Ratna kriza i inflacija: Stručnjake smo pitali što će se događati s cijenama nekretnina If the inflation continues, it's certain that there will be a slowing down of the growth in the number of transactions on the properties market, but not a significant drop in prices, says Boro Vujović According to the data from the Tax Administration, around 80,000 transactions on properties took place in 2021 (including sales of building land). There were around 27,000 transactions on flats, of which 9,500 were sold in Zagreb. As continuous growth of prices of construction material and construction services has taken place, while the demand is higher than the supply, prices have risen. According to the data from the State Bureau of Statistics, the sought prices at the level of Croatia have increased by 4.05% for flats and by 7.73% for houses, in comparison to the previous year. The same trend was visible in comparison to prices from 2019 compared to 2020. A square of a new flat in Zagreb was sold at the end of last year for around 15,500 kunas, while in other settlements for around 12,800 kunas per square. In two years, Zagreb square prices have increased by around 2,500 kunas per square meter, while in other places they are, on average, more expensive by around 1,000 kunas, confirms official statistics. Ukrainians are also looking for properties Trends from last year continued in the first months of this year. Boro Vujović, owner of the Zagreb-based properties agency Opereta, says that according to their statistics, prices of properties in the first months of this year were 10% higher than last year. The war in Ukraine only temporarily stopped the purchases, and now the market has returned to normal. The new thing is that a significant number of Ukrainians who fled the country due to the war are also interested in purchasing properties in Croatia. "We can see that a large number of Ukrainians who have come to our country want to rent and some of them even buy properties in Croatia. This has further increased demand since a good part of them are financially stable and want to resolve their housing in a more quality way," says Vujović. In Zagreb, people are most interested in completely new or recently constructed flats, while there is increasing interest in properties in neighboring towns - Velika Gorica, Karlovac, Samobor, and Zaprešić, particularly in land and houses whose prices do not exceed 200,000 to 250,000 euros. Although in the last few years this trend was a consequence of the pandemic, now, as explained by Vujović, migration to the Zagreb ring is a consequence of increasingly expensive property prices in the metropolis. "Every Croat wants to have a flat in Zagreb" Flats in Zagreb are bought by tenants, mostly through APNs, and among buyers, there is a large number of people who believe that properties are the best long-term investment. "According to our statistics, more than 30% of buyers who buy a flat in Zagreb are not from Zagreb," says Vujović. "That's why we say that every Croat wants to have a flat in Zagreb - because there are faculties and hospitals there, but also because buying a flat is a good investment." Vujović estimates that among buyers, around 20% are buying properties because of the inflation. Statistics for the last year show that demand for building land and houses was not only increased in the Zagreb County but also in the Krapina-Zagorje, Karlovac, and Virovitica-Podravina counties, and mostly houses up to 150 square meters are being sought. As always, the market in Dalmatia and Istria is dynamic. Marin Biliškov, director of the Biliškov Properties agency, says that in Dalmatia, demand for properties has been constant. Domestic buyers are most interested in flats in Split, Kaštela, and Solin, while foreign citizens are looking at tourist centers such as Rogoznica, Primošten, or Makarska, and houses or land in good locations. Biliškov also confirms that among buyers, there is a significant number of citizens who want to invest their excess funds in properties. "Some constantly look for good opportunities, whether it's a flat or a house or land in a good location, and one part of them counts on selling the property in a year or two," says Marin Biliškov. The war in Ukraine has not stopped transactions, even though it has affected the purchase of properties. "The situation in Ukraine can be felt, I hear people talking and thinking about buying properties in cases where agreements have not been finalized, but so far, no one has given up because of it," reports Biliškov on his recent experiences. When emotions prevail, price is not important Prices of properties are rising in Istria as well, and for some buyers, the price is not important, says Vlatko Mrvoš, director of the Proagent properties agency from Buzet. "The price is not important sometimes; it's a situation when reason disappears, and love takes over, emotions prevail. People fall in love with the location or the property and are willing to pay twice or three times more money than its estimated value. Istria is the heart of Europe and an auto-destination," says Mrvoš. After the pandemic, interest in properties in Istria increased because security and proximity became important, and that further increased interest from buyers from Slovenia, Austria, and Germany who need just a few hours to get to this part of Croatia. Besides proximity, Mrvoš emphasizes that Istria's advantage is also its rich history, excellent gastronomic offer, and numerous wineries. Alongside foreigners, properties in Istria are also bought by Zagreb residents, especially after the earthquake, but given the significant rise in prices, the question is who will be able to buy properties in the future. "We have gone beyond some boundaries, property prices have become unaffordable for our citizens. The state and local self-government need to do something to help domestic people get to properties, either by renting or buying. We are becoming a destination with a lot of properties and a small number of inhabitants," notes Mrvoš. Given that he also deals with selling properties in Dubai, he points out that prices of properties in cities like Dubrovnik, Split, Rovinj, and Zagreb are higher than in that city. According to the analysis he prepared, the average price per square meter in the center of Zagreb is 22,776.90 kunas, while in the center of Dubai it is 22,669.20 kunas, and in Abu Dhabi 20,628.73 kunas. The difference is +0.47% in relation to Dubai and +9.43% in relation to Abu Dhabi. There won't be significant changes in prices without significant shocks Property prices in Croatia have been growing for over five years, and given the current chaotic situation, it is difficult to predict what will happen in the near future. However, without significant shocks affecting the properties market, prices won't change significantly. "In these times it is difficult to predict anything. The war seemed unbelievable, but it happened, and the bomb even fell in Zagreb. While we have a trend of high inflation, low interest rates, it is difficult to expect any kind of turnaround in terms of price changes. If inflation continues, it is likely that the pool of people who buy properties with their savings will be depleted, while on the other hand, the creditworthiness of buyers who buy on credit will decrease because of the increased prices of consumer baskets, so it is certain that there will be a slowing down in the growth rate and the number of transactions. I do not expect any drastic drop in prices," concludes Vujović. Vlatko Mrvoš concludes that prices in Istria will continue to rise, especially considering Croatia's entry into Schengen and the introduction of the euro, which will further remove barriers and attract buyers from neighboring countries where properties are significantly more expensive than in Croatia. Due to the large interest of buyers and in the Biliškov Properties agency, they expect further growth in property prices in Dalmatia. Source: privredni.hr Ivana Barać/Franjo Maltar

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