SLOVENIA Trends and Developments Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
support more complex capital structures while ensuring investor protection. Furthermore, real estate transactions are increasingly shaped by compliance with foreign direct investment, anti- money laundering and know-your-client obliga - tions, especially when foreign capital is involved. Advisers are paying closer attention to ultimate beneficial ownership structures and are working more closely with financial institutions to stream - line approval processes. Notably, the above-mentioned structures and instruments are not accessible to the general public on the consumer level. With approximate - ly EUR27 billion cash being held by Slovenian households in their bank accounts instead of being invested in state bonds, pension funds or the security market, recent government efforts in tackling this are more than welcome: Slovenia’s second issuance of “people bonds” was made in March 2025, but the report on emission value is still awaited. The Ministry of Finance is report - edly also planning to introduce personal trading accounts based on the Swedish example, which might enable the general public also to invest in real estate funds in a disbursed manner. Regulatory clarity remains one of the strong points for Slovenia. The country maintains a well-functioning land registry and relatively transparent zoning and permitting processes. However, some challenges persist, particularly around the length and complexity of procedures in cross-municipality developments (see above for structural issues). Stakeholder co-ordination and inconsistent interpretation of spatial plan - ning rules can delay project timelines, espe - cially in greenfield developments. Furthermore, the increasing stringency of energy efficiency requirements and ESG-related disclosure obli - gations means that legal due diligence must now encompass a broader array of compliance
checks, including those related to environmen - tal impact, heritage conservation and social responsibility standards. Investors are advised to work closely with local legal counsel and planning consultants from the earliest stages of project development. An emerging area of interest is the potential introduction of digital permitting systems, which are currently being piloted in select municipalities with the aim of streamlining approval workflows and enhancing transparency. It is also worth mentioning certain legislative changes and initiatives aimed at supporting affordable housing. First is the recent change in streamlining the permitting process for modular and prefabricated housing, and the second is a renewed initiative to tax non-residential prop - erty (ie, each additional property which the own - ers do not use for their primary residence). The City of Ljubljana has also announced a potential limitation, which focuses on sparsity of leasing options for residents and students alike. The City plans to restrict short-term leasing over plat - forms like Booking and Airbnb, except during the summer vacation period. Such a measure would certainly increase dwelling accessibility but it is facing strong opposition from operators of such services. Public-private partnerships are also gaining traction in certain sectors, particularly in the redevelopment of under-used urban spaces for mixed-use and community-oriented projects. In line with broader EU trends, Slovenia is also beginning to explore strategies for climate adap - tation in real estate development, nature-based urban infrastructure and – after devastating 2023 highwaters – flood-resilient building techniques.
924 CHAMBERS.COM
Powered by FlippingBook