Analysis of Impact Factors on the Real Estate Market: Case Slovenia

Ksenija Golob, Majda Bastic, Igor Psunder

Abstract


The real estate market is very important for every country, not merely because it ensures construction structures and infrastructure necessary for life and work, but also because it has a strong, multiple impact on the development of nation’s entire economy. Real estate market trends are strong indicator of trends in the entire economy.
Trends on the real estate markets have changed notably in recent years. As early as two years ago, the main characteristics of these real estate markets were domination of demand over offer, quick sales of apartments and a lack of “choosiness” on the part of buyers, all of which was accompanied by rising real estate prices, which has not abated in nearly two decades. Over the past two years, the conditions have changed notably: transactions are few, offer is dominating over demand, buyers are choosy, while apartment prices are falling.
In the past, little attention has been paid to the problems we are about to study. Some researches have been conducted; however, none were developed so as to be applicable to the entire territory of Slovenia. For the very facts stated above, we decided to study and present the impact factors on the Slovenian real estate market using a practical example.
The answers obtained through a structured survey questionnaire give rise to several questions. One of these questions is also what the primary factors are and how to form the best selection thereof. To determine them, it was our task to monitor the key factors. We obtained some of the information from past research and put them into the time context. Determining the goals and strategies, we elaborated a plan of the system for establishing the factors, and monitored the volatility of the selected indicators.
Included into the research were also investors, real estate owners, tenancy right holders, real estate users, administrators, managers, tenants, real estate agencies and companies, design and construction companies, as well as other individuals across Slovenia, with varying durations of work experience and varying education levels.
With the research that follows, we wanted to present the factors which most affect the real estate prices on the
Slovenian real estate market, resulting in their rise or fall respectively.
The role, significance and usage of the assessed parameters on the real estate market are important for efficient operation of construction company. There is a growing interest for modifying and determining the causes of the assessed parameters. Knowledge of conditions on the real estate market is extremely important for efficient and successful operation of an organisation. An analysis of the real estate market and the operation of construction companies represent a starting point for revamping it.
The goal of the research is to define the factors that must be taken into account for an analytical forecast of future trends in the fluctuation of real estate prices.
We have established that the main group of impact factors is associated with economic growth, interest rates, construction quality, speed of real estate sales and accessibility of funding sources.

DOI: http://dx.doi.org/10.5755/j01.ee.23.4.2566


Keywords


real estate market; construction; real estate prices; market factors; interest rates

Full Text: PDF

Print ISSN: 1392-2785
Online ISSN: 2029-5839