Apartment rent analysis in the Republic of Slovenia - case study of the municipality of Ljubljana

The graduation thesis present Acts that contributed to the development of the housing policy in Republic of Slovenia from 1991 onward. The main focus of the thesis is on the different types of rentals. Prices of profit rentals are determined freely, which is not the case of the non-profit rentals, where the price of the rental is determined according to the Housing Act. Rents for apartments in Municipality of Ljubljana are analysed in details and include comparison among advertised profit rentals, actual profit rentals and non-profit rentals. The correlations between the crucial elements that influence the particular rental type and the way in which they interact are presented. The data for the advertised non-profit rentals were gathered from various internet advertising sources, the data for the actual profit and non-profit rentals were gathered from the data base of the Housing Fund of the Municipality of Ljubljana. I worked under the assumption that prices for the advertised rentals and the actual rentals are mainly influenced by the location of the apartment, its surface area and its age; on the other side rentals for non-profit rentals are influenced mainly by their age and the apartment’s surface area. It is evident from the methodology of determination of the non-profit rent and practice in Municipality of Ljubljana that the location of the apartment is not considered at the calculation. Analysis of rents mentioned previously demonstrate that in average the prices for rents are the highest for advertised profit apartments, followed by the price for actual profit apartment and the lowest prices are for non-profit apartments, as was expected. Influence of age, surface area and location on particular type of rent was determined by the regression analyse. At the same time the z-test was used to see if the average prices on the unit of surface area of particular rent type on different locations are statistically significantly different. According to the results the investigated factors influence the price of rent on the unit of apartment surface area only in some cases. Average rents in Municipality of Ljubljana are in most cases statistically significantly different for particular administrative district. In the last part of my graduation thesis I analysed the yields of investments in the real estates comparing to the yields of investments in the banks. There is no clear answer whether it is better to be paying a rent or paying off a loan, because many factors such as stability of income, amount of the loan, legal certainty, etc., influence the result.