When I look at e.g. the Danish market, which in the Copenhagen area had a similar price development as here, the price till now went down with around 20-25% since the peak, but still there is no sale.

Real estate Economist says that the housing burden has to go down on 40 – 45%, which means that prices has to decline another 15-20%.

Here in Croatia it is even worse, for a four person family with average incomes, it is impossible to buy a flat, so I guess here, we need to see huge price declines before something happens, of course EU membership might give a short peak on a high price level. But reality will soon return, especially when the start taxing land heavily, which they eventually will have to do, as the state has no where else to get money.

The new laws, which require all real estate agents and agencies to be licensed, have been widely welcomed by most people in the business and will immediately help create a professional and protected environment for foreign investors buying property in Croatia.

We should perhaps also consider whether the recent developments regarding the signing of the Lisbon treaty and the accord with Slovenia over the border issue, will now accelerate Croatia’s EU membership.

If that is indeed the case, we may see more and more sellers holding onto their properties, in the hope of prices rising even further once Croatia joins the European Union.