Jelena Todorović, real estate agent, guested on Novi dan, commenting on property prices on the domestic market in Croatia. “Owning this year has been a record in terms of prices, however, those who have decided to invest in real estate to save value due to inflation saw a 20% increase in prices. The one who bought a property at the beginning of the year has now equated the value of the money, and if in the meantime, they rented out the property, we can say they also earned money,” she said. Todorović points out that, based on the statistics of 60% of the purchased property being paid in cash, and 40% in credit.

“There's money, clearly.”

“There’s money, clearly. It traditionaly invests in real estate. The Croats are not so skilled with stocks, so they traditionally invest in bricks. There's money, but not enough number of quality properties. The most are sought after concrete buildings, newer construction with minimal potential investments since there aren't enough skilled craftsmen in the market, and people are afraid of investing in renovation. The greatest pressure is on the newer segment of properties, and there's been the greatest increase in prices,” she explained. The expert added: “The earthquake has also done its part, with people previously looking at location, but now looking at location and concrete.” Todorović says Zagreb and the coast continue to have the greatest increase in prices. “Split is on its own limited area that can’t be expanded much, the prices in the center are high as are those in Dubrovnik or Rovinj. However, prices have also increased in Osijek, but only refers to new construction,” she explained. The agent touched on the issue of young families that are looking to invest in properties but lack the ability to do so. “Young people who can’t afford living in Zagreb, decide on life outside of Zagreb, in the surrounding cities like Sveti Ivan Zelina or Velika Gorica. The rise of interest rates has caused certain fear, everyone has raised their objections, and they're waiting for the situation to develop. Some young families are not able to follow these prices, the government should do something or offer them subsidized apartments for rent or for sale,” she noted. Additionally, the number of completed apartments is still significantly higher than last year. “Expected trend is a continuation of stabilization of prices. Unless interest rates rise too much, not much will change, but if they do, there will be certain problems. A part of the market will be lost as people won't be credit worthy, and the question is what will happen to those who are paying off their loans via credit. 36% of foreigners have purchased properties in Croatia, which poses a certain fear. They are people from high-paying regions, and the government should invest more in young families. Wages in the EU and our wages are not in equal competition, and the border regions will feel the biggest impact of increased sales of properties,” she concluded. Finally, she suggested that the APN credit model would be improved if the credit were spread across the whole year, rather than just annually. Taken from: Net.hr

About us

Information

Services

About us

Information

Services