What is Happening with the Croatian Real Estate Market?
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Loading... - Emil Agard
- 30 Mar 2023
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The Croatian real estate market is behaving in interesting ways. The difference between the requested and realised real estate prices is increasing, and is currently reaching around 15 percent, which means that the owners' demands are not always realistic, especially when it comes to used real estate, it was pointed out on Wednesday at the 34th Real Estate Business Forum.
As Index writes, the forum was organised by the Real Estate Association of the Croatian Chamber of Commerce (HGK). As the president of that association, Dubravko Ranilović, said, it is not yet possible to say with certainty what the next year will look like, but he believes there will be a change in trends.
"There will be a certain slowdown in the real estate market; prices cannot rise indefinitely in this way," said Ranilović.
The economy of the EU, including Germany, is slowing down due to the crisis and heading towards recession, interest rates are rising due to inflation, and given that more than a third of real estate buyers in Croatia are foreigners, this will be reflected in the Croatian market in the next year, he assessed.
Ranilović stressed the importance of differentiating the Croatian market, with the coast largely dependent on foreigners, and the rest mainly on Croatian customers.
Regarding foreign buyers, the data of the Tax Administration show that, since last year, there have been a total of 31,361 sales of houses or apartments, 9,491 of which were sold to foreign buyers.
From July 2021 to June 2022, foreigners bought 12,518 residential properties in Croatia, or 36 percent of the total. With 3,501 purchased properties, Germans are in the lead, followed by Slovenians with 3,090. The number of real estate sales to foreigners is constantly growing, and Ranilović pointed out that in some cities in the coastal counties, it exceeds 90 percent. Read More…
