Residental real estate transactions in the time of recession

Abstract

The intention of the thesis was, to look for reasons and consequences of the real estate markets condition in the time of recession. At first the Slovenian apartment market was analyzed for the period of 2007 to 2013. Analytical areas of Celje, Koper, Kranj, Ljubljana, Maribor, Murska Sobota and Novo mesto were analyzed for data including number of apartment units sold and their average price [€/m2]. Furthermore the number of economically active residents, migration, net wages, registered unemployment, number of building permits issued, total area of newly built apartment buildings and apartment types were analyzed for chosen municipalities. Lastly a short anonymous survey was answered by representatives of larger real estate agencies that work in the analytic areas. Their answers help us with understanding the functioning of the real estate market. All the things considered we come to a conclusion that the price and sales drop of the apartments was mostly due to the rise of registered unemployment. The consequences of the recession were projected on the number of newly built apartment buildings, there was drastically less of them build after the crisis begun. We can notice the rise of rentable apartments on the market, that is due to the housing loans that were harder to get approved for the general population