House prices may be halted, but a significant turnaround is not expected, says Vujović
A strong demand will be generated by easing property purchases for foreigners with the entry into the eurozone and Schengen
Rise in interest rates will make it more difficult for some to buy property, but not enough to change prices

Boro Vujović, director of the real estate agency Opereta, does not expect a dramatic turnaround in prices on the real estate market, given that a decline in demand is not expected.

A successful tourist season will traditionally stimulate demand, inflation will erode the purchasing power of money and people will be inclined to invest in real estate, and demand will be contributed to by Croatia's accession to the eurozone and Schengen. Vujović said as a guest on Bloomberg Adria TV that over 50% of transactions on the Croatian real estate market are made with own funds, and that in these circumstances, inflation is transferring bank money into real property. Inflation has been the main factor in the rise of square prices in recent times. However, people are thinking that it is better to have real estate that keeps the value of money better than money on the bank, where interests are de facto negative, emphasized the director of Opereta. "The tourist season was good, and as a rule, the money earned is used to buy real estate. I do not expect a dramatic turnaround in real estate prices. Due to the rise in interest rates, some buyers will find it more difficult to buy real estate, which will affect prices, but it will not cause a major turnaround, rather, it will slow down price growth." Prices will maintain high demand, and the upcoming entry into the eurozone and Schengen will facilitate the purchase of real estate by foreigners who already make up 30% of property buyers on the Croatian coast. In recent years, these have primarily been buyers from Germany, Austria, and Slovenia, and then also Hungary, the Czech Republic, Poland, Slovakia, Bosnia and Herzegovina and other countries. "The most sought-after are apartments, and new constructions, of which there are not enough, and they are sold even at the foundation stage. The same is true on the coast, where there is also a high demand for new constructions, but there are not enough of them either. Foreigners are looking for houses for rent and locations for construction, but primarily apartments," Vujović said. Taken from: bloombergadria.com

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