Fico: Housing Has Become Luxury and Market Has Failed, Offering No Solution

Bratislava, 17 February (TASR) - Housing has become a luxury, while the market has provided no solution and has failed in this regard, said Prime Minister Robert Fico (Smer-SD) on Tuesday in connection with rising housing prices during the launch of an international professional conference on affordable rental housing. "The situation has unfolded badly, reaching a point in 2025 at which we are seeing another sharp rise in property prices of up to 12 percent. Affording housing, as well as housing as such, has become an unattainable luxury. This can't be changed by relying on the magical hand of the free market," said Fico, who added that the prices of flats have reached abnormal levels, and those who want to buy a flat in Bratislava are "committing suicide". According to Fico, the attachment to home ownership is very strong in Slovakia, which is why people take out mortgages. "Should we again face a situation with high interest rates, as we did several years ago, the government will once again be prepared to introduce a subsidy mechanism. We can't allow those who took out mortgages at 1- or 1.5-percent interest rates to pay 5 or 6 percent," said Fico. Along with low-interest housing loans provided by the State Housing Development Fund (SFRB), Fico commented on the new system of state-supported rental housing, involving the private sector, as a potential solution for more affordable living. A State-Supported Rental Housing Agency (ASPNB) has been set up, and, having already signed contracts with four investment partners, the contracts with two additional investors are also underway. One of the incentives for supporting the construction of rental flats under this scheme is a reduced VAT rate of 5 percent. jrg/df