Croatia property prices dropping heavily
Since the Financial and Economic crises hit the world, I have been wondering when the crises would have an impact on the real estate market in Croatia, which to my personal opinion is way over priced.
What do I based that on? Well although I live here and love to be here in the country, there is also I few things which are not so rosy and they should to some extent influence the real estate prices.
- It is very difficult to run a business in Croatia, according to doingbusiness.org Croatia rank number 103 of 183 countries in the world.
- Unemployment rates are high
- Croatia rank as one of the top two countries in the world in terms of effective income tax.
- Average net salary is modest.
- As a foreigner you can normally not rent out your real state in tourist season
- Etc.
So with these “minor” obstacles I have been wondering how people could justify and afford buying real estate for 2.000, 3.000 and even 4.000 Euro a square meter.
Well I guess situation was, that every body got caught by the sky is no limit stories, from all there the real estate agents and the banks handing out loans, to everybody who could spell the word “loan”, now reality occurs, which means quite a few people will have to settle with prices much less then two ears ago. Obtaining a loan is extremely difficult as more of the banks are bleeding heavily as a result of the crises.
The majority of people offering real estates for sale still think we are in 2006 and 2007 when they put up there real estate for sale, but a few people especially the ones who are in need of cash, have to sell at a realistic prices, here a few examples.
A business partner of mine recently managed to sell an apartment of his in Zagreb, he got 1200 Euro m2. (Few years ago price was 1600-1800 Euro) Another business partner of mine was offered an apparent south of Split with SEA VIEW for 900 Euro m2, all papers 100% clean, the company selling was a construction company having problem with finding money for salaries etc.
Personally I think prices should end up by 1000 -1500 Euro m2, of course depending of Location and type of property
Let us here what you think the price level will be in 2011
Average price of Croatian real estate in 2011
- 1.000 - 1.500 Euro per m2 - for a regular appartment with Sea view (50%, 1 Votes)
- Above 2000 Euro per m2 - for a regular appartment with Sea view (50%, 1 Votes)
- 1.501 - 1.750 Euro per m2 - for a regular appartment with Sea view (0%, 0 Votes)
- 1.751 - 2.000 Euro per m2 - for a regular appartment with Sea view (0%, 0 Votes)
Total Voters: 2
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I hope you continue running posts on Croatian real estate prices as there are a number of people looking to buy there.
For sure we will keep posting about the development on the real estate market here in Croatia, dont forget to sign up for our RSS feed or E-mail news letter, so you can stay up to date with the latest news about real estate in Croatia.
Brgds, The Expat blog team