Croatian housing falls further

13.09.2010 11:46
In August, the value of residential real estate in most Croatian towns once again fell from the previous month. This is due, primarily, an excess of supply.

Over the past month the price of residential buildings in Zagreb, decreased by 2%. In the resort towns of Zadar and Pula level of reduction was, respectively, 2% and 3.5%, and in one of the largest cities of Croatia Osijek - 8%.

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Popular Adriatic resort of Split has become one of the few localities where the registered price growth - 2% from July to August, according to Croatian Times, referring to the portal for real estate Crozilla.

According Marushka Vizek of the Institute of Economics Zagreb, because of the crisis and unemployment in Croatia has decreased domestic demand for housing. At the same time interest rates rose. As a result, this led to oversupply on the market. This situation is the key to a moderate decline in prices, experts say. And if, as expected, some analysts, the government will put on the market of property belonging to him, prices may fall even greater.

Foreign demand, according to Vizek not able to have a significant positive impact on the market. In Croatia, the cost of resort real estate, which is most popular among foreigners, is approximately equal to the value of objects on the prestigious northeast coast of Spain. And here in Portugal the price by about 20% lower than in Croatia.

Thus, the trend of price decline may continue until such time until an improvement of macroeconomic indicators, or until prices fall to the extent that they become competitive advantage of the real estate market in Croatia.
Content tags: Overseas property
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