Rising interest rates and housing prices impact Slovenia and Eurozone

Rising interest rates and increasing property prices are impacting housing affordability in Slovenia and the broader Eurozone. In Slovenia, housing prices rose by 9.1 percent year-on-year in the second quarter of 2026, with the average price for a used apartment exceeding 3,000 euros per square meter. In Ljubljana, this figure reached 5,000 euros per square meter. Concurrently, mortgage interest rates have begun to trend upward again, with the average rate for new residential loans rising to 3.2 percent in July.

On a broader scale, the European Central Bank (ECB) has implemented interest rate hikes to combat inflationary pressures driven by geopolitical tensions and energy costs. The ECB recently raised key rates by 0.25 percentage points, bringing the deposit rate to 2.50 percent. Experts suggest these measures aim to prevent temporary energy price shocks from translating into long-term inflation in wages and general consumer prices.