Affected by the Novel Coronavirus pandemic, the Croatian real estate market may see long-term consequences

Two Sectors of the Market

- The Croatian real estate market consists of two segments: one for luxurious properties and the other for normal, everyday living spaces. - our interlocutor points out. - If a wave of cancellations were to occur, it would affect the second segment, in our opinion. I think that unrealistically high prices would have to be adjusted, and there would be no change where prices were not inflated beforehand. In Rijeka and Istria, apartments were sold for 1,200 to 1,500 euros per square meter, while in more attractive locations for 2,000 euros per square meter, unlike Split - says Papeš. In such a situation, according to Papeš, in Dalmatia, there is now a greater number of inquiries for high-class properties, with a simple reason: people have changed their minds about living spaces. They have come to understand how important it is to spend more time in their homes, rather than in small studios. That's why the demand for houses with a garden or apartments with a courtyard has changed. - At the beginning of the pandemic, we had clients from Austria, Hungary, and the Czech Republic who were thinking of buying a house in the Adriatic. But the corona situation made them change their minds and buy instead - explains Papeš. - Firstly, properties here are cheaper. With their main concern being auto destination, they want to be able to travel by car in case they need to do so. Secondly, they perceive Croatia as a 'corona-safe' country. One of the buyers made a comparison between Bergamo and the Croatian Adriatic, saying he would rather be in a Croatian hospital with respirators than in Bergamo in Italy, where healthcare does not have that technology - Papeš explains. It is already clear that some changes due to the pandemic have occurred, particularly by the beginning of the year. People were talking about a higher demand than offer, especially when it comes to high-quality living spaces and areas like Split, which does not have a lot of mass construction. As Papeš points out, for high-quality properties, the situation is now balanced, and anyone who has a high-quality property and is selling it at a real price can find a buyer. However, for high-quality properties, only ten percent of the total product offer. When it comes to Split, before the pandemic, everything and everything was sold, in Papeš's words. However, now, only quality and realistic prices are being sold. - There are owners who want to sell and those who want to buy - Papeš points out, noting that this market, although somewhat 'crazy', has a positive side. This is especially true when considering the state of the market over the past six or seven years, with an emphasis on buying and renovating properties for tourist rentals. The market on the Adriatic will be decided by the upcoming tourist season. - If it is normal, the market will be fine, if it is not, in the tenth and eleventh months, the offer will increase, and properties will be cheaper. We must not forget that most properties are bought on credit, so adjustments will be made accordingly - Papeš concluded. Zagreb and the Zagreb market had been considered the largest and most dynamic in Croatia, both before the crisis and after the earthquake. That is no longer the case. - What we who do not live in Zagreb are not aware of is that most people in Zagreb have suffered from PTSD due to the earthquake and that, in line with this, almost no one wants to buy old buildings. - Buildings constructed after the 1960s, following the devastating earthquakes in Skopje and Banja Luka, did not suffer damage, unlike older buildings. In April, almost no interest in buying apartments was seen, and now it has started to return - Papeš points out, although for new properties.

Offer and Demand

The following examples have been taken from the Njuškalo real estate portal and the offer in Zagreb. An exclusive, 98-square-meter apartment in Šestine is for sale, priced at 210,000 euros (21,422 euros per square meter) or the usual asking price, which is always lower than the realized price. On Trešnjevci, a 54-square-meter apartment is being sought for 130,000 euros (2,407 euros per square meter), while on Kaptol, near the cathedral, a 112-square-meter apartment is sought for 560,000 euros (5,000 euros per square meter). In Vrapča, an 80-square-meter apartment is sold for 129,000 euros (1,612 euros per square meter). Split has always been known for its high offers, prices, and demand. This is especially true this time around. On the Njuškalo website, we have found examples of lower prices (noted) for apartments. So, a 43.51-square-meter apartment on Bačvice was sold for 145,000 euros in March, but now it is being sought for 135,000 euros. A 60-square-meter apartment in Bol, which includes the price for a nearby plot, is now being sought for 195,000 euros (3,000 euros per square meter). On Kman, a 38-square-meter apartment in new construction is for sale for 134,000 euros (3,526 euros per square meter).

Zagreb ‘has gone Crazy’

The smaller the area of the apartment, the higher the price per square meter can be seen in the examples we have separated from Split, Dubrovnik, and Zagreb. In the Varoš area of Split, a 18-square-meter apartment, which can be used in conjunction with part of the courtyard, is being sought for 64,000 euros (3,555 euros per square meter). In Dubrovnik, on the Lapad peninsula, a 16.20-square-meter apartment (garçonnière) is being sought for 65,000 euros (4,012 euros per square meter). Zagreb, however, has shown the highest prices: a 19-square-meter apartment in the Pantovčak area is being sought for 77,000 euros (4,425 euros per square meter).

A Good Life - Gospodski

Alongside the Spliter's values, Dubrovnik, albeit not always the cheapest, has had its share of price increases. On the Njuškalo website, we have come across an apartment for rent on Ploče measuring 82 square meters for 320,000 euros (3,902 euros per square meter). Another apartment in the same area, measuring 51 square meters with a 30-square-meter balcony, has the same asking price of 320,000 euros, which works out to 6,274 euros per square meter. In the Gornji Kono area, the price per square meter for flats measuring 55 to 100 square meters is 3,220 euros.

Zadar and Šibenik are Still Affordable

In contrast, real estate prices in Zadar and Šibenik have been significantly lower than those in Split and Dubrovnik. Tako je u Zadru na lokaciji Belafuža, cijena kvadrata za luksuzne novogradnje iznosi 2.277 €. Na Poloutoku, za stan od 41 kvadrat, traži se 105.000 € (2560 € kvadrat). U Jazinama za stan od 120 kvadrata tražena cijena je 180.000 € (1500 € kvadrat), a u kvartu Diklo tražena cijena za stan od 130 kvadrata je 278.000 € (2138 € kvadrat). U Šibeniku, u centru grada tražena cijena stana od 86,43 kvadrata je 178.000 € (2059 € kvadrat). Na lokaciji Križ-Baldekin, cijena stana od 90 kvadrata u prizemlju je 115.000 € (1277 € kvadrat), a stana od 49 kvadrata u Varošu 70.000 € (1428 € kvadrat). Oni koji hoće kupiti, mogu na Njuškalu, tu je stan od 150 kvadrata, po cijeni od 150.000 €.

izvor: slobodnadalmacija.hr

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