Controversies remain for Slovenian giga rail project nearing completion

Posted on by efalucskai

Written by Dr Aleš Pustovrh – Bogatin, EECFA Slovenia

With the main construction consortium submitting a claim for another EUR 350 million now, the project of Port Koper in Slovenia has again caught public imagination. Despite its 80% readiness, given its past controversies, it is facing scrutiny in its final phase. The second double-track railway line, scheduled for completion in 2026, is set to remove the bottleneck of the existing single-track one between Koper and Divača.

Exterior of the tunnels on the second track route – Source: https://drugitir.si/en/media-center/photo-gallery

Why such a large-scale railway investment was necessary

Port Koper, Slovenia’s largest seaport, saw consistent growth over the past two decades and evolved into a major logistics gateway for Central and Eastern Europe. In 2024 alone, the port handled approximately 23 million tons of cargo, 3% up from the previous year, while container throughput reached a record 1.13 million TEUs. This performance positions Koper among the leading Adriatic ports, competing closely with Trieste and Rijeka. However, growing volumes of container traffic, vehicle imports, and bulk cargo pushed the port’s capacity toward its limits, particularly due to inadequate inland rail connectivity. The existing single-track railway between Koper and Divača became a major bottleneck, hindering further expansion and reducing overall logistics efficiency.

To enable continued growth, enhance competitiveness, and shift freight from road to rail, the construction of a new, modern double-track railway became essential. The new 27km line is designed to fully replace the existing track and significantly boost capacity—from 90 to 212 train compositions per day—enabling the annual transport of nearly 37 million tons of goods, nearly three times more than before.

An EUR 1.172 billion project

The project is highly complex as it requires significant altitude gain and traverses challenging terrain (20.5km of the new line runs through tunnels and an additional 1.2km over bridges). These engineering challenges have driven up costs considerably. The latest estimate for the project, excluding VAT and calculated at current prices, stands at around EUR 1.172 billion. Project costs have escalated over time.

Initially, in 2010, the project was estimated at around EUR 700 million as a single-track route. Once the plan was changed to a double-track design, costs were expected to rise, but no clear or transparent cost projection was communicated to the public. Combined with an unclear financing structure, this led to growing public concern and political controversy.

As a result, a national referendum was held in which a majority of voters supported the continuation of the project. This decision was later upheld by the Slovenian Supreme Court. To manage the project, the state established a dedicated company, 2TDK, which also implemented a civil oversight and advisory board to address public concerns. A special management and supervision system was introduced to improve transparency and accountability.

Preparations began in 2019, and major works commenced in 2021. Construction is carried out by several prominent companies organized into consortia. The main infrastructure works, including tunnels and viaducts, are executed by a consortium of Kolektor CPG (Slovenia), Yapı Merkezi İnşaat ve Sanayi A.Ş. (Türkiye) and Özaltın İnşaat Ticaret ve Sanayi A.Ş. (Türkiye) on a combined value of roughly EUR 628.3 million.

The final phase of the project, valued at EUR 203.8 million, covers railway system installation including tracks, signaling, telecommunications, electrification, and tunnel equipment, and is handled by another consortium comprising SŽ-Železniško gradbeno podjetje d.d. (Slovenia), Kolektor IGIN d.o.o. (Slovenia), GH Holding d.o.o. (Slovenia) and YM Construction d.o.o. (Slovenia).

Viaducts Gabrovica and Vinjan – Source: https://drugitir.si/en/media-center/photo-gallery

Controversies casting a shadow on completion

Although there were occasional public reports of cost overruns and technical challenges during construction, the project remained largely out of the public spotlight until 2025, so this year, when the main construction consortium submitted a claim for an additional EUR 350 million in costs, citing technical difficulties.

Simultaneously, the Civil Oversight Council raised concerns about poor project governance, accusing 2TDK of opaque and inefficient decision-making. The company’s management firmly rejected these accusations. In response, the Minister of Infrastructure, Ms. Alenka Bratušek, visited the construction site and assured the public that 80% of the work had already been completed and that the project would be delivered on schedule by 2026.

Nevertheless, due to past controversies and rising scrutiny, public trust remains cautious, and the project is expected to face increased attention in its final phase.

Segment-level forecast for Slovenia is available in the EECFA Forecast Report. EECFA conducts research on the construction markets of 8 Eastern-European countries, including Slovenia. Orders and sample report

A closer look at Slovenia’s ambitious public housing plan

Posted on by efalucskai

Written by Dr Aleš Pustovrh – Bogatin, EECFA Slovenia

Slovenia is currently grappling with a pressing need for affordable rental housing as demand continues to outpace available supply. Thus, the Minister for Solidarity and the Future, Simon Maljevac, has unveiled an ambitious public policy plan aimed at constructing additional housing units. Dr Aleš Pustovrh, EECFA’s Slovenian researcher,  has delved into the key components of the government’s strategy, examining the challenges it faces and the potential impact on the housing landscape in Slovenia.

Neoclassical skyscraper Nebotičnik in Ljublana. Photo: Michal Hlavac on unsplash

Housing landscape in Slovenia: growing disparity between demand and supply

Minister Maljevac highlighted a stark reality that Slovenia lags behind the EU and OECD averages in terms of available dwellings per 1000 inhabitants. Statistical data reveals that there are only 410 dwellings per 1000 inhabitants in Slovenia. This shortage has led to a significant impact on housing prices, with an alarming 77% increase in the average price per square meter between 2015 and 2021.

Between 2015 and 2021 the number of households in Slovenia increased by almost 40,000, while only 23,000 new dwellings were constructed during the same period. This stark disparity has intensified the housing crisis, further driving up prices and making home ownership increasingly unattainable for many Slovenians.

Public housing solution: ambitious plan

Minister Maljevac believes that a crucial part of the solution lies in increasing the availability of public housing for non-profit rents. Currently, there are 23,000 such units managed by 13 local or national housing funds. However, the number of these units has remained stagnant due to minimal public investments in recent years: merely EUR 6 million in 2020 and EUR 4 million in 2021. Simultaneously, public expenditure on subsidies for for-profit rents is on the rise with an estimated annual +20%.

To address the housing crisis, the government has committed to building 5,000 new dwellings by 2026, starting with the construction of 1,000 units in 2024. The National Public Housing Fund (NPHS) plays a pivotal role in this plan. The NPHS capital was raised by EUR 25.5 million in 2023 and the same raise is planned for 2024. The NPHS will use these funds to construct its own residential dwellings and offer favourable loans to local and regional public funds or municipalities for their projects. An additional EUR 100 million in loan financing is also sought.

As the government’s plans are ambitious, there are concerns about their feasibility. The heavy reliance on public funding raises questions, particularly in a time when there are pressures to reduce public expenditure in Slovenia. The government’s dependence on public funding alone may pose a risk to the successful implementation of the plan. To enhance the viability of these plans, the government may need to consider attracting private financing and fostering public-private partnerships. Currently, such partnerships are limited in the Slovenian housing market, but they might become essential to realizing the government’s ambitious goals in the face of budget constraints.

Visit eecfa.com to obtain the EECFA Forecast Report Slovenia or to view a sample report. EECFA (Eastern European Construction Forecasting Association) conducts research on the construction markets of 8 Eastern-European countries, including Slovenia.

Slovenian housing construction boom continues – but for how long?

Posted on by efalucskai

Written by Dr Aleš Pustovrh – Bogatin, EECFA Slovenia

Residential construction boom in Slovenia continues and is set to peak this year. Nevertheless, with increasing interest rates on mortgage loans, residential construction will be facing significantly lower demand in the second half of 2023.

Slovenia continued to see strong economic growth in 2022, up by 5.4%, beating the expectations at the start of the year. But this growth greatly slowed down in late 2022 and early 2023 as increasing interest rates and high inflation started to impact disposable income. This has not resulted in slower construction growth; both civil engineering and non-residential construction greatly expanded in 2022 in nominal terms. The level of construction activity in these two subsectors was still quite close to the 2015 average (even slightly below that average in non-residential construction). But most of the nominal growth was the result of higher inflation and thus, higher construction costs. 

In residential construction, the situation is completely different. The level of residential construction was 3.3 times higher in 2021 than in 2015 in real terms (and 4 times higher in nominal terms). And in 2022 it was a staggering 5.35 times higher in real terms than in 2015 (7.8 times higher in nominal terms). At the beginning of 2023 it continued to grow by 46% annually, which is unsustainable.

Vurnikova hisa, Miklosiceva cesta, Ljubljana by Pavol Svantner unsplash.com

While demand for dwellings has likely exceeded demand in the post-COVID boom of 2021 and 2022, supply has been catching up lately and more and more dwellings have been completed. The total value of sold real estate in 2015 was estimated at EUR 1.8 billion, while in 2021 at EUR 2.8 billion[1]. Approximately 10000 dwellings are sold in Slovenia on average every year, with around 3000 in Ljubljana. At least that many are estimated to be currently under construction in Ljubljana alone. These will enter the market in 2023 and 2024, but potential customers for these dwellings are facing elevated interest rates on mortgage loans. As per recent calculations, monthly loan repayment for a EUR 200,000 loan in Slovenia has increased by EUR 400-500, making potential customers think twice before even applying for a loan. This is already evident in the real estate prices in Ljubljana that peaked in Q1 2022 and have not increased since[2], even though the overall inflation rate was almost 10% in 2022.

Forecast for the Slovenian construction market is available in the EECFA Forecast Report. EECFA conducts research on the construction markets of 8 Eastern-European countries. Orders and sample report: eecfa.com.

That means that skyrocketing housing construction in Slovenia, especially in its capital city, will be facing significantly lower demand than it was expected when construction started in 2021 and 2022. And even though residential construction growth rate is still very high, by most estimations, demand will considerably decline in the second half of 2023. If residential construction stays at the same level as in 2022, a lot will depend on public schemes for non-profit dwellings starting to contribute to total residential construction output. Private housing construction will most likely complete the projects that were started but will be reluctant to start new ones. In Q1 2023, 12% fewer building permits were issued for dwellings than a year ago[3].

Residential construction is set to reach its peak output in the first half of 2023. This will impact overall construction too, because this segment is more important than non-residential or civil engineering. It seems that residential construction boom in Slovenia will reach its peak in 2023, but the real question is how fast it will decrease in the future.

[1] https://www.e-prostor.gov.si/fileadmin/Podrocja/Trg_vrednosti_nep/Trg_nepremicnin/Porocila_o_trgu_nepremicnin/2021/Letno_porocilo_za_leto_2021.pdf

[2] https://siol.net/posel-danes/novice/kolaps-trga-v-tem-delu-ljubljane-stanovanja-po-2-600-evrov-na-kvadrat-595442

[3] https://www.stat.si/StatWeb/News/Index/11005

Potential impact of the war in Ukraine on the Slovenian construction market

Posted on by efalucskai

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

The impact assessment of the 2022 Russian invasion of Ukraine on the Slovenian construction market must take into account the current volatile situation associated with the pandemic. Even before the war in Ukraine started, building material manufacturers reduced their capacity, either due to logistics problems resulting from the global closure of countries, or due to declining demand. As the last wave of the pandemic ended, supply failed to keep up with increased demand and construction material prices began to rise. According to statistics, building material prices in Q3 2021 compared to Q3 2020 rose by a fifth. The implicit deflator of the value of construction put in place (which measures prices in construction) exceeded 14%, the highest in 20 years. Additionally, rising energy prices – electricity, gas and other fuels – contributed most to the overall construction cost increase. At end February 2022, annual inflation rate in Slovenia was 7%.

Bled, Slovenia. Photo by Florian van Duyn

Despite high inflation, construction output in Slovenia has increased. Following a gradual decline in construction activity in 2021, the value of construction works rose again in the beginning of 2022. Construction companies performed 5,8% less construction work in 2021, mainly due to a decrease in the number of projects in non-residential buildings. Yet, non-residential grew most among all construction subsectors in January 2022. High activity was also recorded in housing construction at the end of 2021 and in early 2022. Residential construction output remains high, but is still lagging behind demand for housing, resulting in a fast increase in prices for residential real estate. In nominal terms, prices at end 2021 were 26% higher than the 2008 average. In the housing market, the growth of residential real estate prices in the last quarter of 2021 accelerated further. Construction output has also increased in the civil engineering sector, backed by public investment. The state is investing in the construction of the second track to Port Koper, the third development axis in road connection, the modernization of railways, the renovation of state roads and cycle paths, the construction and renovation of the electricity network; and there are large investments in water supply infrastructure. The state is also planning to invest in healthcare. As 2022 is an election year, an increase in public expenditure was expected, but its growth has exceeded even the most optimistic expectations.

Construction activity in 2022 and beyond will be highly dependent on the development of events related to the war in Ukraine. The direct dependence of the Slovenian economy on the Russian and Ukrainian markets is relatively small, but this conflict can have a strong impact on inflation in Slovenia, the global financial markets, trust, and supply chain operations. The Russo-Ukrainian war will continue to raise commodity prices, too. Not only iron will rise in price, but also nickel and aluminium whose price has jumped to a new record. The prices of oil and natural gas are also rising, which will also raise the price of cement. Ukraine was a major exporter of clay to produce ceramic tiles, so we can expect that the price of tiles will hike due to the lack of clay and rising energy prices. Construction companies want to pass on such increases to public contracting authorities (built-in inflation), but they have only been partially successful so far. In the coming months, the measures taken by the Slovenian government will reduce energy prices, so it is projected that prices will no longer exceed the February level, but they will not decrease either. The rise in prices in construction is also affected by the lack of workers. There is still a large surplus of demand in the labour market over the supply of skilled workers in the industry.

Will Covid-19 be remembered as ‘the good crisis’ for Slovenian construction?

Posted on by efalucskai

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

Construction output in Slovenia decreased by two-thirds between 2008 and 2015 as the effects of the global financial crisis lingered and the Slovenian banking system needed restructuring. Early signs are showing that the pandemic will have much less impact and might even prove to be beneficial to the construction sector in 2021 and beyond.

Pod Pekrsko gorco project, Maribor, Slovenia – Source: https://ssrs.si

In 2008, the Slovenian construction reached levels it had never reached before since the country became independent. According to EECFA’s research, its total construction output exceeded EUR 4,6 billion in that year, which as we know now, was unsustainable. Construction output decreased for the next 8 years and embarked on a low of EUR 2,2 billion in 2016 before rebounding to an estimated EUR 3,4 billion in 2020.

Then Covid-19 struck and the whole economy entered another crisis. With lockdown measures and restrictions to the physical movement of people, including workers, it was possible that construction would once again feel the burden of a general economic crisis that might force it into a full depression. In practical terms – how can construction workers construct new projects if they are not even allowed to work in groups on site?

After some initial confusion, it quickly emerged that Covid-19 will not have the same effect on the industry. Construction was able to continue its operations unhindered. Unlike in the Great Recession, banks have kept crediting new construction projects and at very low interest rates. Disposable income of the population has not decreased due to generous anti-crisis measures supplementing the lost income. And the government was willing to run large budget deficits as it was able to borrow at virtually zero cost on international bond markets. A part of these financing was invested in different construction projects, including in health building constructions.

Additionally, a fragile coalition of centre-left parties under Prime Minister Sarec fell apart in Spring 2020 and was replaced by centre-right coalition under the new Prime Minister Jansa. His agenda is also based on implementing some long-stalled construction projects, including the new high-voltage electricity distribution network connection with Hungary and the start of the construction of the new hydroelectric power plant near Mokrice. Some previous large construction projects have been continued or even accelerated, including the start of the construction of the so-called 3rd national road axis, as well as the planned expansion of the Slovenian railroad network that would capitalize on the ongoing construction of the new railroad connection toward Port Koper.

With these big-league construction projects and numerous smaller, privately funded ones, initial data on construction output in 2020 show that instead of decreasing, it might have actually slightly increased even during the health emergency and the accompanying economic recession. Additionally, with strong economic rebound predicted for the time after the emergency, potentially as soon as in the second half of 2021, construction output might grow further.

EECFA’s Winter 2020 forecast is envisioning for Slovenian construction a 0,3% real growth in 2021 and 1,7% in 2022, but with an upside potential.

Segment-level construction forecast is available in the EECFA Winter 2020 Construction Forecast Report Slovenia that can be purchased on eecfa.com

The new government has presented an ambitious long-term plan for civil-engineering, health and nursing home construction for the next few years (although it implementation will greatly depend on the results of the next election in 2022).

It will also have plenty of financing available from the comprehensive EU Recovery Plan. In Slovenia’s national recovery and resilience plan, the European Commission has confirmed access to EUR 5.2 billion for the 2021-2027 period. All in all, it is becoming clear that unlike in the previous crisis, access to funding for construction will not be a problem this time.

Slovenia C-19 situation in construction (status on 26 April 2020)

Posted on by efalucskai

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

The COVID-19 pandemic has reached the Slovenian construction industry in a good shape. New construction contracts strengthened in H2 2019, resulting in some of the fastest growth of construction in early 2020 in the whole EU. The activity continued into March 2020 even though the lockdown measures were already implemented.

However, a decline is expected as halting construction works are affecting the entire sector:

  • There are some disruptions in the supply of materials as some manufacturers have stopped production and others have reduced production.
  • Construction work is being done less intensively mainly because of measures to protect workers.
  • Some foreign contractors have problems mainly with the logistics of their workers on projects in Slovenia.

Yet, the construction industry has been relatively less affected than some other industries (like tourism) as most large projects continue even during the lockdown measures. The concern is the absence of real estate contracts as the risk of making long-term investment decisions has also increased.

We are planning to issue the new EECFA Slovenia Construction Forecast Report on 29 June 2020. Sample report and order

Economic damage to construction segments will crucially depend on the duration of the crisis and the uncertainty it brings. According to some estimates, the short-term crisis is expected to result in a 5% drop in GDP. First indications that the return to normal operation of the Slovenian economy is near were the announcements that several lockdown measures were to be relaxed by the end of April 2020. Nevertheless, the actual fall of the economic activity will depend on the effectiveness of the state’s actions, where Slovenian politicians have promised one of the largest stimulus packages in the EU (estimated at more than 6% of its GDP) but they will have to be implemented in an effective way.

Slovenian public housing scheme kicks off

Posted on by efalucskai

A boom in residential construction is underway in Ljubljana, Slovenia, having a knock-on effect on real-estate prices in the whole country. It will still not be enough to change the trend of rising residential real estate prices and rents. To offset the unaffordable luxury apartments, there is a national policy to build public housing.

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

 

Residential boom in Ljubljana, Slovenia – but can people afford luxury apartments?

After almost a decade of the worst crisis in residential construction in the history of Slovenia, residential construction has turned the corner. Most of it is due to very ambitious plans for constructing new multi-dwelling units in the capital city of Ljubljana. Several smaller developments of luxury residential properties commenced in 2018 and 2019, but their prices are usually too high to impact the price level and availability of housing in the whole city. While a total of almost 1500 new residential units are in planning phase or under construction currently in Ljubljana, only 500 will be completed before the end of 2020 – and most of them will be prized in the luxury range of EUR 4500 – 6000 per square meter, and thus, inaccessible for the majority of the population.

Even so, demand is likely higher. Before the crisis, an average of 1500 units was sold annually in Ljubljana. With the much-improved economic situation in Slovenia, full employment and easily accessible credit, demand for apartments, in Ljubljana in particular, has very likely returned to that level. Reasonably priced apartments for young families are especially in short supply due to lack of new construction.

The latest EECFA Slovenia Construction Forecast Report with analysis and forecast on the housing market up to 2021 can be ordered on EECFA’s website

Public housing scheme – is it viable?  

For that reason, both the local municipality and the national government decided to significantly increase the construction of public housing. They have started the construction of 672 new dwellings at the Novo Brdo neighbourhood that will be completed in 2 years. The National Housing Fund of the Republic of Slovenia, which is building 498 of them, has obtained a loan of EUR 50 million from the Council of Europe Development Bank (CEB) for the construction of more than 800 dwellings across Slovenia, most of them in the Novo Brdo development in the western part of Ljubljana. The local municipality of Ljubljana will construct another 174 dwellings. All of them will be available for rent with rental prices of EUR 6-8 per sqm. The size of the dwellings will be between 30 and 80 sqm. The total value of this construction investment will be EUR 56.8 million.

There are plans to add thousands more dwellings in the next few years – 10000 new dwellings available for rent to young families by 2025 according to the national housing policy. If the policy proves to be successful, it will increase the supply of dwellings in Ljubljana by almost 10%. This would certainly have a major effect on real estate prices in Ljubljana. As Ljubljana represents more than half of the residential market in Slovenia, it also acts as an anchor for residential prices and rents – so a higher supply and lower prices of dwellings in Ljubljana would lower demand for dwellings in the rest of Slovenia as well.

However, this might be impossible. The national housing policy Continue reading Slovenian public housing scheme kicks off

The past, present and future of Port Koper

Posted on by efalucskai

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

The largest Slovenian civil engineering project in recent history – the construction of the second railway connecting Port Koper with the core international railway network in Slovenia – officially started in March 2019. Still, many questions remain to its successful completion.

Port Koper railway project – Source: http://www.drugitir.si

The past

Port Koper, which is the only deep-sea port in Slovenia, recorded an impressive growth in the last decade; it transported more than 24 million tons of goods, including almost 1 million containers (TEU) and more than 750.000 cars. Since 2009, it has increased the quantity of its throughput by more than 10 million tons. The throughput continues to grow fast.

However, its growth is encountering limitations from the infrastructure that was designed for much smaller traffic volumes. 59% of the goods has been transported from the port using rail, essentially reaching the capacity of the existing railway connecting the port with the international railway junction at Divaca.

Before recent and ongoing modernization, the existing railway had a capacity of 72 train compositions per day, allowing for the annual transportation of 9.2 million tons of cargo. When the modernization is completed, the capacity of the existing railway will increase to 14 million tons. Yet, with projections of Port Koper reaching 35 million tons of throughput by 2030, this essentially means that all additional cargo will have to be transported on road. This ultimately results in doubling the current road cargo transportation by 2030 and tripling it by 2040.

More about Slovenian civil engineering can be found in the EECFA Slovenia Construction Forecast Report. Sample report on eecfa.com

A simple solution would be to expand railway capacity by constructing the second railway next to the existing one, but unfortunately, this is not possible as the existing railway was constructed in 1967 as an industrial railway owned by the port. Due to its history and very difficult terrain with very steep gradients, it does not fulfil technical EU standards for the core TEN-T railway network. Thus, the construction of the second railway actually requires the construction of the whole new railway with two tracks to enable longer train compositions and faster speed.

Since 1996, and in the period of 10 consecutive Slovenian governments, 17 different technical plans have been prepared for the construction of the new railway.

The present

The final plan obtained a building permit in 2016 and will allow for the construction of 27.1 km of new railway. Together with the existing railway, the capacity of the new railway will be 231 train compositions per day, making the transportation of 43.4 million tons of cargo possible. Its steepest gradient will be 17%, while the existing railway has the steepest gradient of 26%. In order to achieve this key technical characteristic, 37.4 km of tunnels (including service tunnels) and 1.1 km of viaducts will need to be constructed. This plan is still being adjusted to construct a full two-track railway as the existing building permit only allows a single-track railway with service tunnels.

This will further increase the price of the project. Estimated construction value of works Continue reading The past, present and future of Port Koper

Ljubljana among cities with the fastest growing real estate prices in the world

Posted on by efalucskai

Real estate prices in Slovenia have been increasing at a furious pace

Ljubljana, the capital city of Slovenia, has strongly rebounded from the recession. Since the bottom of the recession in 2015 till 2017, the average real estate price has increased by 15%. However, the price growth accelerated in 2018, making Ljubljana one of the hottest real estate markets in the world.

Written by Dr. Ales Pustovrh – Bogatin, EECFA Slovenia

Ljubljana Castle Hill and City Center – Source: visitljubljana.com

Following the peak in 2008, the Slovenian construction and real estate markets experienced a catastrophic slump. Total construction output decreased from EUR 4.6bln in 2008 to EUR 2.3bln in 2016 according to EECFA. The average real estate price in Ljubljana dropped by 25% between 2008 and 2015 (although the average price hides significant differences in price trends in different neighbourhoods and real-estate segments).

However, on the back of the strong economic growth in the last few years, prices started growing again. In Ljubljana, they increased by 15% between 2015 and 2017 according to GURS[1], the national database. In 2017, KnightFrank’s Global Residential Cities Index estimates that residential real-estate in Ljubljana has increased by another 4.4 %[2].

And the pace of real-estate price hikes seems to be accelerating further. Continue reading Ljubljana among cities with the fastest growing real estate prices in the world

Small is beautiful – and has the potential to grow!

Posted on by efalucskai
The Slovenian economy has strongly rebounded after the recession. This is finally improving the construction industry – and might even result in the implementation of some large construction projects

Written by Ales Pustovrh, Bogatin, EECFA Slovenia

Dragon Bridge, Ljubljana -source: http://www.visitljubljana.com

GDP is forecasted to grow by 3.6 % in 2017 – its fastest growth in the last decade. However, Slovenia’s GDP has been growing steadily for three years without lifting the construction industry. This time, it might also lead to an increase in construction output in Slovenia.

Construction output has been steadily decreasing since its peak of EUR 4.6bln in 2008 to EUR 2.3bln in 2016. However, it is almost certain that construction bottomed out in 2016 and has already begun to rise. The vibrant economic growth has increased demand for residential housing, especially since the credit flows started to go up last year following several years of a severe credit crunch. At Bogatin, EECFA Slovenia, we are forecasting the increase of residential construction by 30% until 2018, but the latest growth in credit to households hints that growth might even be faster!

Continue reading Small is beautiful – and has the potential to grow!