Economy: Resilient Consumption, Inflation Below 4%
Industrial production declined by 2.0% YoY in May and by 1.3% over the first five months, mainly due to weaker output in transport equipment, basic metals and refined petroleum products. Part of the decline, however, reflects last year's strong production base, meaning the figures do not necessarily point to a significant weakening of industrial activity.
Inflation reached 3.5% in June and has stabilized just below 4%, while unemployment remained low at 4.0%. Retail turnover increased by 0.9% YoY in May, although cumulative growth over the first five months remained broadly flat at 0.2%. Despite elevated inflation and fiscal consolidation, household consumption remained resilient, supporting GDP growth of 0.9% in Q1. Economic activity is expected to accelerate to 1.9% in 2027, driven mainly by recovering global trade and stronger foreign demand.
Investment: Office Transactions Dominated H1 Volumes
Investment volume reached €137 million in Q2 2026 across five transactions, standing 13% above the three-year average for second quarters. Office was the only transacted sector during the quarter, signaling renewed investor interest after limited liquidity in the segment over the past two years.
Three transactions were completed in Bratislava, including the sale of The Mill in the CBD submarket from Immocap to REICO, CPI's acquisition of a 40% share in Einsteinova Business Center in Petržalka, and the sale of a smaller office building at Zámocká 4 in the historic city center. Two additional office transactions took place in Košice, comprising Business Centre Tesla 1 and a city-center office building previously owned by ČSOB.
Total investment volume in H1 reached €224 million, with both Q2 and overall H1 capital originating entirely from Slovakia and Czechia. This highlights the continued dominance of domestic and regional investors in the Slovak market. Looking ahead, several sizeable single-asset and portfolio transactions are expected to close during the year, with activity anticipated across all major sectors. Industrial real estate is likely to remain the main driver, reflecting its position as the most liquid asset class in recent years.
