Market Overview Croatia was one of the few European countries that reacted quickly to coronavirus, introducing a complete lockdown in mid-March that successfully stopped the spread of the virus. The lockdown was lifted in May, and in June, tourists and buyers flooded into the country, triggering a second wave of the virus that continued into the fall. As of October 13, Croatia reported 20,993 cases of Covid-19 and 330 deaths, according to the New York Times coronavirus map. Throughout it all, the country's real estate market – which enjoyed several years of steady growth – managed to remain stable. "The market never really stopped," said Mrs. Mičetić. "My feeling is that it's been delayed by two to three months." During the lockdown, she practiced virtual property viewings with potential buyers, while those planning to visit in person were postponed to July, August, and September. Elena Nevskaya, a leading consultant at Adrionika Consultancy and Coordination, said that tourism most often dictates the demands for properties along Croatia's Adriatic coast. In May and June, there were twice as many inquiries from foreign nationals as in the same period in 2019, according to a Adrionika report. Many were seeking standalone villas with pools in the Istra region for around 300,000 to 350,000 euros ( $355,000 to $415,000), while villas along the Dalmatian coast were priced at around 1.5 to 2 million euros ( $1.8 to $2.4 million). (The Croatian currency is the kuna, in which businesses operate, although many transactions are done in euros.) Mrs. Nevskaya said that the pandemic, combined with the aftermath of the earthquake that struck Zagreb on March 22, led to a decline in prices across the entire country, supported by low mortgage interest rates, now around 2.5 percent. On the other hand, the latest quarterly report from the Croatian Bureau of Statistics showed that house prices had risen by 8 percent compared to the same period in 2019, including a 9 percent increase in Zagreb. The earthquake, which damaged many homes in the city center, reduced the supply and redirected the focus of some potential buyers. "We've noticed an increase in the number of people looking for houses and building plots rather than apartments," said Boro Vujović, director of Opereta, a Zagreb-based real estate agency and vice president of the Association of Brokers and Realtors in Croatia. "Both the coronavirus and the earthquake have made people feel better off in terms of space." In the luxury property market, Sotheby's saw a gentle decline in foreign interest over the past seven months, said Mrs. Mičetić, as people were unable to visit homes during the spring. However, there is a niche of clients who never lose interest. Between January and September of this year, the company listed 69 properties and sold 11, more than the 61 listed and 8 sold in the same period in 2019. The rural area of the Gorski Kotar region, like other less densely populated areas in Croatia, does not attract massive foreign interest, but interest is slowly growing, say real estate agents. Mr. Vujović said that the pandemic has sparked interest in vacation homes and agricultural land in the region, with clients seeking its clean air and water, as well as proximity to Zagreb and the coast. "After the pandemic," he said, "the value of isolation, nature, and peace has increased significantly." Who Buys in Croatia? According to a Sotheby's report, foreign buyers typically make up around 15 percent of real estate transactions, and Slovenians are usually at the top, given the shared border with Croatia. Mrs. Mičetić said she had seen inquiries from Austrian, Slovenian, and German buyers this year. Like the director of the Croatian Property Service, who noted an increased interest from Germans in Istra, where buyers often seek homes with sea views. New buyers today usually come from areas within reach by car to Croatia, particularly western Europe, and often inquire about other homes or investment properties. Buying Basics Croatia, which joined the European Union in 2013, allows EU citizens easier access to real estate through the law on reciprocity, which permits EU nationals to buy property without restrictions, as long as Croatians have the same right to buy in their home country. More than half of US states have reciprocity with Croatia, including New York, New Jersey, Connecticut, Massachusetts, and California. Non-EU citizens must obtain approval from the Ministry of Justice of the Republic of Croatia to purchase a property. Additionally, the buyer will need to find a Croatian lawyer – usually an in-house lawyer in an agency – to handle the contract signing. After the offer is accepted, the buyer will pay around 7 percent of the total property price, including taxes and fees, which include the agent's commission and attorney fees, as well as a property transfer tax.

About us

Information

Services

About us

Information

Services