The New Year's guest was Boro Vujović from the real estate business association of the Croatian Chamber of Commerce. He commented on the success of subsidized housing measures and also touched on the prices of rented apartments as well as what kind of movement in real estate prices is expected next year.

Boro Vujović from the real estate business association of the Croatian Chamber of Commerce was surprised by the record 4000 applications for subsidized mortgages in the latest round. "It turns out we are speaking against these measures, while people recognize them as good. The prices of apartments have risen for several reasons, and one of the reasons are also the subsidies. This is a good attempt and intention. The fact is that people have been buying and selling apartments at the price that was asked for in the net for sale in order to take advantage of the subsidy," he said, adding that it is good that the new round of subsidies has been announced, thus reducing the pressure. He says that banks are not those who inflate the price of apartments. He emphasizes that many consumers have problems with the valuations done by banks because valuators use data from e-real estate for valuation, but those are sales prices that are lower than the prices asked for in the ads, so it can happen that people then raise non-purposes cash loans to cover the difference. "Every fifth or sixth apartment from the ads is sold, and the difference between the requested and realized prices is at least 10 percent," he highlighted, adding that the Real Estate Agency has had the greatest impact on the prices of older apartments with subsidies, and there owners have taken the price up a bit. He also adds that the further we go from the center the higher the percentage of people who use subsidized loans.

Is the construction of buildings for rent apartments a good measure?

"The big European cities are building apartments for rent for certain groups of people, and this is one of the measures to keep people we want to stay in Croatia. In Zagreb, there is only one building made for rent, the rest are all individual landlords. We have a very high VAT rate of 25 percent for a new building. Everyone says that apartments are expensive, but when you see how much the construction costs are, the question is how much profit the investor has. Maybe we should encourage investors to not pay VAT immediately when they build apartments for rent, but rather to pay it in installments as the apartment is rented out, because they have to pay it upfront now," he explained. "We expect that prices have reached their peak and will no longer rise because many people have bought apartments, a lot of construction permits have been issued, and all of this should have an impact on price stabilization and calming," he replied to the question of what real estate prices are expected in the next year. source: hr.n1info

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