Housing prices in Croatia have stabilized after two years of recession

11.03.2011 09:48
In January 2011 the cost of the Croatian housing a little grown up. Nevertheless, the problems in the economy does not allow to speak about the imminent return of the price level to pre-crisis level.

While the real estate market of Croatia develops mainly by foreigners, who are actively buying items on the Adriatic coast.

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By the end of 2010, claimed in advertisements the average price of real estate in Croatia fell by 11% compared with the pre-crisis 2008. According to market experts, the amount of actual transactions could be even lower. However, in January 2011 Real estate portal Croatia CentarNekretnina fixed price stabilization for housing (0.4% compared with December 2010).

In January 2011, on the Adriatic coast of Croatia, a square meter in the cottage was worth on average? 1,5 thousand, in the apartment -? 1.8 million (-11% compared to 2010). Average price of flats in Zagreb fell by 2,3%. In January, a "square" in the capital's apartment to be paid? 1,8 thousand, in the house -? 1,1 thousand

Despite early signs of stabilization, the price of the Croatian housing is not soon reached crisis level, according to analysts Global Property Guide. In particular, growth will be constrained by the high proportion of NPLs in the banking system of Croatia (9,5% of total loans). Moreover, by the end of 2010, GDP declined by 1.5% in 2009, also reported the decline of this indicator. The result of the weakening economy was a record level of unemployment - 16,9%.

In this regard, Croatia property is best sold on the popular tourist destination areas, especially the Adriatic coast. So, in Istria for 33% of real estate owned by foreigners, in the county Primorje-Gorski Kotar - 26%, in the county of Split-Dalmatia - 12% in Zadar - 8%, in the county of Dubrovnik-Neretva - 6%. Only 3% of foreign buyers are choosing the Croatian capital Zagreb.

In 2010, about 55% of all approvals for the purchase of real estate by foreigners has been given to citizens of Germany, the Austrians have 16% British - 6%, Hungary - 4% Dutch - 3%.

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