The rise in prices that has been affecting the real estate market in recent years is also evident in the prices of commercial spaces. In addition to higher prices, data from the real estate portal Crozilla.com shows an increase in demand, particularly for office spaces, and as a response to market requirements, a large number of new commercial buildings and complexes have recently been launched. Data from the real estate portal Crozilla.com shows that in 2019, the prices of offices in Zagreb were advertised at an average price of 1589 euros per square meter, while in 2017 they were 4.3% lower. In 2019, the average price for renting Zagreb offices was 11 euros per square meter, while two years earlier, rent was on average 1 euro lower per square meter. In addition to the portal Crozilla.com, the rise in prices is also evident "on the ground": “The rise in prices is undoubtedly visible in commercial real estate, especially in office spaces. There are more and more cases where tenants, upon expiration of the initial lease agreement for commercial spaces that were agreed upon just a few years ago, are asked to pay a higher rent than they had previously paid. Partially, this is due to the fact that over the longer period and as a result of the previous crisis, there has not been continuous investment in new commercial square meters for business purposes, while demand has increased, as has the growth and development of the market and its general standards.” – said Borislav Vujović, director of the Opereta d.o.o. real estate agency

The era of affordable commercial square meters is over

Data from the real estate portal Crozilla.com shows that commercial spaces, in addition to domestic visitors, were searched by foreigners during 2019, with the most frequent visitors coming from Austria, Germany, Bosnia and Herzegovina, and Slovenia. The cities of Zagreb, Split, and Rijeka were the most visited, where the most searched were offices for sale or rent. Economic growth and a strengthened activity of foreign and domestic companies and investors have had a great impact on the increase in demand and the rise in prices of real estate, including commercial spaces. Representative office spaces of the highest classes have always been a status symbol and a significant factor in attracting customers, but they also play a big role in attracting quality workforce. From the Opereta agency, it is said that the most sought-after are office spaces for the needs of small and medium-sized companies that are well-developed and expanding their business, thus having a need for more square meters. In Zagreb, where offices listed on Crozilla.com were searched the most, there are extremely popular locations where, however, there is still a search for “a square meter more”. “There are still trend locations, such as Radnička cesta or more exclusive commercial skyscrapers where prices are significantly higher. Namely, companies are increasingly opting for higher prices and more expensive locations if this way they can provide more comfort and accessibility to their employees, and thereby adapt to the trends on the labor market due to the ongoing shortage of quality workforce.” – said Borislav Vujović If we compare the average prices of advertised Zagreb offices on Crozilla.com in January of this year with those from February 2017, the difference is around 10%. In January, an average of 1681 euros per square meter was sought, while in February 2017 around 10% less. Rents have increased in the same period by a little more than 1 euro, from 10 euros to 11.2 euros per square meter. “We are still waiting for the official figures for 2019, but what is visible to us is that the price for commercial spaces on quality locations and newly built commercial spaces is in constant rise, and that is regularly over 10 euros per square meter plus related running costs, so we can freely say that the era of affordable commercial square meters in Zagreb is definitely behind us.” Furthermore, investors are also appearing who are looking for larger commercial square meters as an investment or entrepreneurial venture in order to build new commercial square meters and then rent them out to tenants, thus achieving a long-term fixed income that is certainly higher than the opportunistic position of holding capital in a bank or some other form of investment.” – said Borislav Vujović for Crozilla.com. source: news.crozilla.com

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