Zagreb real estate: what to expect from the market in the near future
The real estate market in Croatia is experiencing a jump in prices, which is a favorable sign, given the long recovery of the country after the financial crisis. Experts predict that the trend of increasing prices will continue in the future. This can be clearly seen if you analyze the real estate of Zagreb.
The capital of Croatia is developing very well. It is a perfect combination of cultural attractions and modern entertainment. Croatia is increasingly gaining popularity as a tourist country, which attracts not only recreational enthusiasts, but also investors, aimed at a stable and high income. Contributes to the latter fact and the demand for rental housing.
The real estate market in Zagreb has its own difficulties. There is very little space for new projects in the city. On average, no more than 10 houses are built here per year. Such limited supply makes investors even more interested and they are ready to invest money into the capital’s housing in order to get high rental income.
The cost of objects on the Zagreb market increased by 10-15% last year. According to experts’ analysis, these indicators are peak and stabilization can be expected in the near future. This year, Croatian GDP grew by 2.4%, which indicates an economic recovery, albeit slight, which is traditional for the current picture in Europe.
Prices for housing in Zagreb are the most expensive in the prestigious districts of the city, on the streets of Tuskanac and Pantovcak. Here the cost starts from 300 thousand euros and can reach up to 5 million euros. But the most popular are the objects, which are in the category from 500 thousand to 2 million euros. A house for two apartments can be purchased for 1 million euros, and for a mansion with a swimming pool and a garden to spend 2 million euros.
The situation on the Zagreb market is now similar to that of 2007. In 2014, the average price per square meter was fixed at 1620 euros, while in summer 2019 it was 2040 euros. According to experts, this increase in value is due to an improvement in the labour market. More jobs were created and salaries increased, which resulted in a higher demand for real estate that has not been observed for a long time. An important role in the rise is played by the development of tourism and mortgage lending programs, which offer low interest rates for the purchase of housing.
If we talk in general, since the financial crisis in 2008, the real estate market in Croatia has fallen by 50%. But the positive trends indicate the recovery of the segment and soon we can expect demand for new projects not only in the capital, but also in other major and tourist cities.