Comments on: Croatia property prices dropping heavily http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/ Expats writting news from Croatia, subjects are Politics, sports and expat living Fri, 27 Jan 2012 20:26:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jason http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-4591 Jason Thu, 07 Oct 2010 09:25:16 +0000 http://www.croatiablognews.com/?p=458#comment-4591 Solid insights. A friend of mine did have some trouble with real estate there a couple of years ago. He was there on business (he's an expat, although not in the truest sense of the term) for a couple of years, and ended up marrying a local and settling there for the meantime. He was looking into buying a property for his family, but the authorities gave him so much trouble that he decided to pack up and leave. He is back in the US now with his family and goes to Croatia only for short visits to his wife's family. Solid insights.

A friend of mine did have some trouble with real estate there a couple of years ago. He was there on business (he’s an expat, although not in the truest sense of the term) for a couple of years, and ended up marrying a local and settling there for the meantime. He was looking into buying a property for his family, but the authorities gave him so much trouble that he decided to pack up and leave. He is back in the US now with his family and goes to Croatia only for short visits to his wife’s family.

]]> By: Jamais http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-3124 Jamais Tue, 27 Jul 2010 01:10:08 +0000 http://www.croatiablognews.com/?p=458#comment-3124 This is a very interesting article as I am in the beginning stages of researching properties in Croatia. Couple of questions...where do most of the ex-pats live? Why do you say that you can't rent your property when it is high season? Is it because there are so many available properties or because of some sort of residency law? Thank you in advance, Jamais Trujillo This is a very interesting article as I am in the beginning stages of researching properties in Croatia. Couple of questions…where do most of the ex-pats live? Why do you say that you can’t rent your property when it is high season? Is it because there are so many available properties or because of some sort of residency law? Thank you in advance, Jamais Trujillo

]]> By: John Sweeney http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-2409 John Sweeney Fri, 28 May 2010 10:45:09 +0000 http://www.croatiablognews.com/?p=458#comment-2409 Value requires careful assessment. An apartment in a simple block which may have a view of the sea but at ground floor has a poor environment ( this is not unusual in Croatia) could not be compared to a simple stone house ( but deserted) in a un-kept olive grove. It is a question of what we consider, and require, in the term of “quality”. As the saying goes one persons home is another person's castle ( or such-like!). In the past ten to fifteen years Croatia has sustained a massive shift in the private sector and its impact on the public environment. Sadly this has occurred with inappropriate measures from the State which, if in place, could have enhanced this private spending and perhaps directed in towards beneficial developments which ultimately would have brought “better value”. In other words just maximising the density of your plot which could sit next to a similarly one will not necessary mean you make a profit as it’s quite likely that many people will not want to buy your apartments as they do not offer anything different, special or likable even. This is obviously frustrating for those who have been lead to believe that Big is beautiful ( and therefore valuable). I would therefore council the owners and developers to think a little more outside the box, before either building new homes or trying to sell those that they currently have. Not a simple solution and clearly could not be seen as a one-fix concept of solution, but more of a shift in philosophy. However, in answer to the point that Chris raised; I would agree with the previous comment, prices will fall further unless all owners can sustain negative equity for ever! Value requires careful assessment. An apartment in a simple block which may have a view of the sea but at ground floor has a poor environment ( this is not unusual in Croatia) could not be compared to a simple stone house ( but deserted) in a un-kept olive grove. It is a question of what we consider, and require, in the term of “quality”. As the saying goes one persons home is another person’s castle ( or such-like!). In the past ten to fifteen years Croatia has sustained a massive shift in the private sector and its impact on the public environment. Sadly this has occurred with inappropriate measures from the State which, if in place, could have enhanced this private spending and perhaps directed in towards beneficial developments which ultimately would have brought “better value”. In other words just maximising the density of your plot which could sit next to a similarly one will not necessary mean you make a profit as it’s quite likely that many people will not want to buy your apartments as they do not offer anything different, special or likable even. This is obviously frustrating for those who have been lead to believe that Big is beautiful ( and therefore valuable). I would therefore council the owners and developers to think a little more outside the box, before either building new homes or trying to sell those that they currently have. Not a simple solution and clearly could not be seen as a one-fix concept of solution, but more of a shift in philosophy.
However, in answer to the point that Chris raised; I would agree with the previous comment, prices will fall further unless all owners can sustain negative equity for ever!

]]> By: Croatiablognews http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-2407 Croatiablognews Fri, 28 May 2010 09:26:23 +0000 http://www.croatiablognews.com/?p=458#comment-2407 Hi Chris, let hope that the prices stabilize, personally I although think that prices will drop a lot. Hi Chris, let hope that the prices stabilize, personally I although think that prices will drop a lot.

]]> By: Chris http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-2356 Chris Mon, 24 May 2010 13:27:38 +0000 http://www.croatiablognews.com/?p=458#comment-2356 How has this drop in values affected the holiday and second home market. We have seen a huge drop in values for second homes for holiday purposes else where in Europe where owners cannot sell their property. This has led to a more competitive market but has flooded the market with too many properties, I think where people are panicking trying to sell property that in a few years once the market has stabalised and a more realistic level, that allows locals to purchase and not inflated due to the second home market. How has this drop in values affected the holiday and second home market. We have seen a huge drop in values for second homes for holiday purposes else where in Europe where owners cannot sell their property.
This has led to a more competitive market but has flooded the market with too many properties, I think where people are panicking trying to sell property that in a few years once the market has stabalised and a more realistic level, that allows locals to purchase and not inflated due to the second home market.

]]> By: Croatiablognews http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-1440 Croatiablognews Wed, 24 Mar 2010 08:55:28 +0000 http://www.croatiablognews.com/?p=458#comment-1440 Hi John thanks for your insights! I my selves have limited experience in terms of dealing with real estate, so I generally in looks on the pricing level from perspective of running the property as a business. Based on that I had huge problems understanding why the property prices exploded like they did, not only here in Croatia but in most of Europe. If I look at the potential rental income, which you could generate from e.g. a villa at the Adriatic, the current prices level is minimum double if not triple compared to what it should be according to my calculation. Morten .-= Croatiablognews´s last blog ..<a href="http://www.medulin-croatia.com/hotel-medulin/">Hotel Medulin</a> =-. Hi John

thanks for your insights!

I my selves have limited experience in terms of dealing with real estate, so I generally in looks on the pricing level from perspective of running the property as a business.

Based on that I had huge problems understanding why the property prices exploded like they did, not only here in Croatia but in most of Europe.

If I look at the potential rental income, which you could generate from e.g. a villa at the Adriatic, the current prices level is minimum double if not triple compared to what it should be according to my calculation.

Morten
.-= Croatiablognews´s last blog ..Hotel Medulin =-.

]]> By: John Sweeney http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-1438 John Sweeney Wed, 24 Mar 2010 08:33:25 +0000 http://www.croatiablognews.com/?p=458#comment-1438 One of the main problems in Croatia is the table at which Value is set, its calculation and people's understanding and acceptance that property valuation has several variables. Conversely I have seen several valuation reports by the "larger" international property consultants, who rightly take residual calculation as a norm but base a valuation on hopeless optimistic yield values ( this is specific to commercial properties really). Clearly, the market must be based on actual sale and purchase data, i.e price and period of that sale (how long it takes to sell from start of offer)in Zagreb currently there are reportedly between 10-11 thousand unsold new apartments. On further investigation it's possible to see that most of these are in a low-quality band and have been in the most part put up for sale at vastly inflated prices. In central Zagreb offering prices range from 3300€ down to 2100€ (per square meter); the lower price being a discounted offer from 2300€. The actual apartments are not really anything special themselves (design wise)and the price is based primarily on geographic location only, with the quality of immediate environment being in most cases ignored by the owners as being relevant. In conclusion one could so there is a confusion, which is encouraged by such developments behind Gradska Kavana which reported offer apartments at around 10,000€ /M2, thus suggesting to many in the immediate area their property may have similar value. Of course the knock on effect on this confused state of valuation of property are the land prices which are often placed way over the scale of possibility simply because the owner thinks a buyer will value the site as they do, i.e. at the highest return rate. Clearly the way forward here is for a much stronger form of Property Association or forum which people could rely on for benchmarking their price range. Of course this is simplistic we all cry!...well yes, at face value it may be but there is a complexity which needs to be harnessed now to provide real-time guidance to the would be developer here and/or property owner. One of the main problems in Croatia is the table at which Value is set, its calculation and people’s understanding and acceptance that property valuation has several variables. Conversely I have seen several valuation reports by the “larger” international property consultants, who rightly take residual calculation as a norm but base a valuation on hopeless optimistic yield values ( this is specific to commercial properties really). Clearly, the market must be based on actual sale and purchase data, i.e price and period of that sale (how long it takes to sell from start of offer)in Zagreb currently there are reportedly between 10-11 thousand unsold new apartments. On further investigation it’s possible to see that most of these are in a low-quality band and have been in the most part put up for sale at vastly inflated prices. In central Zagreb offering prices range from 3300€ down to 2100€ (per square meter); the lower price being a discounted offer from 2300€. The actual apartments are not really anything special themselves (design wise)and the price is based primarily on geographic location only, with the quality of immediate environment being in most cases ignored by the owners as being relevant. In conclusion one could so there is a confusion, which is encouraged by such developments behind Gradska Kavana which reported offer apartments at around 10,000€ /M2, thus suggesting to many in the immediate area their property may have similar value. Of course the knock on effect on this confused state of valuation of property are the land prices which are often placed way over the scale of possibility simply because the owner thinks a buyer will value the site as they do, i.e. at the highest return rate. Clearly the way forward here is for a much stronger form of Property Association or forum which people could rely on for benchmarking their price range. Of course this is simplistic we all cry!…well yes, at face value it may be but there is a complexity which needs to be harnessed now to provide real-time guidance to the would be developer here and/or property owner.

]]> By: Croatiablognews http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-1078 Croatiablognews Wed, 20 Jan 2010 08:02:03 +0000 http://www.croatiablognews.com/?p=458#comment-1078 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 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

]]> By: China Law http://www.croatiablognews.com/croatia-property-prices-dropping-heavily/comment-page-1/#comment-1067 China Law Sun, 17 Jan 2010 22:39:40 +0000 http://www.croatiablognews.com/?p=458#comment-1067 I hope you continue running posts on Croatian real estate prices as there are a number of people looking to buy there. I hope you continue running posts on Croatian real estate prices as there are a number of people looking to buy there.

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