Price indices of second hand flats, Ljubljana and rest of the country, 2003-2006

Movements of housing price indices in Slovenia in last three years

In Slovenia there were significant increasing in housing prices all over the period 2003-2006 - at the average annual rate 13.9%.


In the same period also the price movement rate was increasing: in the year 2004 the price increase was almost 12%, in the year 2005 almost 14% and in the year 2006 nearly 16%.

The main reason for rising housing prices was the increase of prices for flats. They grew for 50% in 2006 in comparison to average prices of 2003, while in the same period prices for family houses went up for 40%. However, in the year 2006, both flats prices and family houses grew at almost same growth rate (16.1% and 15.5% respectively). This means that a significant push up has been recorded for family house prices in 2006.

Dwelling prices in Ljubljana went up more than in the rest of the country

In the period 2003-2006, in each quarter an average increase of 3.1% has been registered for flats prices in Slovenia. Even though price levels of flats in Ljubljana are already high, the average quarterly price increase rates in Ljubljana have been higher (3.4%) comparing to that in the Rest of the country (3.2%). Price levels of flats in urban and non-urban areas therefore continue to diverge.

Methodological explanations

The price index of dwelling transactions in the 2003-2006 periods was calculated on the basis of analysing the prices of market transactions of existing dwellings (excluding newly constructed dwellings) by using the so-called hedonic approach.

The core of this approach is the regression analysis of several physical properties and location characteristics of dwellings that influence the value of the dwelling and the formation of its market price. Physical properties of dwellings that are taken into account in the multiple regression analysis are: living area, age, year of reconstruction, total number of dwellings in the building, floor, equipment with telephone, electricity and sewage, and the type of heating. Location characteristics of dwellings valued with the regression analysis are: wealth of the neighbourhood, urban/non-urban location, tourist attraction of the neighbourhood, and distance from motorways and main roads.

By analysing the mentioned dwelling characteristics, 85% of the impact on dwelling prices in Ljubljana and 63% of the impact on dwelling prices in other places was explained. 

In the Ljubljana area around 28% of all dwelling transactions in the country take place and the price level is very high. Therefore, a separate regression analysis for two geographical areas - Ljubljana and the rest of Slovenia - was performed. The national index was then calculated on the basis of weighted price indices for both areas. For weighting, the transaction value of dwellings was used.

• Housing price indices, Slovenia, 2003-2006, 14kB
• Quarterly price indices of second hand dwellings, Ljubljana, Rest of the country, 2003-2006., 24kB