||The development of the real estate sector depends on the business environment and economic development of the country. In the last several years Slovakia has undergone the serious structural changes which augmented FDI inflow and induced the growth of industrial clusters. This inflow had the serious implication in the real estate development. The whole business environment has been changed, flat income tax introduced, the pension reform started, some competencies situated at the central government were shifted to the local level, the government is trying to find the path toward the knowledge based society. Joining the European Union brought the new impulses for the development of real estate at the transborder regions. The proposed paper deals with above mentioned factors, shows their impact on the development of the real estate ( housing, administrative and logistic premises etc), in Slovakia, and particularly in capital city Bratislava, where the changes are most visible. At the same time it analyses the institutional impediments for the development of the sector and sketches the future perspectives.