amenities and green spaces. This trend is further supported by media coverage that highlights the benefits of eco-friendly homes, increasing consumer interest.
Additionally, the energy crisis of 2023 and 2024 has led to a heightened interest in energy-efficient homes. These homes offer potential savings on energy bills, making them an attractive option for many buyers. Local businesses in Slovenia are also contributing by offering eco-friendly home solutions, blending traditional methods with modern sustainable materials.
Sources: GlobeNewswire, Ecophiles, Bee Smart City
16) Property values in Polje will decline due to market oversupply
In recent years, the Polje neighborhood in Ljubljana has been facing a potential decrease in property values due to an oversupply in the market. One of the key indicators of this trend is the increase in housing units from recent construction projects. In Slovenia, there has been a notable rise in the share of new flats in the total number of flats sold, with many being sold unfinished. This suggests an increase in housing supply, which could lead to oversupply in specific neighborhoods like Polje.
Additionally, declining rental yields in the neighborhood further highlight the issue of oversupply. While the average gross rental yield in Ljubljana was 4.45% in early 2024, specific neighborhoods like Polje might experience lower yields. This is because an oversupply of properties can lead to reduced rental income, making investments in these areas less attractive and potentially decreasing property values.
Moreover, historical data from similar oversupplied markets provides evidence that price drops are common when there is an oversupply of housing units. For example, in China, primary home prices were anticipated to decline significantly due to high inventory levels. This historical trend suggests that Polje could experience similar price corrections due to its oversupply situation.
Sources: S&P Global, Global Property Guide, E-Prostor
17) Foreign buyers will target luxury properties in Ljubljana’s city center and nearby areas
Foreign buyers are eyeing luxury properties in Ljubljana's city center and nearby areas.
Ljubljana's property prices have been climbing, especially downtown, due to high demand and limited supply. This scarcity makes the area a magnet for those wanting to invest in high-value real estate. The allure of owning property in such a sought-after location is undeniable.
Since 2003, Slovenia has been a favorite for foreign investors, thanks to its liberal foreign homeownership rules. This ease of buying property makes Ljubljana an attractive option for international buyers. The city has also caught the eye of international media, further boosting its appeal as a luxury investment hotspot.
Luxury developments are popping up in Ljubljana, specifically targeting foreign investors. These projects, combined with the city's economic stability and cultural charm, make it a prime destination for luxury real estate investment. Real estate agencies are seeing a surge in inquiries from international buyers, showing strong interest in the area.
Ljubljana's blend of modern luxury and historical charm is a big draw. The city offers a unique lifestyle that appeals to those looking for more than just a property investment. With its vibrant culture and stable economy, Ljubljana is a top choice for luxury property seekers.
Sources: CBRE, Slovenia Estates
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.