The situation may last through spring, and this could negatively impact the real estate market in Croatia, says Dubravko Ranilović

Considering the warnings from experts that the coronavirus is the biggest threat to the global economy since the 2008 financial crisis, as stated in the recent report by the Organization for Economic Co-operation and Development (OECD), saying that a possible recession may happen if this process continues, we were interested in what this could potentially mean for the real estate market in Croatia.

In fact, the real estate business was one of the ones that suffered the most during the 2008 crisis, when many investments were left idle.

- If the situation with the coronavirus lasts in this or increased intensity, it will surely have a negative impact on the real estate market in Croatia - says Dubravko Ranilović, president of the Real Estate Business Association of the Croatian Chamber of Commerce.

THE IMPACT

However, as Ranilović notes, there is no significant damage to that market at this time, especially not to the part that depends on the acquisition and investment by Croatian citizens.

- The situation is completely different in the coastal areas and parts of Croatia in which foreign citizens are the buyers. Travel is still necessary for purchases, and travel is not currently desirable, so the entire "second home" real estate market in the Adriatic is slowing down. However, buyers and investors do not give up, but rather postpone arrivals and decisions for the next few months - explains Dubravko Ranilović. At this time, it is not possible to talk about the fact that the virus has affected the prices of local real estate.

- Everything depends on the duration and development of the situation, especially in Europe - he says. However, the coronavirus already negatively affects tourism globally, and we are canceling current tourist arrangements, congresses, private weekend trips.

- And if this situation continues for a longer period, there will be less income from tourism, and therefore less investors in real estate and overall less investment potential. If the situation continued through spring, it would affect all parts of the economy. The real estate market, without a successful economy, be it Croatian or global, will certainly slow and weaken. Only in a growing economy, in an optimistic environment, can the real estate market grow - said D. Ranilović.

FAIR

This week, the most important real estate fair in Europe, MIPIM in Cannes, was canceled, which was supposed to be held in mid-March. The organizers have only postponed the fair until June so far.

- We hope that this type of virus is indeed seasonal, and that it will be driven away by the first serious spring sun rays - concludes he.

On a global scale, the air transport industry and passenger traffic are suffering the most. How much impact it will have on local real estate markets is what many are asking today, and thus, for example, in one article, they also ask - how will this situation affect the destination that is a winter tourist top destination - Aspen, and what kind of impact it could have on the local real estate market, at least in the short term. There are no general answers yet, but there are predictions and speculations.

source: jutarnji.hr

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