Thursday, 10 March 2022

Price of New Flats Up 7.8% in 2021

ZAGREB, 10 March 2022 - The average price of new flats in Croatia in 2021 was HRK 13,713 per square metre, which is 7.8% more than in 2020, show data from the national statistical office.

In the capital Zagreb, the average price of a new flat was HRK 14,672 per square metre, 4.7% more than in 2020, while in other cities it was HRK 12,577 or 12.3% more.

The average price of a new flat sold by companies and other legal entities, not including the government-subsidized housing construction scheme, was HRK 13,843 per square metre, 7.6% more than in 2020.

The price of those flats in Zagreb was up by 4.6% to HRK 14,891, while in other cities it was 12.1% higher, at HRK 12,627.

The average price of flats built under the POS subsidized housing construction scheme was HRK 7,642, 0.8% down from 2020.

In Zagreb, POS flats cost HRK 7,689 per square metre on average, up 2.3% from 2020, while in other cities they cost HRK 7,472 per square metre, 7.2% down.

In 2021, 4,678 new flats were sold, of which 2,594 in Zagreb and 2,084 in other cities. Of the total number of sold flats, 82 were flats from the POS scheme and 4,596 were sold by companies and other legal entities.

In the second half of 2021, the average price of a new flat in Croatia was HRK 14,038 per square metre, 11% more than in the same period of 2020.

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Monday, 29 November 2021

Foreign Nationals Have Purchased 60,000 Flats in Croatia in Last 10 Years

ZAGREB, 29 Nov 2021 - The proportion of foreign nationals among property buyers in Croatia was 14 percent in 2010, while last year one in four real-estate buyers was a foreigner, Večernji List newspaper wrote on Monday. 

In the last 10 years, 314,000 residential properties have been sold, with the number of flats and holiday apartments sold ranging from 23,000 in 2020, which was their lowest number, to nearly 40,000 in 2010.

Foreign nationals have an increasingly important role in the real estate market as they have purchased 60,000 flats and holiday apartments in the last 10 years. While the proportion of foreigners among buyers was 14 percent in 2010, last year every fourth buyer of a flat or a holiday apartment was a foreign national, Večernji List said.

In 2020, foreign nationals bought four in ten properties sold in Istria County, three in ten in Primorje-Gorski Kotar County, one in four in Zadar County, one in five in Dubrovnik, and Šibenik, and 16 percent of the properties sold in Split-Dalmatia County.

In continental Croatia, the proportion of foreign nationals among real-estate buyers was around 2 percent in Međimurje and Varaždin Counties and was negligible elsewhere.

The eastern Slavonia region expects to see a surge in the number of foreigners after July 2023 when the ten-year ban on the sale of agricultural land to foreign nationals expires.

Last year, about 34,000 agricultural plots were sold for slightly less than HRK 1.5 billion, at the average price of about €3,300 per hectare. The price of farmland per hectare in Croatia is six times cheaper than in neighboring Slovenia and 13 times cheaper than in Italy. A hectare of arable land costs about €4,700 in Hungary and about €5,000 in Romania, the newspaper said.

"Whoever buys land in Slavonia, not for speculative reasons but to engage in agricultural production, will face the problem of labor shortage, because we do not have enough people even to pick apples," Željko Lovrinčević, an analyst at the Zagreb Institute of Economics, was quoted as saying.

He said that many people have become experts for grants and are adjusting to the tender terms in order to invest as little as possible and get as much money as possible without considerably increasing production.

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