Property market set to rise from skill shortage.
Wednesday 16.04.2008 (29 months ago)
Slovak Republic :: Trnava :: Property News
Slovakia is now the largest car producing country in the world per capita the SME daily recently reported.
The KIA factory in Zilina and the Peugeot Plant in Trnava, have contributed to a double in the number of cars produced last year - producing 105 cars per 1,000 citizens. The car makers plan to increase production and the automotive industry will require an additional 30,000 people by 2010.
However, record levels of low unemployment will force the industry to pay higher wages for the right skills and labour to meet output targets.
Even now, the Volkswagen plant pays an average monthly wage of SK34,000 excluding bonuses. Assembly line workers at the Peugeot plant in Trnava earn at least SK17,000 a month in bonuses and the average wage growth in this sector grew by 7% last year - and will exceed this figure in 2008 according to Jozef Uhrík, the president of the Automotive Industry Association.
The three car makers plan to manufacture 640,000 cars in 2009. However the increased output means a skill shortage will exist and it has been suggested that immigration rules be relaxed to allow workers to be brought in from not only Romania and Bulgaria but also from countries such as Vietnam and the Ukraine.
The obvious impact of this will be on housing. The country is already in the grip of a housing shortage for both sale and rental properties, and the success of the automative industry means tthe housing shortage will increase - putting upward pressure on sales and rentals.
With the average rental yield across Slovakia running at 10%, this figure is bound to rise as labour constraints force a relaxation in immigration rules.
Good news for buy-to-let landlords who seek the Holy Grail of both high capital appreciation and high rental yields.
© Prime Asset Investments Ltd.
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