Slovenia is the first of the ten mostly former-communist countries that joined the EU in 2004 to adopt the euro, which will replace the tolar. Tourism has been the fastest-growing sector of the Slovenian economy in the last five years, helping it to produce the highest GDP of the ten newly joined EU members. There has been a corresponding growth in property prices during this time due, in part, to the result of a government scheme to incentivise property purchase by Slovenian youngsters and the liberalisation of foreign property ownership on entry to the EU.

Frances Sargent, managing director at Slovenian Properties says: "In the years between 2004 and 2006 prices generally rose by about 15 per cent but in some tourist hot-spots around Kranjska Gora, the coast and Ljubljana, prices doubled in this period."

Slovenia has benefited from the introduction of cheap flights to Ljubljana through Easyjet and Whizz Air, coinciding with its accession to the EU. The expansion of holidays on offer from British tourist operators to the Slovenian area has also helped to grow interest in the property market. Although Slovenia sees its adoption of the euro as a source of national pride, there are fears that the changeover will increase prices throughout the country, particularly in restaurants and bars. The European Commission has urged Slovenian shoppers to "vote with their feet" and avoid outlets that hike up prices unneccessarily. "Since time immemorial, new currencies have been seized upon by crafty shopkeepers as an excuse to raise – they may prefer to say 'round' – their prices," says Denise Blackburn at Moneycorp. "It is happening in Slovenia even as we speak, despite the best efforts of government and consumers' associations."

Only 7 per cent of businesses admitted that they would increase prices; many of these were tourist hotels and restaurants. Sargent advises tourists to compare domestic brands with those being imported for the best value. "Their wine is especially good and is often produced by lots of small vineyards rather than one large one," she says: "There are lots of local varieties to choose from."

Some say that Slovenia could be the last of the 2004 group to adopt the euro, as other countries will be put off by the public backlash. "This is unlikely," says Blackburn. "Even though it will be difficult for many of the new recruits to meet the economic criteria for membership, the political will of the EU is for universal adoption of the Euro. This was
demonstrated at the outset, when a blind eye was turned to several countries' failure to comply with the Maastricht rules. Indeed, new EU members are not allowed to opt out."

The Slovenian capital, Ljubljana, has been at the forefront of recent growth in the country, with investment originally focused on the central areas and now expanding to the suburbs and satellite districts. The coastal region of Primorska and the mountain district of Gorenjska remain the second most expensive places to buy property in the country. However, the Slovenian property market has yet to reach adulthood and there are plenty of investment opportunities still to be snapped up.

David Anderson from SlovenianProperty.com says: "As other more traditional markets, such as France and Spain are becoming saturated by foreigninvestment, the relatively untouched Slovenian property market offers an attractive alternative investment opportunity." Rare off-plan apartments in the ski areas of Gorenska are now available through SlovenianProperties.com. A ski studio apartment in Bohinska Bistrica, Bohinj, is on the market at 72,494 euros. The development is situated close to a wooded area on the edge of The National Triglav Park and at the foot of Bohinj's mountain range.

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For further information:
SloveniaProperty.com 
Slovenian Properties 
Moneycorp 

Article published on 5 February 2007