Soaring Real Estate Prices Favor Family Homes' Resurgence
The real estate market in Croatia is showing signs of a resurgence, with data from the Zagreb Institute of Economics and the Construction Ministry revealing a surge in transactions and trading volume in 2018.
According to the second edition of the real estate market review for 2018, a total of 104,000 properties were sold, with the number of flats changing hands increasing by 1,500 to 24,000. The sale of farmland dominated the market, accounting for nearly 40,000 transactions, although the value of the land sold decreased from 2017 to 1.6 billion kuna.
While specific data for 2018 is not readily available, several trends and factors can be inferred that might have influenced the real estate market during that period. Economic growth, with an average real GDP growth rate of about 3% over the last decade, could have contributed positively to the sector. In 2017, Croatia introduced the SSK mortgage subsidy program aimed at increasing homeownership, which might have started to show effects on the market.
Regional variations also played a significant role. Zagreb, being the capital and largest city, experienced higher property prices and more transactions due to its economic and business activities, making it a hub for real estate investment. Coastal regions like Dubrovnik and Split, popular for tourism and foreign investment, saw an increase in property prices and transaction numbers. In contrast, rural areas typically saw less activity in the real estate market, with lower property prices and fewer transactions.
In Zagreb, the median price of flats sold in 2018 increased by 4.9% on the year to 9,459 kuna per square metre. The highest median price for family houses was recorded in Dubrovnik, at 12,000 kuna per square metre. The total value of properties sold in 2018 was 32 billion kuna, which is 8.4% of Croatia's GDP.
For those interested, subscription to the newsletter is available for updates on the Croatian real estate market. It's worth noting that no information about real estate prices in Bosnia and Herzegovina or Austria was provided in the paragraph, and no advertisements or changes for Croatia's real estate market were mentioned.
In conclusion, while specific data for 2018 is not available, it is likely that Croatia's real estate market experienced growth due to economic stability, policy initiatives, and regional variations in demand and investment. For precise figures, consulting local real estate reports or government statistics from that period would be necessary.
Investing in the real estate sector of Croatia could have been a promising avenue in 2018, considering the surge in transactions and trading volume, as well as the growth in property prices, especially in cities like Zagreb and Dubrovnik. Opportunities for finance could also have presented themselves in the form of the SSK mortgage subsidy program introduced in 2017, aimed at increasing homeownership and potentially showing effects on the real estate market.
