Silently losing value. In a world where inflation eats your savings alive, the real question isn’t if you should invest — but how soon you can afford to start.
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Did you know the total value of all real estate in Slovenia has reached an astonishing €298 billion?
In contrast, Slovenians currently hold around €29 billion in bank deposits — about 10% of the total value of national real estate. This simple comparison already speaks volumes: real estate, not cash, is where true wealth has grown.
But what does this mean for the average Slovenian investor today? Should you buy real estate directly — or consider investing through real estate companies?
Let’s break it down.
Real Estate: The Cornerstone of Slovenian Wealth
Over the last two decades, real estate has become the main engine of wealth creation for most Slovenian families. Why?
✔️ Steady appreciation in property values
✔️ Long-term capital preservation
✔️ A tangible, inflation-resistant asset
Unlike bank savings or short-term investments, real estate has shown resilience, even during economic fluctuations.
The Problem with Money Sitting in the Bank
Slovenians are historically cautious savers — but that caution may have cost them. Here’s why.
Between 2019 and 2024, cumulative inflation in Slovenia reached approximately 21%. Prices across the board rose — food, energy, housing — and with them, the real value of cash savings dropped.
Let’s break it down:
- Cumulative inflation (2019–2024): ~21%
- Average annual bank deposit interest: ~0.6%
- Cumulative interest earned: ~3%
- Real loss in purchasing power: approx. –18%
✅ That means €100,000 saved in 2019 is now worth around €103,000 nominally,
❌ but in real terms, its buying power is equivalent to just €85,000.
Meanwhile…
Real Estate Gained Strongly
During the same period, Slovenian real estate prices go up by approx. 40–50%, depending on the region. In Ljubljana and other urban centers, growth was even steeper.
Let’s compare:
- A property worth €200,000 in 2019 is now worth around €280,000–€300,000
- A bank deposit of €200,000 in 2019 is now worth €206,000
- But after 21% inflation, that €206,000 has the real buying power of only ~€170,000
📊 Real Value Comparison (2019–2024)
| Investment Type | 2019 Nominal | 2024 Nominal | Real 2024 Value (adjusted) |
|---|---|---|---|
| Bank deposit | €200,000 | €206,000 | ❌ ~€170,000 |
| Real estate | €200,000 | €290,000 | ✅ ~€240,000 |
What’s the Lesson Here?
Whether you own property directly or invest through real estate companies, exposure to real estate has significantly outperformed cash savings.
Even for those without enough capital to buy an entire property, real estate investment companies now provide an accessible way to benefit from this asset class — with:
- Lower entry amounts
- Diversified portfolios
- Professional management
- Passive income potential
Final Thought: It’s Time to Rethink “Safe” Saving
If you’ve kept most of your money in the bank, hoping it’s the safest choice — it’s time to look at the numbers.
❌ You haven’t just not earned —
✅ You’ve actively lost value due to inflation.
Meanwhile, those who invested in real estate — directly or indirectly — preserved and even multiplied their capital.
The future belongs to those who position themselves wisely.
So ask yourself:
➡️ Are you saving money — or silently losing it?
➡️ Are you watching the market — or growing with it?
