Two-room flat, 54 square meters, excellent location. Year of construction 1971, flat renovated, quiet surroundings.

Price? A small bargain! Everything included, the buyer will receive 110,000 euros, or 2,037 euros per square meter in one of the most sought-after new Zagreb quarters. Zapruđe. A one-room flat of 30 square meters on the seventh floor of a well-maintained building. Year of construction 1963, excellent location, good road connection, proximity to Avenue Malla. And here, too, a bargain price. The flat is sold for 64,000 euros, which will give the buyer 2,069 euros per square meter of floor space. The prices of apartments in Zagreb have, indeed, exploded in recent times, and it appears that they will not return to low levels anytime soon. However, despite the appetite of vendors, the Jutarnji list has data on sales of real estate that testify that astronomical prices of real estate, which we have witnessed since the Ministry of Construction, led by HNS Minister Predrag Štromar announced the fourth round of subsidized housing loans, in reality, do not hold water. Namely, - the advertised prices that vendors are advertising on internet portals, in reality, fall by as much as 35% by the time the sales contracts are signed, which is a hitherto unprecedented difference between the advertised and achieved prices of real estate.

Monthly average

According to the data from the Njuškalo portal, which publishes a monthly report on average advertised prices of real estate, vendors who sold apartments in the city of Zagreb over the past three months, have averaged over 2,000 euros per square meter of apartment. More precisely, the average advertised price in September was 2,079 euros per square meter of apartment in Zagreb, and in the following month, the price rose by another euro, with October concluding with an average advertised price of 2,083 euros per square meter of Zagreb real estate. Unfortunately, since the statistics on average achieved sales prices of apartments in Croatia are not available (there is only a statistic on new construction, but even this only for the first six months of 2019), the Jutarnji list came up with a different method to calculate the difference between the advertised and achieved sales prices of apartments: we requested data from the Ministry of Construction on average achieved prices for apartments sold in Zagreb during the fourth round of subsidized loans, and the statistics speak best for how unrealistic the advertised prices are.

Other statistics

According to the data provided by the Ministry of Construction, 909 apartments have been sold so far in Zagreb, and the average price per square meter of subsidized housing in 2019 was 1,507.90 euros. If we compare this figure with the average advertised price of 2,042 euros per square meter of apartment in Zagreb, according to individual monthly reports from Njuškalo, it appears that the advertised prices of apartments in the city are, on average, 35% higher than what is actually realized on the market, which is a striking indicator of the current situation on the real estate market. The calculation is far from perfect, considering that the sales of apartments through subsidized loans so far only constitute a part of the total sales, but given that the prices of apartments have risen most under the wings of the subsidies - it is not something to be taken lightly.

Another difference

In addition, the official statistics from the State Statistical Office on average prices of new construction in the metropolis also support the argument of Jutarnji, although the data is available only for the first six months of this year. These prices averaged around 1,639 euros per square meter, which is also much lower than the average advertised prices of vendors. As the president of the Association of Real Estate Agencies of the Croatian Chamber of Commerce, Dubravko Ranilović explained to Jutarnji, agents have been noticing extremely high differences between the advertised and achieved prices of real estate on the market for some time, which has surpassed the limit of 10%, which was previously considered the maximum difference between the advertised and realized prices. “ We have been warning for some time now that the situation on the market is unrealistic, and we believe that the differences between prices should finally be sorted out. However, experience shows that this will take a lot of time, as we have something similar on record from 2008, when the crisis began. Then, the market was frozen, and the number of transactions decreased by as much as 70%, and it took six months for prices to finally start coming down to a realistic level”, Ranilović recalls, adding that the comparison between the advertised and achieved prices of “subsidized” apartments has some flaws. Although there is no data on the typology of apartments sold under this model - so that we have data on apartments and similar - subsidies, in fact, have a lesser effect on apartments in the city center where prices are more stable, mostly small apartments are being purchased. The Minister of Construction data actually show that, since 2017, there has been an increase in the average realized price of subsidized apartments. While it was 1,300 euros in 2017, it increased to 1,450 the following year, and is currently just above 1,500 euros. source: novac.jutarnji.hr

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