Foreigners have delayed buying properties because they can no longer come and view properties

There hasn't been a significant drop in the Zagreb real estate market, nor a significant correction in prices, but some things have changed compared to last year, however. There is a predicted drop in activity of around 10% on the Zagreb area, and 30 to 40% on the coast. Generally, there is less activity and foreigners who are significant property buyers, especially on the Adriatic, have a problem because it's difficult or almost impossible for them to come and view properties, and they have thus delayed their purchase. Boro Vujović, the owner of the Zagreb real estate agency Opereta nekretnine, estimates that the drop in the market is not more than 10% compared to last year which was excellent.

Most important label

"There is a visible decrease in interest from the diaspora, a slightly smaller interest from Adria coast buyers who, as a rule, would buy properties in Zagreb after a good season. On the other hand, domestic buyers have not decreased their interest. The most purchased are apartments, but houses and land are also being purchased.

According to our statistics, realized prices are the same as last year. As for the center of Zagreb, a visible number of property sales have taken place, although there has maybe been a correction in prices, but it is still a minor sample to be able to say something. There are too few transactions related to the center of Zagreb to be able to get a view on the situation. The earthquake changed a lot of things. Before, it was rare for anyone to look at a building's structural condition, and now it has become a rule. Today, it is one of the most important questions, which label the building has," emphasizes Vujović. When it comes to buying an apartment for tourist rent, there is also little activity. "The purchase in the center is small, and it's because there are no tourists. If that hadn't happened, prices probably wouldn't have stopped, but would have continued to rise. We're waiting for the next season because there is still a moratorium on loans, so owners haven't had to sell yet, and not many have decided to increase accommodation capacities because the situation is uncertain. If the next season is successful, then things won't be good for the market. Namely, the tourist season has a significant impact on the real estate market," explains Vujović. As for new buildings, Vujović emphasizes that interest is high if the building is located on a relatively solid location. As a rule, apartments are sold even before the building is finished.

Purchase through APN

Vujović says that the average price per square meter is around 1800 euros. However, he explains that new buildings are typically sold directly to investors. If we were to include the prices of new buildings, adds Vujović , the average price at this moment would be something over 2000 euros per square meter. "The market crash did not happen. We had two rounds of apartment sales through APN this year, so it has affected the increase in purchases with loans. Unlike last year, when about half of the apartments were purchased with loans, this year it has increased to around 65%. Some people have directed their savings into buying real estate due to low interest rates on savings," thinks the owner of Opereta. The owner of the Biliškov nekretnine agency from Kaštel Staro, which has offices in Kaštela, Split and Zagreb, Jasminka Biliškov, says that there is activity on the market, that the market is stable and that prices are stable. However, she notes that the drop in sales on the coast is around 30% compared to last year because foreigners cannot come and view properties, and a part of Croatian citizens have also abandoned buying properties due to the uncertainty. "The activity of foreigners has been reduced due to a justified reason because they cannot come and view properties. Before the pandemic, there were a lot of foreign buyers, but we are sure that such buyers have only delayed their decision," reminds Jasminka Biliškov. She adds that there is much smaller pressure on agency offices, but now quality buyers are entering the agency. "People who have decided to buy something are coming to us," says Biliškov. She emphasizes that the market is stable. "In Split, there are few new buildings, and in that part, prices are still quite high. We were expecting prices to fall this autumn, but it didn't happen. People know that it's safer to invest in real estate than to keep money, and interest rates on loans are very low. So, this isn't a bad time to invest in real estate," concludes Biliškov.

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