ZAGREB, September 23, 2020 — New buildings in the center of Zagreb are more stable and have become more appealing. But after the earthquake, people are looking for houses and land outside the city center.
During quarantine, when the economy was in lockdown, the real estate market nearly shut down completely. Since the relaxation of COVID-19 safety guidelines, interest in Croatia real estate is on the rise again.
Insiders say that the real estate market situation in Croatia is almost back to normal, given the considerable demand. At the same time, there is significantly less quality real estate available. Along with Zagreb, recent searches for available apartments were most active in Rijeka, Osijek, Split, Pula and Zadar.
Borislav Vujović, vice-president of the Real Estate Association in the Croatian Chamber of Commerce, explained the current situation to HRT. He pointed out that real estate in the center of Zagreb has become less attractive due to the earthquake. Although the location of buildings is desirable, the buildings themselves are not. Vujović said that the average asking price was about 500 euros lower than on March 15 of this year.
“It should be noted that the prices of newer buildings in the center remain stable, and they have become more sought after. Their prices are rising, but since there are fewer of them, they are not impacting the prices in the city center,” he emphasized.
People Looking for Land Outside of Capital
Vujović continued that the people who survived the earthquake in Zagreb want to move outside of the city. That they are looking for land to build quality and safe houses.
He emphasized that COVID-19 has also influenced the exodus from the center of Zagreb. “There is an increased interest in peripheral locations as well as in houses and land in those locations,” said Borislav Vujović.
However, he added that prices in these locations have not risen greatly because land and houses are now finally selling. “The turnover of houses was much lower than it is now. However, the situation has changed,” he said.
Foreigners’ Demand for Coastal Real Estate
As for the coast, he said there is great interest from foreigners for buying Croatia real estate. “This year there absolutely has been greater demand. Our traditional buyers, Slovenians, Austrians and Germans, are returning and looking at real estate,” he added.
Vujović explained that foreigners are not only looking for first-row apartments by the sea, but also more isolated houses. A market collapse did not occur, but he’s not expecting growth either.
He added that those who can take advantage of loan subsidies through APN should do so. He stressed that the situation is different now than in 2008 because we have historically low interest rates on savings and loans. “It is difficult to compare the situation then and now,” he concluded.
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