Commercial Real Estate - Slovenia

The Commercial Real Estate market market in Slovenia is projected to reach a value of US$67.79bn by 2024.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 2.31%, leading to a market volume of US$75.97bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest value in the Real Estate sector, reaching US$25.3tn by 2024.
Slovenia's commercial real estate market is experiencing a surge in demand due to the country's strategic location between Western Europe and the Balkans.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Slovenia has been experiencing significant growth and development in recent years.

Customer preferences: Slovenian customers in the Commercial Real Estate market are increasingly looking for modern and well-equipped office spaces. They prefer locations that offer easy access to transportation and are close to amenities such as restaurants, cafes, and retail outlets. Additionally, there is a growing demand for flexible office spaces that can cater to the needs of both small and large businesses.

Trends in the market: One of the key trends in the Commercial Real Estate market in Slovenia is the increasing popularity of coworking spaces. This trend is driven by the rise of startups and small businesses that require affordable and flexible office solutions. Coworking spaces provide a collaborative and innovative environment, which is appealing to entrepreneurs and freelancers. Another trend in the market is the growing interest in sustainable and energy-efficient buildings. Customers are becoming more conscious of the environmental impact of their business operations and are seeking commercial properties that are built with sustainable materials and equipped with energy-saving features. Developers are responding to this trend by incorporating green building practices into their projects.

Local special circumstances: Slovenia's strategic location in Europe makes it an attractive destination for foreign investors. The country is well-connected to major European cities, which makes it a convenient hub for businesses looking to expand their operations in the region. Additionally, Slovenia offers a favorable business environment with low corporate taxes and a skilled workforce.

Underlying macroeconomic factors: The development and growth of the Commercial Real Estate market in Slovenia can be attributed to several macroeconomic factors. The country has experienced stable economic growth in recent years, which has increased business confidence and investment opportunities. Additionally, the government has implemented policies to attract foreign direct investment and support the growth of the commercial sector. In conclusion, the Commercial Real Estate market in Slovenia is experiencing significant growth and development due to customer preferences for modern and well-equipped office spaces, the increasing popularity of coworking spaces, and the growing interest in sustainable buildings. The country's strategic location, favorable business environment, and stable economic growth are also contributing to the market's expansion.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.