In a short period, urgency was created, a small negotiating space, and a superficial euphoria which resulted in a 20% growth in the price of new construction in some locations compared to the beginning of the year.

We can say that 2018 will be exceptional for the property market, but with a mild growth in prices and the number of purchases and sales, as we no longer expect sharp jumps like those experienced this year, but a slow, differentiated growth. This is the assessment of "The Detailed Analysis of the Property Market: What awaits us in 2018?", by Bore Vujović, deputy president of the Association of Real Estate Businessmen at the Croatian Chamber of Commerce and director of Opereta. The market seems to have caught its breath after the shock: along with the recovery of the economy and the growth of GDP, factors that automatically create a positive climate, which has a direct impact on the property market, a 10% increase in the average price of a square meter of a flat in Zagreb occurred in 2017 under the influence of the state subsidy for buying the first home, Vujović said, adding an explanation of how this happened. In a short period, urgency was created, a small negotiating space, and a superficial euphoria, which resulted in a 20% growth in the price of new construction in some locations, compared to the beginning of the year. "We haven't shown ourselves to be good forecasters, because the 'boom' that nobody expected occurred, mostly as a result of the positive economic situation, but also of the events on the property market," Vujović said, adding that he hopes that future subsidies will be implemented differently, so as not to have a direct impact on the movement of property prices.

This case also confirms that announcements about legal changes aimed at maintaining and attracting deficit occupations are welcome, but the problem of Lika and Slavonia remains. Construction of homes in cities where chronic shortages of doctors, teachers, cultural workers, and scientists exist is a solution to their housing issue, and to the scientific staff that will not migrate to attractive environments. In addition to other effects, such as encouraging construction and local entrepreneurship through new investments in construction, to attract and maintain deficit staff in public services, apartments are planned to be allocated for use while the official need lasts. Such measures are greeted after this price-shocking 2017, in which the market recovered, and only the official confirmation of the situation on the terrain is awaited - that for the first time since 2009, an increase in the number of transactions has been achieved, at least in Zagreb and on the Adriatic, if not at the national level, in 2017 compared to 2016.

This is not the case for Slavonia, which is still a "dead" property market. "Emigration of young people, who are the biggest potential buyers of property, is the greatest threat to the property market in the area of Slavonia, Lika, and poorly urbanized areas," Vujović said. Source: poslovni.hr

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