Context of the Impact of Foreign Direct Investment on Residential Real Estate Prices in the Slovak Republic

Abstract:

The article deals with the issue of the impact of foreign direct investment - notably car company Jaguar Land Rover on the prices of residential real estate in the vicinity of the implementation of major automobile plant in Slovak town of Nitra. The investment was finally approved by the representatives of the plant in August 2015 and already in September of that year has become apparent different behavior in the market for residential real estate. Real estate prices until then are subject to a prolonged stagnation. According to the theory, housing prices affects the volume of demand and supply factors affecting the real estate market. Despite the fact that we know – the main, specific factors and their impact, while foreign direct investment is not included among them, we can state that has its own considerable, especially psychological impact. This impact reflects the current events in the property market in Nitra and its immediate surroundings.