European Union. The real estate market that was only slowly developing in Nineties, gained momentum in past five years and substantial investments has been realized. The booming market attracted more credits from banks that actually have loosed their risk controls. Risk beared by the some developers has beeen transferred to banks that have agreed to fund disproportionate part of the investments. In the second half of 2008, the real estate demand has declined, moreover the entrance of Slovakia into Euro zone and the substantial devaluation of the currencies of the neighboring states (Poland, Hungary, Czech Republic, Hungary and Ukraine) has substantially raised the price of labor in Slovakia in comparison to other EU countries that are not members of the Euro zone. The paper shows the development of Slovak real estate market in the last years, shows the impact of the crises, tries to assess its consequences, and to formulate the necessary actions needed for the reduction of the impact of the crises on the real estate markets.