Despite announcements that the pandemic, followed by the earthquake, would disrupt the property market in Croatia, experts we spoke to say the situation is not as dramatic. In Istria, the demand for properties has always been high, especially from foreigners, and I have the impression that the number of those from the Zagreb area and its surroundings has also increased. I wouldn't necessarily link this to the earthquake and pandemic, but also to the preservation of the value of money. Savings in banks are not incentivizing, and investing in real estate has always been profitable – says Vlatko Mrvoš, a real estate agent at the Buzet agency and deputy president of the Association of Intermediaries in the Real Estate Trade at the Croatian Chamber of Commerce. He says that foreigners are usually more interested in apartments closer to the coast in well-known tourist destinations, while some of them and domestic buyers are discovering the interior. – Especially, they are interested in the northern part of Istria from Grožnjan to Oprtalj and Motovun and Buzet, where tourism is possible throughout the year with a quieter life in close proximity to larger cities. Especially popular are objects in old town cores, which you buy along with a touch of history – says Mrvoš, adding that the price per square meter differs, and in the interior of Istria it is from 1,000 to 1,200 euros, while in tourist destinations from 1,500 to 1,700 euros. In Slavonia, there are no significant fluctuations on the market, and from Zagreb, they have had a few dozen inquiries over the past few months after the earthquake. This is how Krunoslav Šabić, deputy president of the professional group at the Croatian Chamber of Commerce and owner of the Tasman real estate agency in Osijek, tells us. – This is just a certain minority, and not everyone will move there now. After the earthquake in Zagreb, there were no inquiries, but after the one in Petrinja. Anyway, we in Osijek, as the center of Slavonia, are recording good results in terms of market stability and equalization with the rest of Croatia; prices have been rising for three to four years and new construction is now around 1,350 – 1,400 euros for less expensive types of properties in the sense of large residential buildings. Luxury villas can be bought for 1,600 – 1,700 euros per square meter. Prior to three to four years ago, prices were even 40% lower. In this moment, demand is greater than supply – says Šabić. The situation is getting better in Lika, considers deputy president of the Lika Business Association HGK and owner and director of the Lika real estate agency Ivan Bižanović, who expects even greater interest in the next few years. – Lika is very well connected with the rest of Croatia because you are close to the motorway, which takes you an hour to Zagreb, Zadar or Rijeka. Compared to Zagreb, where it takes you the same time from Dubrava to Prečko, life is more relaxed and of better quality. I wouldn't say that interest in Lika increased after the earthquake and that many people moved there because of it. People always look for, and buy everything from agricultural land to construction land, dilapidated houses or houses that are up for restoration. There are no rules – explains Bižanović, adding that the real expansion on the Lika pastures will only take place in two and a half years when the moratorium on the sale of agricultural land expires, and then it will be possible to buy it even for foreigners. Depending on the location and type of property, prices range from 400 euros to several thousand euros. But now, Zagreb real estate buyers look at things differently, and the city center, which was considered a top location, is no longer the focus of price. On the contrary, buyers are afraid of it, and real estate agents are constantly saying that they do not have any interested buyers for that part of the city. – Even from the first earthquake, the situation changed. The corona brought it to a situation where we were left without tourism, which was a big generator for the center and rented apartments, so the earthquake matched perfectly, and interest in most apartments in the Lower and Upper Town decreased. Traffic was extremely small and in the autumn when people had already begun to forget about the earthquake and a new interest in apartments in the center appeared, but then the Petrinja earthquake came and all interest disappeared – says Boro Vujović, from Opereta real estate and deputy president of the professional association at the HGK. In line with this, the number of sellers who would like to sell their properties in the city center has slightly increased, but they are aware of the situation and have adjusted the prices. – Prices are around 2,000 euros per square meter – says Vujović, emphasizing that buyers are now more interested in properties in Velika Gorica or Sveti Ivan Žabno, which are close to Zagreb but with better construction. – Buyers are looking for reinforced concrete buildings, so, for example, new construction in Velika Gorica is around 1,800 euros per square meter, and apartments in the construction phase are sold without any problems. The situation in Zagreb is special, thinks Jagoda Kušević Grgurić, a real estate agent from the Mediar Nekretnine agency. – We haven't had much interest from buyers nor interest in the city center as well as the northern parts like Gračanica or Markuševac. We had a few clients with better payment capabilities who kept their damaged property in the city center, but they bought another one while their house is being renovated. What we've noticed at the beginning of the year is an increasing number of inquiries from individuals who want to quickly and immediately buy an apartment in a wider part of the city center, provided it is new construction – explains Kušević Grgurić, adding that the location is no longer the one that dictates the price. – We expect further continuity of the tendency to leave the city center and a policy will have to be introduced that will relate to buildings from the 30s and 40s, which will be extremely difficult to sell in the coming years. It is likely that even those that have a green plaque will go through reconditioning, as people understand that they are not safe – predicts Kušević Grgurić. The president of the Association of Real Estate Business HGK Dubravko Ranilović says that the real estate market in Croatia has not been extinguished since the beginning of the pandemic, but has been significantly slowed down. – Traffic is much smaller throughout the country and even in Zagreb, but it still does not reflect in the prices as much as it reflects in the significantly reduced traffic and trading in parts of the city that are older, such as the Lower Town or buildings that have been damaged by the earthquake. In the last few years, we have observed increased interest in new construction, and this trend has continued, especially now after the earthquake, with safety being one of the main criteria for purchasing – explains Ranilović, adding that market prices for real estate have not fallen in the country, and in the center of Zagreb, some individuals whose properties were damaged have only slightly adjusted them. Source: Poslovni.hr

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