SLOVENIA Trends and Developments Contributed by: Blaž Ogorevc and Miha Štravs, Šelih & partnerji, o.p., d.o.o.
Outlook The Slovenian real estate market is increasingly shaped by broader structural developments. Hous - ing affordability has become a prominent public pol - icy issue, prompting renewed government initiatives aimed at increasing the supply of rental housing and regulating short-term rental markets. Environmental sustainability and ESG considerations are also becom - ing central factors, influencing development decisions and investment strategies, particularly in commercial real estate. Against this background, Slovenia’s real estate sector continues to attract both domestic and international investors. Nevertheless, the market is also facing several struc - tural challenges, including spatial planning con - straints, fragmented land ownership and the need to modernise parts of the existing building stock in line with new sustainability standards. The Slovenian real estate market, in short, presents a study in contrasts – opportunity and obstacle in equal measure. Yet in today’s investment landscape, suc - cess ought not to hinge on chance. Legislation and policy must be developed further, striking a balance between greater regulatory predictability on the one hand, and the responsiveness and flexibility on the other that will ultimately enhance the long-term attrac - tiveness of Slovenian property.
sent in multi-unit buildings, and introduces licensing and registration requirements. Financing Structures and Capital Markets Traditional bank financing remains the dominant fund - ing source for real estate developments and acquisi - tions in Slovenia. However, investors and developers are increasingly exploring alternative financing struc - tures. In particular, real estate investment funds with several AIFs and SIFs are playing an increasingly visible role in the market. These funds are typically structured as closed funds and are not publicly traded. By con - trast, RETT funds – although the regulatory framework exists – are not yet present on the market. Property-backed bonds and other capital market instruments that allow developers to diversify their sources of financing are only taking their first steps, but will surely find their way onto the market sooner or later. At the same time, cross-border investment transac - tions require careful consideration of regulatory com - pliance requirements, including anti-money launder - ing obligations, beneficial ownership transparency and, in limited cases, foreign investment screening procedures. ESG and Sustainability Environmental sustainability is becoming one of the most influential factors shaping real estate develop - ment across Europe, and Slovenia is no exception. Investors, lenders and tenants increasingly prioritise buildings that meet high energy-efficiency standards and environmental performance criteria. New devel - opments are commonly designed to achieve interna - tionally recognised sustainability certifications, while owners of older buildings face increasing pressure to upgrade properties to meet stricter energy per - formance requirements. Recent EU initiatives aimed at improving building energy efficiency are expected to accelerate the renovation of the existing building stock. These policies may require substantial invest - ment in building upgrades in the coming years, par - ticularly for older commercial properties.
565 CHAMBERS.COM
Powered by FlippingBook