The Relationship between the Price of Real Estate in Slovakia and the Basic Interest Rate
The Relationship between the Price of Real Estate in Slovakia and the Basic Interest Rate
Author(s): Róbert HalenárSubject(s): Public Administration, Financial Markets, Socio-Economic Research, Administrative Law
Published by: Univerzita sv. Cyrila a Metoda v Trnave, Fakulta masmediálnej komunikácie
Keywords: Housing Price; Interest Rate; Real Estate; Salary;
Summary/Abstract: The article deals with the relationship between real estate prices in the Slovak Republic and the basic interest rate of the European Central Bank of the ECB. In the last decade, real estate prices in Slovakia have been rising. According to experts, there are two main reasons – a small increase in new real estate and low interest rates on mortgages. The first reason is related to the legislation in Slovakia, especially to the building law, which is old, inflexible and causes both a bureaucratic burden and the procedures it orders are lengthy and often unnecessary. The second reason is directly related to rising wages and declining mortgage rates, which are set by key interest rates. The article shows some indicators and examines the direct or indirect relationship between them.
Journal: Megatrendy a médiá
- Issue Year: 8/2021
- Issue No: 1
- Page Range: 68-74
- Page Count: 7
- Language: English