Monday, 11 April 2022

Croatian House Prices Up by 9.1%

11 April 2022 - Croatian house prices rose by 9.1% in the fourth quarter of 2021 compared with the same period in 2020, according to data from the National Bureau of Statistics (DZS).

House prices had continued to grow on an annual level since the second quarter of 2017. The highest growth was recorded in the second quarter of 2019 when they went up by 10.4% year on year.

In the last quarter of 2021, prices of newbuilds increased by 15% compared with the same period in 2020, while prices of existing residential properties went up by 8.4%. On average, house prices increased by 8.8% in Zagreb, by 11.7% along the Adriatic coast and by 4.1% elsewhere in the country.

Compared with the third quarter of 2021, house prices rose by 2.5%, with prices of newbuilds increasing by 3.9% and prices of existing residential properties by 2.3%. Prices of residential properties went up by 2.4% in Zagreb, by 3.1% along the coast and by 1.4% elsewhere.

Monday, 31 January 2022

Minister Announces New Call for Applications for Subsidised Housing Loans

ZAGREB, 31 January, 2022 - Construction Minister Darko Horvat on Monday announced a new round of applications for subsidised housing loans, noting that this year HRK 50 million would be spent for that purpose and that a public call for banks to submit their offers would be published in mid-February while loan requests would be submitted as of 21 March.

A call for citizens to apply for subsidised housing loans could be published in mid-March, Horvat said.

Since the relevant legislation is aimed at encouraging demographic revival, urban regeneration and reducing the number of young families emigrating from the country, the call will be open until the subsidies are spent, Horvat said in a post on his ministry's website.

The ministry plans to invite, on 16 February, a call for interested credit institutions to submit their offers regarding interest rates, as the first step towards publishing a new call for applications by citizens.

The ministry expects to publish a call for applications for subsidised housing loans on 9 March, when citizens will be able to start submitting their loan applications to banks.

On 21 March, banks are expected to submit, on behalf of their clients, requests for subsidies to Croatia Real Estate Agency (APN).

The ministry recalls that 22,169 requests for subsidised housing loans were granted between 2017, when the scheme was introduced, and March 2021.

In the families that use housing loan subsidies, more than 4,600 children have been born since 2017 and 13,130 children under 18 have been reported in the loan requests.

More than HRK 456.7 million has been invested in state-subsidised housing loans so far.

Wednesday, 1 April 2020

Housing Rental Prices in Zagreb Down 20%, Sales Halt

ZAGREB, April 1, 2020 - The coronavirus and recent strong earthquakes in Zagreb have led to a fall in rental prices in the capital of up to twenty percent while sales have slowed down drastically, the Večernji List daily reported on Wednesday.

There are some prospective buyers however their contact is mostly over the phone and of an informative nature, one realtor told the daily.

Before the outbreak of the epidemic, real estate prices in Zagreb and along the Adriatic coast were increasing by about 10% a year however that trend will temporarily be suspended. No one can be certain how much prices will fall, the daily said.

"We expect real estate prices to fall but it is difficult to estimate just how much. As soon as uncertainty grows, buyers and banks are more cautious," said Chief Economic Consultant at the Croatian National Bank Vedran Šošić.

There is a risk that salaries will fall, banks will see which activities are requesting loans and whether their employer has been affected and to what extent. People, said Šošić, are focused on more fluid assets.

The centre of Zagreb and environs have been affected by the 22 March strong quakes. According to the city's authorities 7,000 buildings were damaged in the earthquake and about 30,000 family homes.

More Zagreb news can be found in the Lifestyle section.

Saturday, 11 January 2020

Thousand Socially Subsidised Flats to Be Built by 2021

ZAGREB, January 11, 2020 - More than 8,000 flats have been built through the socially subsidised housing programme (POS), an investment worth HRK 4 billion, and 1,000 new flats are to be built by the beginning of 2021, the Construction and Physical Planning Ministry announced on Friday.

The flats are to be built in the following locations: Zagreb, Zadar, Split, Trogir, Solin, Biograd na Moru, Bol, Cres, Krk, Kraljevica, Lovran, Osijek, Poreč, Vis and Vrsar. The maximum price can amount up to 1,319.64 euro per square metre.

Apart from the price per square metre, POS benefits include a credit line which allows a loan without a guarantor, with an average interest rate of less than three percent, minimal ancillary fees, and a repayment term of 30 years, or 31 years in case of a one-year grace period, announced the Ministry.

All Croatian citizens can apply to buy flats from the socially subsidised housing programme, but citizens who are not yet homeowners are given priority. All candidates must be creditworthy.

The Ministry notes that a ban on leasing or reselling flats from the POS programme which have not been paid off in full was introduced in the last bill of amendments to the Socially Subsidised Housing Construction Act in July last year in order to prevent misuse in the reselling and leasing of flats bought through the programme.

More news about housing in Croatia can be found in the Lifestyle section.

Friday, 4 January 2019

Housing Prices Growth in Croatia Offsets Government Incentives

ZAGREB, January 4, 2019 - Despite the latest government measures, such as lower property sales tax, and planned subsidies for housing purchases, developments on the Croatian real estate market are not in favour of buyers because housing prices have increased by between six and seven percent since 2017, the Croatian Chamber of Commerce (HGK) said on Friday.

With the start of the New Year, property sales tax was cut from four to three percent, and it has been announced that the five-year housing subsidy scheme could be extended for another two years to include couples who already have a child, and not just those who have a child only after they become beneficiaries of the scheme.

"Despite the planned measures, developments on the real estate market are not in favour of buyers because prices of square metre of property throughout Croatia have increased by between six and seven percent since last year," HGK said, recalling that similar increases in house prices had also been recorded in 2017 compared to 2016.

In Zagreb alone, house prices increased by nine percent on average last year, with the average price of square metre jumping to 1,900 euros.

More news on the Croatia’s housing market can be found in our Business section.

Sunday, 21 October 2018

Most Beautiful Terrace in Croatia Selected

The terrace is located in the Srednjaci neighbourhood in Zagreb.

Friday, 25 May 2018

Subsidised Housing Law One Step Closer to Adoption

ZAGREB, May 25, 2018 - The government on Thursday adopted and forwarded to the parliament a final bill on subsidised housing (POS), which, among other things, adjusts the highest price of construction of POS housing to the real situation in the construction sector as well as facilitates the launching of a new subsidised housing programme.

Thursday, 1 February 2018

State-Subsidised Housing Initiative Expanded

ZAGREB, February 1, 2018 - The government on Thursday put forward to parliament a bill of amendments to the legislation on state-subsidised housing, known as POS, in order to enable a new housing programme aimed at retaining and attracting personnel lacking in certain industries, primarily in under-developed areas and to regulate the maximum sales price for POS accommodation and land.

Tuesday, 12 September 2017

Disappointing Interest for Government’s Housing Subsidies

A quarter of the appropriated money has remained unspent.

Tuesday, 15 August 2017

Subsidized Housing Loans Coming Soon

Given the high demand, the loans will be approved on the first-come, first-served basis.

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