Market of real estate achieved record results in September, followed by a slowdown in recent months. This does not mean a decline in sales but rather that prices are not in line with sales, leading to an elongated process of selling real estate. Prices have gone too high and the market is not quality - warns Dubravko Ranilović, president of the Real Estate Business Association at the Croatian Chamber of Commerce.

Appetites have grown. Owners of older real estate are asking for the same prices as newly built apartments. Since such a price is unrealistic, real estate is not being sold. According to data from the Real Estate Exchange, on average 1850 euros per square meter are being asked, but only 1530 euros are achieved. The best indicator of the trend is that from 180,000 listed real estate on Njuška List in a year, it sells from 28,000 to 30,000 real estate. We hear that it is much better in the segment of commercial real estate, as prices are more reasonable, based on possible income and acquisitions are not made if they will not offer returns. There is no slowdown in sales, and prices are not rising, including rental prices. Boro Vujović, founder and owner of real estate agency Opereta, explains that September is traditionally a 'stronger' month for selling real estate as people after a good tourist season decide to buy an apartment. He also explains how the real estate market is influenced by APN's competitions, which leads to an increase in prices per square meter, as limited deadlines for submitting applications for the competition put buyers in an awkward position, as they are unable to choose too many properties, and if an apartment has a land registry extract and a usage permit, they agree to a high price because they do not have time to negotiate. This then affects the entire market.

The market slows down further after the competition for subsidized mortgages. Everything with a deadline creates temporary demand and leads to an increase in prices and a slowdown in the market - says Ranilović, who considers a quality solution to be a permanent measure of subsidy. This model allows only those who would have bought it anyway because they are creditworthy to buy real estate - he explains. Only a third of people are creditworthy. This subsidy does not reach young people, scientists, students, or people with five children. The basic question we as experts ask is who is this intended for, who is not planning to buy real estate. Instead, the impact of subsidies on the market has led to increased rents and the fact that real estate prices are even more unaffordable - explains the director of the Kastel Zagreb company, the paradox on the real estate market. Mandatory apartment ownership Subsidies and the expectations of real estate sellers are not the only reasons for the price increase. This increase is linked to the cost of money, which has never been lower in the world, combined with interest rates, and people in Croatia, with negative interest rates on savings and deposits, have decided to invest in real estate where they can maintain their value and earn more, explains Ranilović, and points to compulsory apartment ownership as the next big problem shaking the real estate market. Increasingly, apartments are being bought for short-term tourist rental, which is shaking the real estate market. Compulsory apartment ownership leads to a decrease in the offer of apartments for rent, especially in the city center, and therefore prices rise again to high levels. The profitability of renting through Airbnb and similar platforms was recognized long ago abroad, and foreigners are increasingly buying apartments in our country. The tax policy is also in their favor. 'Low thresholds in combination with the non-existence of property taxes make renting an apartment the least taxed form of economic activity in the country', wrote Maruška Vizek, director of the Zagreb Economic Institute, in a commentary. Logically, foreigners do not want to invest in hotels anymore, and compulsory apartment ownership makes it possible for them to get a much better return on investment ...

The state has not equalized short-term tourist rentals and long-term rentals in taxes. A flat rate of 13% and 13% tax per bed is a significant difference. Last year, a record number of foreigners bought apartments in Croatia, namely 7,058. The most active buyers were Slovenians, followed by Germans (1,342) and Austrians (662). Foreigners bought 5,453 real estate properties in 2017 - he adds, pointing out that compulsory apartment ownership will give foreigners a much better return on investment. It is sad that this is being imposed again on the most vulnerable group, as there is a lack of apartments for rent, and students can barely afford one, and during the early season, they are evicted during exams. Why do foreigners go to sleep, and students are put out on the street? - asks Ranilović, calling on the Government to do something as this is not only unfair and irresponsible, especially in a time when everyone is competing in demographic measures to keep young people, but also leads to the devastation of public space. In overhyped construction, time is not spent on planning, and infrastructure does not follow the growing real estate - he concludes. Source: lider.media https://lider.media/poslovna-scena/hrvatska/ranilovic-zasto-se-strancu-da-spava-a-studenta-se-tjera-van-129481 '

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