Sunday, 6 June 2021

Real Estate in Croatia - Sales Down, Prices on the Rise

June 5, 2021 – The Croatian real estate market is very interesting and full of good investment opportunities. Many potential buyers were expecting prices to go down significantly during 2021, but is this really happening? A look at real estate in Croatia. 

Croatian economy has been going through turmoil in the last year. While the pandemic is wreaking havoc on the travel and tourism industry, devastating earthquakes in Zagreb and Central Croatia caused even more problems and shifts in the local economy. Incredibly, the traditionally volatile real estate market in the country doesn’t seem to be going through a serious disruption, at least when it comes to prices.

Zagreb, the country’s largest city, is experiencing a turbulent period. The real estate market of the city has been rattled both literally and figuratively by a series of earthquakes. The damage from the earthquakes exposed a poor state of many buildings within the city’s centre. At the same time, much of the Croatian coast has had a rise in property prices due to the region becoming a global travel hotspot in the last 5-10 years. Many of the most attractive areas like Dubrovnik or Split centres seem overpriced to anyone looking to buy. With all this in mind, it would seem logical the crisis Croatia is facing at the moment would force the prices to drop. Still, according to an article by Dnevnik.hr, the prices generally seem to be stable or are even rising.

Regional Differences

The real estate situation in Zagreb is dynamic. The aftermath of the earthquakes left many searching exclusively for new buildings outside of the city centre. Consequently, there is a rise in prices for such properties. At the same time, there is a drop in prices for some centrally located apartments, but the buyers are rare, especially in buildings that are awaiting renovation. On the coast, Dubrovnik, the country’s most expensive real estate market, is seeing a drop in sales. Reduced demand doesn’t seem to be having a direct impact on the average price. It seems most property owners believe in a quick recuperation of this popular travel hotspot. This is also true for the rest of the popular Dalmatian areas. In Istria, the market seems stable and attracts plenty of foreign buyers, especially from Slovenia, Italy, and Austria. Around half of the properties sold in Istria are bought by foreigners.

For more, follow our dedicated business section.

 

Sunday, 5 January 2020

Croatian Property Prices Rise Once Again, Certain Buildings Are Market Hits

As Poslovni Dnevnik writes on the 4th of January, 2020, it would seem that the Croatian property prices and thus the country's real estate market is finally returning to pre-crisis levels, at least when it comes to asking prices, and the volume and the number of transactions are also accelerating, according to a report from Vecernji list.

The Institute of Economics in Zagreb, together with the competent ministry of construction, published the second edition of the Croatian Real Estate Market Review for 2018, which shows that in 2018, there were 104,000 real estate purchases in Croatia and the value of real estate sold stood at a massive 32 billion kuna, or 8.4 percent of Croatia's GDP, according to the aforementioned newspaper.

Agricultural land was dominated by almost 40,000 transactions, but the value of the land actually sold has fallen from the previous year to around 1.6 billion kuna in total. Most of the money was spent in the housing fund - about 13 billion kuna, construction land accounted for about six billion kuna, and family homes accounted for about 5.7 billion kuna. In the year under review, about four thousand more homes were sold - just over 11 thousand houses changed owners.

The analysis of the sales contracts does not confirm that there has been a particularly dramatic increase in Croatian property prices, but that impression can definitely be obtained according to the required real estate prices.

For example, in Zagreb, the median price of apartments sold in 2018 was 4.9 percent higher than in 2017, amounting to 9459 kuna per square metre. The median price means that half of the just over 8,000 apartments sold went below that price and the other half was more expensive.

When it comes to other parts of Croatia, Split-Dalmatia County had the largest price spike in flats - about eight percent with a median price of per square metre costing 11,669 kuna, and in Istria - 6.7 percent - but a median price of 8722 kuna per square metre. In 2018, when compared to 2017, prices fell in eleven counties, most notably in Koprivnica-Krizevci, by 17 percent (4981 kuna), Lika-Senj (5469 kuna) and Požega-Slavonia by 11 percent, where you'd pay 3636 kuna per square metre in an apartment.

Lower prices for apartments sold have also been recorded in Dubrovnik-Neretva County, otherwise the Croatian record holder when it comes to cost, and in 2018, in Croatia's southernmost county, 520 apartments were sold, which marked a decreased of about 5 percent to 12,158 kuna per square metre.

With regard to family homes, significantly higher prices were achieved in cities and municipalities in the Adriatic region of Croatia, and the highest median house prices are of course in Dubrovnik.

Make sure to follow our dedicated lifestyle page for much more on Croatian property prices.

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