He is convinced that this trend will not be permanent and it is realistic to expect a decrease in demand and to stop the trend of such a large increase in prices. He mentioned that he is not sure if there can be some significant correction of prices down, but it is certain that it will stop, due to lower demand. Although many expected that there would be a decrease in real estate prices due to the COVID-19 pandemic, the earthquake, and the war in Ukraine, the opposite happened. Real estate prices have continued to rise. - Everything that has happened has led to the situation where prices have been constantly rising over the past two years. This year, apartments in Zagreb are 15% more expensive than they were last year because all these reasons have led to the real estate market having prices and demand like it has today - said a real estate market expert, Boro Vujović, for HRT. He emphasized that inflation is present in the construction industry as well, and that in this year prices are generally higher by 15-20%, when it comes to new construction. When asked if higher living costs and rising interest rates will slow down demand and affect prices, Vujović replied that the situation is very complex, and he is not sure if such a concrete situation has ever happened in history. - We have inflation, money loses its value every day. On the other hand, what they have announced, the increase in interest rates, and tightening of credit conditions will certainly lead to a decrease in demand from buyers who buy on credit, and part of those who have bought on credit because of low interest rates to have a certain income from real estate, he said. He is convinced that this trend will not be permanent and it is realistic to expect a decrease in demand and to stop the trend of such a large increase in prices. He mentioned that he is not sure if there can be some significant correction of prices down, but it is certain that it will stop, due to lower demand. Vujović referred to 2008 and the real estate crisis that preceded the financial one, saying that it cannot be compared to the current situation, because back then real estate prices were rising, while today they are rising everywhere. He reminded that the circumstances are different, because we also had a problem with the Swiss franc, and there was a large number of new but unsold apartments. Today, it's not the same situation. Source: vecernji.hr

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