In the last year, Croatia faced various disasters – the global pandemic and the earthquake were just some of the triggers for the change in the real estate market. The general economic and economic situation of the world is unstable and really changes from day to day, but in the last year we can observe this to a much more intense extent.
Restrictions in the world caused various restrictions (both physical and financial), and some of the results were reduced mobility of the population, thus fewer moves, and less financial flexibility, i.e. less investment. Because of this, a market crash would be expected and we would think that now is an excellent opportunity to buy real estate cheaply. However, the situation is not like that – why?
Prices are continuously rising – the steepest rise in Zagreb
If you study the numbers a little, you will see that the price of real estate in our country is still in an upward trend. In certain parts of Croatia, primarily Zagreb and its surroundings, we can notice continuous growth – in the last five years, prices have risen by about 40%. This is primarily attributed to the centralization that Croatia is continuously experiencing, and today it is gaining momentum to the extent that the vast majority of hospital procedures and modern jobs definitely cannot be done anywhere.
In coastal climates, this number (price increase) is closer to 25%, and existing properties have risen in price between 30% and 50%. Therefore, the real estate market in Croatia is experiencing stable price growth, so it is good to invest in some real estate that will serve you either as housing security or as a business opportunity (let's say for rent).
So how does sales work?
Prices are rising, real estate is more and more, and people have unstable situations… Why is this happening? Well, subsidies and loans come into play. It is this idea that real estate prices are rising that motivates people to acquire real estate so that they can later profit from it.
So, in addition to the fact that Croatia encourages housing construction and subsidizes loans up to half of the monthly installment over a period of a few years, it certainly offers a large number of financial counseling regarding housing loans and accounts. That five-year subsidy that you get is not a guarantee that you will get by very cheaply, but many people still decided to make this investment considering that every child born also extends the subsidy period by 24 months. When you look at it from that angle, it's definitely worth securing a space for yourself and your family.
In Zagreb, the craze for apartments in the center has somewhat decreased, but the sale of houses on the edge of the city is experiencing a real boom – no one wants to be in danger due to potential earthquakes, and people have seen how nice it is to be somewhere in nature. It is interesting that existing real estate has a higher trend of price growth than new construction, which also contributes to the fact that people no longer want to live in old buildings whose safety they cannot determine or verify.
Subsidizing the state through APN loans in combination with the lifted moratoriums for loans has resulted in an uncertain situation, and in the coming years we will definitely see a new trend of buying real estate outside the cities.
This is the result of the fact that working from home is now an option for more and more companies and businesses, so people prefer to live a quiet life and travel to big cities only when necessary.
Will the growth trend continue?
Real estate prices are rising and the trend will continue – in the coming years it will be more and more difficult to get an apartment or a house at a decent price because the prices in ads are increasingly different from the real price of the property. It is a good idea to secure a living space now if you have the opportunity. Be sure to ask about APN loans and similar benefits that you could receive. There are some advantages for each age group, and financial counseling at the bank is by no means out of place.
Agency Pantovčak Nekretnine and its expert employees will help you with advice on buying real estate through APN, and at the same time choose the perfect real estate according to your wishes. Feel free to contact us for any inquiries.
